Assistance For Business Owners

For Architects, Interior Designers, Builders…

We know many of you are getting increasingly nervous about where your business is headed in this Coronavirus Climate. Our team at ARCHLine.XP is with you and we’re woking hard to find ways to help you through this challenging period. The Australian Government is aware of the effects of this virus on the economy and small businesses and they’ve introduced a number of grants and subsidies to combat the negative effects. 

Greg Grant at KBDI has been kind enough to make a short summary of all the grants and subsidies offered to businesses to help you get through this period. We encourage you to ask your accountant about how you can access these incentives/subsidies, and make sure you’re ready to lodge or apply on time.

Do You Employ Staff?

If you employ staff, you may be eligible for the following (there are also subsidies if you are a sole trader/ work alone):

Boosting Cash for Employers

This incentive provides a potential $25,000 credit (applied in the activity statement system) to small and medium-sized businesses who employ staff, with a minimum payment of $2,000 for eligible businesses. The idea is to help provide cash flow support to entities with a turnover of less than $50 million (we’re guessing that’s most of you?!). This measure will benefit around 690,000 businesses employing approximately 7.8 million people. Ask your accountant how this will work for you, and start getting your accounts in order for an on-time lodgement.

Supporting Apprentices and Trainees

If you employ fewer than 20 full-time employees, and have one or more trainees or apprentices on staff, you may be eligible for a wage subsidy. This subsidy will cover 50% of wages paid from 1 January 2020 to 30 September 2020. Employers will be reimbursed up to a maximum of $21,000, per eligible apprentice or trainee ($7,000 per quarter). This measure will support up to 70,000 small businesses, employing around 117,000 apprentices. You’ll be able to register for the subsidy from early April 2020. Contact your Australian Apprenticeship Support Network (AASN) provider for more information.

Casual Employees

If you have a casual employee who is unable to work because they are sick or need to self-isolate, or if their income has been otherwise impacted by the economic downturn caused by the coronavirus, they may be eligible for income support payments. The Government is fast-tracking access to payments in certain circumstances by waiving the usual waiting period. Information about income support is available on the Services Australia website or by phoning 180 22 66.

Work on Your Own?

If you don’t employ staff, you may find relief in some accelerated depreciation deductions. (Note: employers can access this, too.)

Backing Business Investment (BBI)

This incentive is designed to support business investment and economic growth by accelerating depreciation deductions. It applies to eligible assets acquired from 12 March 2020 (to be used or installed by 30 June 2021). Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset cost. Ask your accountant what kind of purchases will qualify under this scheme, and consider if now may be a good time to invest.

And for all freelancers, subcontractors and small and medium business owners…

And for all freelancers, subcontractors and small and medium business owners…
Ring the ATO! Yes, this is a scary task, and nobody likes to do it. But now is not a good time to avoid the Taxman. The ATO is prepared to work with small businesses in deferring payments and scheduling payment plans. Don’t be afraid to ask them how they can help you through this period.