Income Support for Sole Traders & Partners
The government has temporarily expanded (for the next 6 months) the eligibility for income support payments (jobseeker allowance) to permanent employees who have been stood down; sole traders; the self employed and contract workers who meet the income tests as a result of CoVID19. Asset testing has been waived and waiting times have been reduced. These arrangements will commence on 27 April 2020.
The claim process has been accelerated and can be made via MyGov and a linked centrelink online account.
For sole traders and the self employed applicants need to make a declaration that their business has been suspended or turnover reduced significantly. In addition a declaration must be made that you are not accessing any other employer entitlements or income protection.
There is a requirement to actively look for work or in the case of the self employed to actively try and develop and sustain your business in order to maintain eligibility for the allowance.
Further information is available on the Fact Sheet: Income Support for individuals
Access to Credit for Small and Medium Businesses
The Coronavirius Guarantee Scheme has been developed to provide support for otherwise viable small and medium businesses who face significant challenges due to disrupted cash flow whilst still retaining fixed expenditure obligations including rent, utilities and employee entitlements.
Under the scheme the government will provide a guarantee of 50% to lenders for new unsecured loans to be used for working capital.
The guarantee will be provided to lenders where loans are issued on the following terms:
- Maximum total size of loans of $250,000 per borrower.
- Loan term is up to three years with an initial 6 month repayment holiday.
- Loans will be in the form of unsecured finance, i.e. borrowers will not have to provide an asset for security for the loan.
Further information is available on the Fact Sheet: Supporting the flow of credit
Temporary relief for financially distressed businesses
A safety net to against the threat of actions taken by creditor that may put you into an insolvent position and thereby force winding up of your business has been put into place.
This safety net involves the temporary adjustment of some of the conditions that allow actions to be brought against a business.
A Fact Sheet: Temporary relief for financially distressed businesses is available if you wish to investigate this further.
Additional Measures
There are additional industry and region specific incentives along with additional asset/equipment investment incentives. If you feel these incentives may be applicable to your business.
As always if you have any questions or wish to discuss anything further please do not hesitate to contact our office.