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COVID-19 Financial Support Update

  Feb 24, 2022

COVID-19 Financial Support Update

COVID-19 Financial Support Update

Businesses struggling with revenue during the Omicron outbreak can apply for new targeted funding, as announced by the government on Monday 21st February. Applications for the first payment open on February 28, with payments starting from 1st March. Find out more here.

How the COVID-19 Support Payment will work 

There will be 3 payments in total, available on a fortnightly basis. The new scheme is based on the understanding that the Omicron outbreak will pass over about 6 weeks. This scheme may be extended.

Each COVID Support Payment will be $4,000 per business plus $400 per full-time employee, capped at 50 FTEs or $24,000. This is the same rate as the most recent Transition Payment.

Who is Eligible?

Eligible Businesses must show a 40 percent drop in 7 consecutive days within the 6 weeks prior to the shift to Phase 2 of the Omicron response on February 15, compared to 7 days after that date.

Changes to the Small Business Cashflow Loans Scheme

Additionally, there has been changes made to the Small Business Cashflow Loans Scheme. This has been extended, allowing business that have already accessed it an extra $10,000. The updated repayment period is five years, with the first two years being interest free. Interest already accrued for those who have taken out a loan will be cancelled for the first two years. 

Tax Repayment Flexibility

Lastly, flexibility in tax payment dates and terms have also been extended. Businesses that are challenged in paying tax because of the impacts of COVID-19 should log on to myIR to determine if they can delay starting payments to a later date, or if any tax component can be written off.

As always, if you have any questions or you would like to talk to us about any of the subjects raised, please feel free to get in touch - we are here to help.

Take care.
The team at Malloch McClean.

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