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Commonwealth Business Assistance Package
On 22 March the Prime Minister announced that a total of $189 billion is being injected into the economy by all arms of government to keep Australians in work, and businesses in business. This includes regulatory protection and financial support. The key measures announced so far are:
Boosting Cash Flow for Employers
The government has enhanced the Boosting Cash Flow for Employers measure that was announced on 12 March 2020.
- The government will provide up to $100,000 (previously $25,000) to eligible small and medium businesses and not-for-profits that employ people with a minimum payment of $20,000 (previously $2,000).
- Small and medium sized business entities with aggregated annual turnover under $50 million that employ workers will be eligible.
- Under this enhanced measure, employers will receive a payment equal to 100% of their PAYG withheld (previously was 50 per cent) with the maximum increased from $25,000 to $50,000, the minimum payment being $10,000.
- An additional payment (up to $50,000) will be introduced for the period July to October 2020.
- Eligible employers will be entitled to the additional payment which will equal the total amounts the employer has received to 30 June 2020.
- The payment will be delivered by the ATO as a credit in the activity statement system from 28 April 2020 when they lodge their BAS or IAS.
- Quarterly lodgers will be eligible in both the March 2020 and June 2020 BAS’s.
- Monthly lodgers will be eligible to receive the payment for the lodgment months of March 2020, April 2020, May 2020 and June 2020.
- This payment will be tax free and will be automatically calculated by the ATO.
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Coronavirus SME Guarantee Scheme
The government will establish the Coronavirus SME Guarantee Scheme to help small and medium enterprises SMEs access working capital to help them get them through the impact of the coronavirus.
The measures include:
- The government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.
- The support will enhance lenders’ willingness and ability to provide credit to SMEs with the Scheme able to support $40 billion of lending to SMEs.
- It further supports the Reserve Bank of Australia’s announcement of a $90 billion term funding facility that will reduce the cost of lending, with particular incentives to lend to small and medium enterprises.
- The government will guarantee up to $20 billion to support $40 billion in SME loans.
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Temporary relief for financially distressed businesses
Temporary measures have been introduced to support otherwise profitable and viable businesses that may face financial distress from the impacts of COVID-19.
The measures include:
- A temporary increase on the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000.
- The statutory timeframe for which a company is required to respond to a statutory demand will also increase from 21 days to six months.
- Temporary relief from Directors’ personal liability for insolvent trading will apply with respect to debts incurred in the ordinary course of the company’s business to allow companies to have the confidence to trade through COVID-19.
- These measures outlined above will apply for a period of six months only.
Find out more about the different aspects of businesses and worker support packages here: https://www.pm.gov.au/media/supporting-australian-workers-and-business
Source: InDaily Business Insight
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Personal income security
The government is temporarily expanding eligibility to income support payments to sole traders and self-employed people, and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight.
This will be paid to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
Find out more about the support available
Go to https://www.dss.gov.au/about-the-department/coronavirus-information-and-support
Please carefully consider which of these initiatives best suit your business needs at this time. We strongly suggest that you consult with your accountant and/or financial advisor.
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$1 Billion Tourism Fund - Industry position on the long distance, tour and charter sector
Josh Frydenberg has announced a $1 billion fund to support Australia’s tourism sector in the midst of the coronavirus pandemic.
This will include the waiver of certain fees and charges for tourism businesses – go to business.gov.au website for what is on offer.
The BIC supports the tourism fund and as a tourism taskforce member of ACCI, has suggested a number of initiatives and ideas to be presented to governments to assist the long distance, tourism and charter sector of Industry.
This includes putting aside a very significant Australian tourism marketing fund to reignite demand when our borders and flights are reactivated. The government needs to be thinking 6 to 12 months ahead.
In terms of the current situation, anything the government can do to improve cash flow should be the primary focus. There has been some relief in Queensland for example in terms of payroll tax deferral and surely all other states and territories will have to follow.
Suspension rather than deferral would be preferred and Industry and operators are lobbying for suspension wherever we can, such as:
- Suspension of the Road User Charge (RUC) component of fuel excise for buses and coaches. This would mean a full rebate of fuel excise paid for fuel used for the purposes of bus and coach travel as applies to miners and farmers operating off road. Currently fuel excise is 43.2 cents per litre of which buses and coaches and Industry can claim approximately 27.3 cents per litre as a rebate and the difference is the RUC which is currently frozen at 25. 8 cents per litre.
- Suspension or waiving of government fees and charges (mainly state based) such as registration fees and certificates of insurance fees.
- Suspension of road tolls for buses and coaches for an agreed period.
Source: Bus Industry Confederation (BIC)
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Safety matters
Handling of cash
- For intermittent handling of cash, our drivers especially and others who may have to handle the day’s takings, should be encouraged to perform hand hygiene immediately after handling cash (either soap and water or hand sanitizer, whichever is available).
- This means hand sanitizers may need to be available to support this across a range of settings that don’t currently have this.
- For longer periods of cash handling i.e. during a service our drivers should wear gloves while handling cash, and then carefully remove the gloves and perform hand hygiene at the end of the period of cash handling.
Transport providers should:
- Take all the relevant actions recommended by authorities for workplaces etc.
- Consider whether your transport service can be adjusted to increase separation of passengers and avoid queuing.
- Plan ways to reduce in-person contact for passengers and staff.
- Actively encourage sick passengers and staff to stay at home.
- Open windows and adjust air conditioning to increase airflow.
- Ensure the highest hygiene practices amongst all staff.
- Consider using advertising space on the buses for public health messages around COVID-19.
- Keep informed of the developments with the virus and update staff and members of the public with the actions you are taking.
There are no recommendations to stop using public transport at this time.
Source: Bus Industry Confederation
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Insurance advice
Tony La Rocca at SURA Australian Bus and Coach has asked us to pass on a message. If you need any assistance or guidance whatsoever to do with your insurance, please contact Tony (or your broker). You can call Tony on 0499 970 085, or email him at tony.larocca@sura.com.au.
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BIC Employer Guide for COVID-19
The BIC has released an Employer Guide that we strongly recommend you read. Tailored to the bus and coach industry, it provides the usual useful information such as risk precautions, driver and workplace hygiene, and employer obligations.
It also touches on dealing with the psychological impact of COVID-19, and contingency strategies such as changing or scaling down operations.
Please download the guide, or find it on the BIC website.
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Other support and useful links
Financial
- Banks across Australia are providing different support services for businesses suffering financial hardship. Click here for more information and contact details.
Mental health
- Support for mental health and well-being is available from Lifeline (13 11 14) and Beyond Blue (1300 22 4636).
Workplace hygiene and best practice behaviour
Any impact on public transport systems
Links to useful public health or COVID-19 information
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