COVID-19. What Support is Available to Sole Traders & Small Business?
My business is in hibernation amidst COVID-19, now what?
If you’re a small business owner, sole trader or freelancer facing struggles due to COVID-19, you’re not alone. And there is help that you can potentially draw on. The government has released some helpful financial support to ensure you can stay afloat in these uncertain times.
For the most up to date information it is always best to check the COVID-19 Australian government website, but some key highlights at the time of writing this blog are:
- Help with the payment of your energy bills until 31 July 2020 (check this link for details)
- You may be able to:
- delay payment
- pay your bill off in smaller amounts
- avoid disconnection
- You may be able to:
- The jobkeeper payment support payment will enable any eligible (if your business has lost or will lose +30% in turnover) self-employed person get a wage subsidy regardless of what business structure they use (even if you are a sole trader)
- If eligible, the Government will provide you $1,500 per fortnight per eligible employee (to you if you are a sole trader) until 27 September 2020
- The increased instant asset write-off will help your small business write off more assets (and realise tax deductions) in this tax year
- The Government has lifted this threshold to $150,000 for assets that are either installed or ready for first use by 30 June 2020
- This will help you receive a better tax return and if you have adequate cash flow, it may be a good time to invest in assets for your business
- The Backing Business Investment (BBI) tax support enables businesses to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
- This tax support package will enable businesses to increase deductions in this tax year to improve your business’ cash flows
The nature of the government support package is heavily enabled through your tax return. It is therefore important that you use software such as Sole (which is free until 30 June and for your first month if you sign up after) and talk to your accountant about what you are eligible for.
There are various other support payments and assistance packages available, which you can have a look at in this link. Sole is currently helping small businesses just like yours by having our CA certified accountants look at your business and finances before tax time. All you have to do is sign up for free and give us a bell (leave your name, number and email) at firstname.lastname@example.org and we will be in touch.
Note: Any advice or commentary in this blog is general advice and requires validation from a registered accountant to make sure it is appropriate for you.