Cash splash re­vealed

5200 Ter­ri­tory busi­nesses ben­e­fit from fed­eral stim­u­lus aid

Sunday Territorian - - NEWS - AN­NIKA SMETHURST

MORE than 750,000 small and medium-sized busi­nesses have re­ceived an av­er­age of $22,900 un­der a gov­ern­ment stim­u­lus scheme to help them hold on to their work­ers dur­ing the pan­demic.

New tax data, pro­vided ex­clu­sively to the Sun­day Ter­ri­to­rian, shows that $17.51 bil­lion has been paid to small and medium-sized busi­nesses across the coun­try to cush­ion the eco­nomic blow of COVID-19.

The stim­u­lus mea­sure, an­nounced in March, meant not­for-profit or­gan­i­sa­tions and firms with a turnover below $50 mil­lion would re­ceive a pay­ment equal to 100 per cent of the amount with­held from their work­ers’ wages, up to a max­i­mum of $100,000.

Un­der the scheme, all el­i­gi­ble busi­nesses that pay in­come tax on their em­ploy­ees’ salaries could re­ceive a min­i­mum pay­ment of $20,000. By link­ing the pay­ments to wage tax with­hold­ings, the gov­ern­ment hoped to en­cour­age busi­nesses to hold on to more of their work­ers.

The lat­est data has re­vealed the av­er­age cash boost paid to NT busi­nesses was $27,700.

In the North­ern Ter­ri­tory, al­most 5200 busi­nesses have ben­e­fited from the scheme, which in­cluded 2756 across Dar­win and Palmer­ston.

Later this year, el­i­gi­ble busi­nesses that have al­ready re­ceived an ini­tial cash boost will re­ceive a sec­ond pay­ment for the June to Septem­ber quar­ter, de­liv­ered in two or four in­stal­ments, de­pend­ing on the re­port­ing pe­riod. The pay­ments are tax-free and flow au­to­mat­i­cally through the Aus­tralian Tax­a­tion Of­fice.

Trea­surer Josh Fry­den­berg said the cash flow boost was a “life­line to many busi­nesses” and came on top of the Job­Keeper pay­ments.

“Our small busi­nesses are the back­bone of the Aus­tralian econ­omy,” he said.

“The Morrison gov­ern­ment will con­tinue to pro­vide the sup­port nec­es­sary to keep busi­nesses in busi­ness and Aus­tralians in jobs through­out the cri­sis.”

The gov­ern­ment ini­tially pre­dicted the scheme would help about 690,000 busi­nesses em­ploy­ing around 7.8 mil­lion peo­ple, and 30,000 not-for­profit char­i­ties.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.