COVID-19 FIGHTBACK Vital money flows to speed recovery Injection critical for businesses
BILLIONS of dollars in assistance is starting to flow to businesses and not-for-profit groups as part of the Federal Government’s economic response to the coronavirus pandemic.
One Townsville business, registered training organisation Learning Partnerships, has just received tens of thousands of dollars from the Australian Taxation Office.
The business has been eligible for the Boosting Cash Flow for Employers program as well as the 50 per cent wage subsidy for apprentices and trainees.
The initiatives are separate to the Jobkeeper package for which payments are expected to flow next month.
Learning Partnerships owner Miranda Mears said the cash flow payments, which it had received in its bank account this week, had been “really valuable help”.
Its payments came after lodging a quarterly Business Activity Statement this month where it was simply required to tick a box on its form.
“It’s meant that, along with Jobkeeper, we have been able to keep my staff on and have a level of assurance,” Ms Mears said. “You have to register but it’s really just a one-line thing.”
She said small business was often overlooked in assistance programs but the Government was making sound economic decisions to support them.
Under the cash flow payments, the Government is providing up to $100,000 to small and medium-sized businesses and not-for-profit groups, including charities, that employ people. The payments are designed to help businesses’ cash flow so they can keep operating, pay rent, electricity and other bills and retain staff.
The cash flow boost is expected to benefit more than 720,000 businesses and notfor-profits employing 7.8 million people, costing $31.9 billion over the budget forward estimates, while the wage subsidy is expected to cost $1.3 billion in 2019-20 and 2020-21.
Townsville Chamber of Commerce president Michele Falconieri said the cash flow boost would give businesses more confidence to recover and regain ground lost through the impact of closures and job losses caused by the coronavirus pandemic.
Peak group Chamber of Commerce and Industry Queensland said the economic effects of COVID-19 have been devastating, particularly for the small business sector. CCIQ released survey results yesterday showing 17 per cent of businesses had closed, 39 per cent maintained only essential operations, 40 per cent laid off casual staff and/or stood down permanent staff and more than half of those surveyed had a 50 per cent or more decrease in revenue.
After consulting with chambers statewide, CCIQ is recommending SME recovery concessional loan packages, SME grants of $10,000, apprentice and trainee wage subsidies and investment in “shovel ready” maintenance and infrastructure.