Highlights
- Australian government offers economic life-support to small businesses, sole traders, pensioners
- The government has offered grants to incentivise businesses to keep employees and stay operational
- The government offers cash for welfare recipients
Suresh Verma, a Melbourne-based owner of an Indian restaurant is one of many small business owners who are feeling the financial crunch from coronavirus restrictions that have limited people to the confines of their homes.
With the government further clamping down restaurant services to take-aways only, the 34-year-old says he is struggling to keep the business afloat, pay his employees and keep his household running.
“We opened all day yesterday and all we got was 3 takeaway orders. That is just a patch on what we make in normal circumstances and by no means would cover for daily expenses.
Suresh Verma, Indian restaurant owner. Source: Supplied
“If this goes on for another month or so, many like me would have to shut down their businesses,” says Mr Verma.
Considering the plight of small business owners like Mr Verma, the Australian government has announced a second economic stimulus package worth $66 billion dollars.
The second economic lifeline builds on the initial rescue package worth $17.6 billion, $90 billion from the Reserve Bank of Australia and $15 billion from the government to deliver easier access to finances.
But who is eligible for what’s on offer and how can they claim it?
Manpreet Singh works as an accountant at Dandenong in Melbourne's southeast. Source: SBS Punjabi
The government is offering up to $100,000 in grants to eligible businesses through the Australian Taxation Office.
This booster is available to small and medium-sized businesses with an aggravated turnover of less than $50 million and that employ people. The measure aims at encouraging struggling businesses to retain staff while continuing to pay rent and other bills.
But Mr Singh cautions business owners that they would have to fulfil the criteria to avail these payments.
“The size of the grant is based on tax withheld on employees’ wages and will be calculated automatically from accounts statements of the businesses.
“So, for example, if a business pays $5,000 in PAYG tax on employee wages, it will receive a grant of $10,000 twice, for a total of $20,000.
“But if it’s a relatively bigger business that pays $50,000 or more in PAYG, it will receive the maximum grant of $50,000 for the current period, and again in October, for a total of $100,000, which is a significant booster in these times,” said Mr Singh.
These payments will flow automatically through the ATO and there will be no need to fill any new forms to claim this grant, which will be available from April 28.
In addition, the government is also offering loan guarantees under the SMEs to provide them with working capital to help them stay afloat during the crisis.
The SME Guarantee Scheme, the government has committed to guarantee 50% of new short-term, unsecured loans to these businesses.
Coronavirus Supplement:
صف مردم در یکی از شعبههای سنترلینک در ماه مارچ Source: AAP
The supplement worth $550 per fortnight will be paid to both existing and new recipients of the JobSeeker Payment (previously called Newstart), Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
Tax accountant Manpreet Singh clarified that this payment will be in addition to the payment they receive each fortnight.
“The supplement is on top of the income support payments people receive every fortnight. The government has also waived the asset test and waiting periods to access the payment to make the process faster,” said Mr Singh.
In addition, sole traders and self-employed individuals can also avail this supplement and jobseeker payment.
“Those eligible will have to make a declaration to Centrelink that their business has temporarily shut down or your earnings have substantially reduced as a result of the outbreak.
“Once you have fulfilled the criteria, your amount will be processed by Services Australia automatically.”
Here's how you can claim it:
Simply log in to your myGov account with your email and hit the 'register intention to claim' button. The Centrelink will then reach out to the applicants to take them through the next procedure.
This payment will be paid for six months and will start flowing from April 27. Check your eligibility
‘Pensioners will also benefit’
The government is also providing two separate $750 payments to social security and veteran income support recipients and eligible concession cardholders. Around half of those that benefit are pensioners.
-The first payment will be available to people who are and concession cardholders at any time from 12 March 2020 to 13 April 2020 inclusive.
-The second payment will be available to people who are eligible payment recipients and concession card holders on 10 July 2020.
Please note that those accessing a $550-a-fortnight coronavirus supplement will not receive these payments.
Click on the audio player above to listen to the full interview in Punjabi.
Coronavirus symptoms can range from mild illness to pneumonia, according to the Federal Government's website. Symptoms can include a fever, coughing, sore throat, fatigue and shortness of breath.
If you develop symptoms within 14 days of returning from overseas, you should seek medical attention.
If you don’t have symptoms but you have been in contact with a confirmed COVID-19 case, you should also seek medical attention.
If you believe you may need to get tested, call your doctor, don’t visit. Or contact the national Coronavirus Health Information Hotline on 1800 020 080.
If you are struggling to breathe or experiencing a medical emergency, call 000.
