Businesses across the country (and the world) are finding ways to adapt as best they can to this unprecedented pandemic. Some transport businesses are thriving and moving those essential goods and services that are in high demand, while sadly others are experiencing the slowest period to date on their books.
Businesses who are impacted can apply for the stimulus packages provided by the Australian Government. These present a great opportunity for your business to hopefully thrive again.
Australian Government Grants and Assistance
The Federal Government has provided an array of grants and assistance for your business during the economic downturn associated with COVID-19.
Read below to see which support your business can benefit from:
Boosting Cash Flow
As freight and logistics remain an integral part of the national economy, there is a good chance that your business will still be looking to retain your employees. With the cash flow support by the Government, your small-to-medium business can benefit from tax-free cash flow boosts of between $20,000 and $100,000 for eligible businesses. The Government has said “These payments will be delivered through credits in the activity statement system, when they lodge their activity statements.” The amount you withheld from employee wages for each monthly or quarterly period from March to June 2020 will be returned back in cash flow boosts.
The good news is, there is no application to fill out. It will automatically be credited to your account when you lodge your activity statement.
Increasing the Instant Asset Write-Off
If your business has been looking to invest in a new Hino truck or other equipment assets, this assistance may be of interest to you. Whether it be financing or buying outright, the higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits to businesses with aggregated annual turnover of less than $500 million (up from $50 million), allowing you to immediately deduct purchases of eligible assets each costing $30,000 to $150,000. Hurry, as this will only be applicable until 30 June 2020, and must be in operation.
If you are looking at investing in a new Hino truck before 30 June 2020, we currently have a promotion on our Built to Go models. For a limited time only, you can pick up a true automatic transmission for the price of a manual*, plus drive away with a $500 VISA gift Card^. Find out more.
The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme
To support the flow of credit in the Australian economy, the Government has provided businesses with a guarantee of 50% to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital. “Under the Scheme, the Government will provide a guarantee of 50 per cent to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital.”
This could aid in getting you out of current financial difficulties or be contributed to enhancing your brand presence when this pandemic is over. Have you got the right marketing strategy in place? How is your moving billboard? Need to consider wrapping your truck? This is the time to focus on these areas of improvement and get them right for the future.
This scheme is available until September 2020 and only applies to SME’s including sole traders, with a turnover of up to $50 million. Below are the following loan terms:
• Maximum total size of loans of $250,000 per borrower.
• The loans will be up to 3 years, with an initial 6 month repayment holiday.
• The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
Don’t forget, to control your operating costs and budget going forward, feel free to check out the Hino Capped Price Service calculator here.
Backing Business Investment (BBI)
A new logistics network approach demands a co-ordinated method to interchange between various transport types. In conjunction with the Australian Government and the Transport and Infrastructure Council agreeing on a 20-year National Freight and Supply Chain Strategy, technological breakthroughs have allowed for the decentralisation of logistics hubs and the rise of AI.
If you’re seeking to gain an industry advantage, now is a great time to consider technological investments, with the Government providing a 15 month incentive (ends 30 June 2021) that seeks to deduct 50% off the investment cost of an eligible asset on installation. To be eligible, your business must turnover less than $500 million and it must be a new asset, not previously held by another entity. It also cannot be an asset which has applied depreciation deductions or the instant asset write-off rules.
State-Specific Grants and Assistance
In addition to the national level support, there are grants and assistance that are specifically tailored depending on what state you are in.
Victoria
• Providing one off $10,000 grants for Victorian businesses.
• Land tax relief: A 25% land tax reduction on the property’s 2020 land tax.
• Land tax deferral: Land owners due to pay 2020 land tax that have at least one non-residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020.
To find out more: https://www.sro.vic.gov.au/coronavirus
New South Wales
• Small business support grant: grants of up to $10,000.
• Payroll tax changes i.e. Tax-free threshold increase from $90,000 to $1 million.
• Deferral of rents and payment.
• Licence, registration and permit fee waivers.
• Emergency cleaning stimulus package.
To find out more: https://www.service.nsw.gov.au/campaign/covid-19-help-small-businesses
Queensland
• Low- interest loans of up to $250,000.
• Payroll tax relief which include refunds of payroll tax for 2 months.
• Land tax and banking relief for landlords.
To find out more: https://www.business.qld.gov.au/
Western Australia
• Small business stimulus packages: $17,500 grants with a payroll between $1 - $4 million.
• The $1 million payroll tax threshold will be brought forward by six months to 1 July 2020.
• Rental payments and a range of business licence fees waived.
• Energy bills: One-off credit of $2,500 for Synergy and Horizon Power bill.
• Payroll tax will be waived for four months.
To find out more: https://www.smallbusiness.wa.gov.au/coronavirus
South Australia
• Emergency Cash Grants for Small Businesses: $10,000 grants. Land tax and Payroll tax relief.
To find out more: https://www.treasury.sa.gov.au/Growing-South-Australia/stimulus-measures-to-support-businesses-and-the-community-impacted-by-covid-19
ACT
• Defer your payroll tax liability until September 2020 plus further tax relief options.
• Electricity rebates: Businesses with electricity usage below 100 megawatts per year will receive a rebate of $750, regardless of supplier.
To find out more: https://www.covid19.act.gov.au/economic-support/economic-survival-package/supporting-local-businesses-and-the-economy
Tasmania
• Business Continuity Grant: One-off grants up to $750.
• Business Support Loan Scheme: Loans from 20,000 up to $250,000.
• Business Vehicle Registration Relief Package.
• Small Business Emergency Support Grant Round 2: Grants of $2,500.
• Small Business Hardship Grant: Grants of $15,000.
Northern Territory
• Business Improvement Grant: $10,000 grant.
• Small Business Survival Fund.
• Business Hardship Package.
To find out more: https://businessrecovery.nt.gov.au/businesses
Regardless of your business size, your role in the Australian industry cannot be understated. Applying for the necessary grants and support will not only safeguard your business against the adverse impacts of coronavirus, but will also fuel future growth opportunities.
There are a number of additional Government packages i.e. JobKeeper Payment, which might be of benefit. To further review these stimulus packages, please visit here.
During this unprecedented time, there are likely to be a number of changes with stimulus packages. Make sure you continue to monitor or have a financial adviser on hand to ensure you take advantage.
Continue to stay safe and implement safe work practices.