The global impact of COVID-19 has already had an unprecedented effect on
businesses and communities in Australia, and right around the world.
The sheer number of individuals directly impacted by the virus continues to
grow every hour. For up to the minute reliable global data on the spread of
the virus, visit the
Johns Hopkins University Coronavirus Resource Centre.
Open access to select supply chain technology
SAP: is currently offering a suite of products to assist businesses facing the unprecedented challenges right now as the impact on the global economy continues. Among the products available are Remote Work Pulse, facilitating organisations supporting their employees with new work environments; SAP Ariba Discovery, helping buyers and suppliers connect quickly and SAP Litmos, inclusive of video based courses designed to help establish best practices for remote work, read more.
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6 Key Actions for PE Fund Managers
MinterEllison: has outlined six steps for fund managers to take into account
during the COVID-19 pandemic. From considering equity funding,
recapitalisation and capital calls, to utilising credit lines and draw down
facilities. The steps also outlines a number of tax relief measures, the
consideration of rent relief, understanding safe harbour and a review of
staffing arrangements and employer obligations, read more.
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Rolling Updates from Australia & New Zealand
EY: has created a rolling content hub, analysing the recent Government announcements and the development of
company directors being granted temporary relief from personal liability
for insolvent trading. Execution of existing plans and how to remain in
control of existing companies is explored; also a panel
discussion dissecting the RBA and the Federal Government’s announcement on the impact on organisations looking to conserve cash in a rapid
downturn, read more.
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Guidance for employers on privacy obligations
Gilbert and Tobin: has released an overview of the statement by the Office
of the Australian Information Commissioner (OAIC) outlining privacy
guidelines that assist government agencies and private sector employers, on
how to keep workplaces safe and handle personal information appropriately
as part of the COVID-19 response, read more.
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Australian businesses report widespread impacts from COVID-19 in March
Australian Bureau of Statistics: In the first of a series of upcoming surveys, the Australian Bureau of Statistics (ABS) reports that approximately half of the Australian businesses surveyed (49%) had experienced an adverse impact as a result of COVID-19 during the mid-March data collection period and 86% of businesses expected to be impacted in future months. The collection period pre-dated the Australian Government’s announcement of Phase 1 Social Distancing Measures.
Adverse impacts were most prevalent in Accommodation & food services with over three quarters of businesses (78%) already reporting impacts and (96%) of businesses reporting that they expected impacts in coming months. Businesses in professional, scientific & technical services (21%), electricity, gas and water supply (34%) and businesses in mining (37%) were the least likely to have been adversely impacted by COVID-19 in the collection period, read more.
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What does COVID-19 mean for the PE & VC Industry?
Over the past few weeks, the COVID-19 global pandemic has put immense stress on every government and business around the world. Public markets have been subjected to extreme volatility as a result of a significant downturn in the economic outlook for most developed markets, including here in Australia.
According to Pitchbook, it is projected that many PE firms globally will have to step-in and prop-up their portfolio companies through the injection of more liquidity, and by reducing exposure to debt where possible. It’s also projected that some firms will be in a position to underwrite deals with lower returns, which may lead to a slow-down in the pipeline of investment opportunities in the short-term.
Expectations have also risen that investors may increase holding periods and retain struggling assets over the medium term through a re-building phase. In all likelihood, exit markets are expected to be quite passive particularly across M&A and IPO channels.
Pitchbook expects that VC firms will be primed to capitalise on current market opportunities with the prediction that VC fundraising will remain strong in the period ahead. A number of LPs have under allocated to VC, which may help in building resilience for this segment of the private capital market. The main issue affecting the completion of fundraising and deals in the current environment is the constraint around in-person meetings, which is crucial to confirming a fund commitment, according to Pitchbook.
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Ecommerce founders look to stem the flow
The founder of Adore Beauty, executive director Kate Morris has created an
exclusive “war room” to support e-commerce business owners through the
economic crisis caused by the COVID-19 outbreak.
The war room set up is a communication platform that operates via Slack,
the group is aimed at only e-commerce business owners not consultants or
advisors. The group includes businesses with online and physical stores and
Amidst such uncertain times, the Adore Beauty team are working on a number
of plans, Morris has said “we are focused firstly on protecting the health
of our team, and secondly on protecting jobs and ensuring the businesses
survival” say Morris.
Meanwhile over at Canva, Melanie Perkins has written an open letter to
Australian business leaders to undertake a pledge called #stopthespread
asking business leaders to take “bold action” in a bid to stem the spread
of the virus. To do this Melanie has encouraged businesses to undertake the
- Commit to social distancing – enforcing working from home and to
discourage unnecessary international and domestic travel.
- Support your team – continue to support your contractors and support
staff, with a lot of people facing significant hardship, now is the time to
- Support local businesses – support local where ever possible, online and
only offline when needed.
- Respect and support frontline workers and first responders – free up
healthcare as we move through the crisis.
- Stop panic buying – only purchase what you need, if you have more than
you need, consider donating.
- Stop sharing misinformation – false advice and fear-mongering can be just
- Be kind – treat one another kindly in this stressful time and stand up
against any discriminatory behaviour.
To read more about the pledge click
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Tips for working remotely
With the number of Australian businesses now enforcing mandatory
work-from-home directives for their staff, many are adapting to the reality
of remote working for an extended, and unknown, period of time. Listed
below are some useful tips to help ensure that your business and your staff
are working effectively and productively from home for an extended period.
the biggest and most important action is communication. It’s best to
over communicate than under communicate. For managers this can include
always checking in with your team to see how they’re going, it doesn’t
have to be work related discussion, even ask your team what new
developments they have heard on the news or what they are planning for
dinner. The single most important thing is to maintain a human
throughout the day, ensure you have a clear set of goals and action
items, this gives them direction, purpose and maintains a level of
trust between the team.
Status updates –
ensure you set boundaries when you are working, set your notifications
off during the hours you are not, and use platforms to show your status
updates to show if you are busy, available or offline.
don’t forget these are unprecedented times for everyone, we are all
learning how to adapt in ever changing situations. Maintaining a level
head and where possible, use technology to communicate and collaborate,
so you can maintain some form of routine and keep fulfilling our day
Manage expectations –
it’s wise to discuss with your manager what your priorities are and how
tasks will be carried out if they require external logistics.
Know thy self –
it can be hard to draw a distinction between home and office when
you’re at home, but to any extent possible, create a space at home that
looks and feels like your office to you.
ensure you do take a break from where you are working, set a timer for
your lunch break and turn off your work notifications. Productivity is
increased by having breaks, or even go for a short walk. Try to
maintain normal work hours, and shut down things when you normally
would leave the office.
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Adversity builds innovation
Some companies are already discovering unique ways to adapt their products and services as they adjust to the new world under COVID-19. In the coming weeks we will be publishing a series of blogs that look at how companies are finding innovation in the midst of adversity, read more.
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Free access given to small businesses
Atlassian: Responding to the sizeable increase of Australians now working from home
and the surge of remote working tools, Atlassian has announced teams of up
to 10 people will now be able to access Jira and Confluence free, in a bid to
help ease the pressure on the small business community.
In addition Atlassian have also compiled a remote work hub which
collates tools like Slack and GSuite to help businesses work remotely,
encouraging the new norm to be more efficient by using the right products
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Tech sector launches business continuity portal
The Australian Industry Information Association (AIIA): has launched an online resource giving free access to business services during the COVID-19 pandemic. The landing page provides information for Australians on services available to meet their specific remote working needs.
The teleworking technologies offered are significant tools for business and government that enable tele and video conferencing, virtual meetings and events. Free offers available on the site include: Telstra, Google, ServiceNow, Cisco, Facebook, Microsoft, Adobe, Salesforce and SAP, read more.
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Bain Risk Assessment of COVID-19 and Actions to Mitigate
Bain & Company: has developed a questionnaire, which includes general questions about your business (e.g., size, industry, geographic focus) and 12 questions specifically on the COVID-19 risks your business is facing. After completing the assessment Bain provides you with a list of mitigating actions generated based on your answers to the questions, read more.
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Cyber security for startups and small businesses with remote working
AustCyber: When staff are working remotely, it’s critical organisations are protected from a cyber attack. Having the means to manage cyber risks, and ensuring suppliers and partners are not exposed is vital. AustCyber has outlined security controls such as multi-factor authentication, automatic updates, backing up, how to stay smart online and a cyber fitness fitness online program, read more.
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Measuring Fair Value in Times of Significant Uncertainty
Duff and Phelps: Alternative asset managers (GPs) and their investors (LPs) have financial reporting requirements, internal management needs (asset allocation, incentive compensation, portfolio construction, etc.) and a fiduciary duty to measure and report investments at “fair value.” Fair value is defined as the “price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”(FASB ASC Topic 820/IFRS 13)
The first quarter public market sell-off and the expanding uncertainty and unknown impact of the coronavirus create a situation where it is more difficult to apply judgment in determining fair value. Yet, fair value must be determined and determined consistently and objectively even in a highly subjective and changing environment, read more.
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Tax and business relief in response to COVID-19
Deloitte: The Australian Government has released various economic stimulus packages and other support measures, this has lead Deloitte to develop Tax Insights, a document designed to provide businesses with a consolidated view of all the relevant government tax and business reliefs introduced to help Australian taxpayers. It also includes the ATO’s administrative positions in respect of certain tax issues that have emerged to date, read more.
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How to help clients in financial distress
The Australian Restructuring Insolvency and Turnaround Association (ARITA): has released a special guide for accountants in public practice that
provides a framework which can be used to assist businesses going through
guide explores the options available for businesses depending on their solvency
status and where to go for specific solvency and turnaround advice.
Importantly, the guide also provides advice on how to navigate the ‘safe
harbour’ laws designed to protect company directors.
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How PE firms can tackle the uncharted territory
McKinsey: A crisis is not necessarily foreign to experienced investors, however the
outbreak of COVD-19 is without question an ‘out of the ordinary’ situation.
The following section includes some helpful tips compiled by McKinsey for businesses about how they can move through these ever-changing times.
Take care of employees
– firms need to take the health of their employees as priority. Many
firms are looking into expanding remote technology with increased
sophistication to VPN and longer help desk technology availability.
Firms are also looking into providing training for employees to ensure
they’re comfortable with the new offsite operating work model.
Maintain the continuation of critical processes
– PE firms should continue to review their investment pipeline,
organise committee discussions and ensure essential processes continue
with the use of video conferencing.
Prioritise the portfolio
– Firms are encouraged to focus on the portfolios that need the most
urgent support. Some portfolio companies in healthcare and retail are
part of the frontline response, providing critical products and
services, thus ensuring their supply chains are operating at peak
performance is imperative. Firms with international supply chains are
increasingly looking at domestic or regional suppliers for critical
parts to continue smooth operations.
Assess investment strategy
– The current market conditions have unquestionably created potential
investments for firms with dry powder, however it is difficult to
determine which of these will be actionable, also as debt finance for
buyouts could be challenging.
Support your limited partners and stakeholders
– Insights are craved by limited partners during uncertain times so
it’s important for general partners to maintain a high level of
communication, give updates on relevant topics and ensure the
credibility and value of risk management processes are in place.
Although it may appear to be too far over the horizon at the moment, once
the peak of the crisis has passed and steps have been taken to stabilise
businesses, portfolio companies can prepare themselves for growth once
more. In previous downturns, many portfolio companies that prepared for the
upturn had success by investing at greater rates than their competitors
once the low point had passed.
Portfolio companies should also look to prepare for M&A. McKinsey
research shows that public companies that outperformed coming out of the
last recession divested underperforming businesses faster than others did
and made acquisitions earlier to facilitate future growth.
The extent of economic damage from COVID-19 is uncertain at this point.
It’s prudent for firms to move quickly and decisively on new strategies to
help alleviate the affects and prepare for recovery in the months ahead, read more.
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Government Announcements - relevant to the private capital industry and portfolio companies
Prime Minister Announces COVID-19 Coordination Commission
Prime Minister, Scott Morrison, has announced the creation of a new National COVID-19 Coordination Commission (NCCC) that will coordinate advice to the Australian Government on actions to anticipate and mitigate the economic and social effects of the global coronavirus pandemic.
The Commission will ensure the Government receives the most comprehensive advice to meet the challenges ahead to cushion the economic impact of the coronavirus and help build a bridge to recovery.
This is about working cooperatively across private-to-private and public-to-private networks to unlock resources, break bottlenecks and fix problems so Australian families, businesses and communities are supported through the challenging months ahead.
Mr Neville Power has been appointed Chairman and brings both high level business expertise and a strong commitment to social issues.
An Executive Board of Commissioners, will advise the Prime Minister on all non-health aspects of the pandemic response. The Board will work in tandem with the Chief Medical Officer (CMO) Dr Brendan Murphy, who continues to lead the Commonwealth’s health response.
The National COVID-19 Commission Executive Board includes leaders across the private and not-for-profit sectors: Mr Greg Combet AM, Ms Jane Halton AO, Mr Paul Little AO, Ms Catherine Tanna and Mr David Thodey AO (Deputy Chair). They will be joined by the Secretaries of the Department of the Prime Minister and Cabinet, Mr Philip Gaetjens and Home Affairs, Mr Mike Pezzullo.
Prime Minister Announces Further Measures on Corona Virus
Prime minister, Scott Morrison, announced further measures to contain the spread of COVID-19 in an announcement on 24 March.
“We will be living with this virus for at least six months, so social distancing measures to slow this virus down must be sustainable for at least that long to protect Australian lives, allow Australia to keep functioning and keep Australians in jobs,” the Prime Minister said in his statement.
The latest advice from the government is for Australians to stay at home, unless shopping for essentials, travelling to and from work – if they cannot work from home – going to school and exercising. New requirements are to keep visitors to your home to a minimum and not to congregate in groups.
So, what does this mean?
Ban on Australians travelling overseas
Australians are banned from travelling overseas with a few exemptions that will be managed by the Australian Border Force. Exemptions will apply to citizens who ordinarily reside overseas, where travel is essential or necessary, where travel is in our national interest, and on compassionate and humanitarian grounds.
Clarification of current measures and new measures - Additional prohibited activities and venues to apply from 11.59pm (local time) 25 March 2020
Food and drink
The following exceptions apply:
Takeaway service and home delivery
Cafés or canteens at hospitals, care homes or schools, prison and military canteens; services providing food or drink to the homeless; workplace canteens can provide takeaway
Delivery and takeaway can remain operational
Auction houses – closed
Real estate auctions and open house inspections - private appointments can be made
Outdoor and indoor markets will be a decision for each state and territory - Food markets will continue to operate in all states and territories
Beauty and personal care services
Hairdressers and barber shops – up to 30 minute appointments allowed and the 1 person per 4 square metre rule applies in the premises
Beauty therapy, tanning, waxing, nail salons, tattoo parlours - closed
Spas and massage parlours - closed
Cinemas, nightclubs – closed
Casinos, gaming or gambling venues – closed
Strip clubs, brothels and sex on premises venues – closed
Amusement parks and arcades – closed
Play centres (indoor and outdoor) – closed
Concert venues, theatre, arenas, auditoriums, stadiums - live streaming of a performance by a small group could be permissible with social distancing observed
Leisure and recreation
Health clubs, fitness centres, yoga, barre and spin facilities, saunas, bathhouses and wellness centres – closed
Social sporting-based activities – closed
Swimming pools – closed
Community and recreation centres – facilities may remain open for the purpose of hosting essential voluntary or public services, such as food banks or homeless services.
Boot camps, personal training operating outside and inside – For outside events, limited to groups of no more than 10 people and social distancing must be exercised.
Hotels, hostels, bed and breakfasts, campsites, caravan parks, and boarding houses will be a decision for each state and territory – excluding permanent residents and workers.
Caravan and camping parks will be a decision for each state and territory – Where people live permanently in caravan parks or are staying in caravan parks as interim abodes where their primary residence is not available, they may continue to do so.
Galleries, museums, national institutions and historic sites – closed
Libraries, community centres, and youth centres – closed
Local government non-essential facilities and services (such as libraries and pools) – closed
Community facilities (such as community halls, clubs, RSLs, PCYCs) – closed
Places of worship, weddings and funerals – Weddings with a maximum attendance of no more than 5
people and where the 1 person per 4 square metre rule applies. Funerals attended by a maximum of no more than 10 people and where the 1 person per 4 square metre rule applies.
ATO launches consumer resources page for COVID-19
The Australian Taxation Office (ATO) has launched a Coronavirus page on its website which provides detailed information on how Australians can access the tax or superannuation measures announced by the Government as part of its economic response to COVID-19.
The measures include:
providing early access to superannuation
helping employers through cash flow assistance
increasing the instant asset write-off to make more businesses eligible
backing business investment by accelerating depreciation deductions.
Further details are available on the ATO’s website. Those requiring immediate assistance can contact the ATO’s Emergency Support Infoline on 1800 806 218.
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Fiscal and Monetary Announcements
To date, fiscal and monetary initiatives of over $200 billion have been
announced. These have largely focused on supporting SMEs. The main business
focused initiatives at the Federal level are:
- Increasing the instant write-off threshold to $150,000
- Applying a 50% deduction upon installation for other assets
- $100,000 payments for SMEs and not-for-profits
- Guarantee of SME loans
- $15 billion support for non-ADI and small ADI lenders
- Wage subsidy of up to $21,000 per apprentice and trainee
- $1 billion for affected regions and communities
- Reducing interest rates and increasing system liquidity
- Various state government initiatives
Further details on these initiatives, and state and territory
announcements, are provided below.
In addition to these, the government has
a temporary increase to the threshold at which creditors can issue a
statutory demand on a company, from $2,000 to $20,000, and the time
companies have to respond to statutory demands they receive. This includes
temporary relief for directors from any personal liability for trading
On 20 March, the Federal Government announced the delay of the Federal
Budget from 12 May to 6 October. This delay is due to it being “extremely
difficult to formulate reliable economic and fiscal estimates over the next
few months” (Federal Treasurer, 20 March). Some states and territories have also delayed their budgets. Without the
need to develop and cost budgets, governments (and government agencies)
should have greater capacity to develop and implement policy responses.
Parliament will not sit again until 11 August 2020. However, the Coalition and Labor have worked together to make available an extra $40 billion which can be spent without parliamentary approval; the typical 'allowance' is $1 billion.
The Federal Government has announced a $189 billion package. Parts of this
package will not officially come into effect until new laws are passed.
Increasing the instant write-off threshold to $150,000
The government is increasing the instant asset write-off threshold from
$30,000 to $150,000 and expanding access to include businesses with
aggregated annual turnover of less than $500 million (up from $50 million).
: This proposal applies from 12 March 2020 until 30 June 2020, for new or
second-hand assets first used, or installed ready for use in this
Applying a 50% deduction upon installation for other assets
The government is introducing a time limited 15-month investment incentive
whereby a deduction of 50% of the cost of an eligible asset on installation
will apply, with existing depreciation rules applying to the balance of the
asset’s cost. This initiative has been termed ’Backing Businesses
Investment’ or BBI.
: Businesses with aggregated turnover below $500 million.
: Assets acquired after announcement and first used or installed by 30 June
$100,000 payment for SMEs and not-for-profits
The Boosting Cash Flow for Employers measure will provide up to $100,000
(tax free) back to business.
: SMEs with aggregated annual turnover under $50 million and that employ
workers will be eligible. Eligibility will generally be based on prior year
Eligible businesses that withhold tax to the ATO on their employees’ salary
and wages will receive a payment equal to 100% of the amount withheld, up
to a maximum payment of $100,000.
Eligible businesses that pay salary and wages will receive a minimum
payment of $20,000, even if they are not required to withhold tax.
: The payment will be available from 28 April 2020. The ATO will deliver
the payment as a credit to the business upon lodgement of their activity
statements. Where this places the business in a refund position, the ATO
will deliver the refund within 14 days.
Quarterly lodgers will be eligible to receive the payment for the quarters
ending March 2020 and June 2020.
SME Guarantee Scheme
The Government will establish the Coronavirus SME Guarantee Scheme which
will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.
The Government will provide eligible lenders with a guarantee for loans
with the following terms:
Maximum total size of loans of $250,000 per borrower.
The loans will be up to three years, with an initial six month
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.
The Government will guarantee up to $20 billion to support $40 billion in
: SMEs with a turnover of up to $50 million will be eligible to receive
: Details on timing has not been provided at this stage.
$15 billion support for non-ADI and small ADI lenders
The Government is providing the Australian Office of Financial Management
(AOFM) with $15 billion to invest in structured finance markets used by
smaller lenders, including non‑Authorised Deposit-Taking Institutions
(Non-ADI) and smaller Authorised Deposit-Taking Institutions (ADI). This
support will be provided by making direct investments in primary market
securitisations by these lenders and in warehouse facilities.
AOFM’s investment will not be limited to residential mortgage backed
securities. AOFM will also be purchasing assets that support small business
(unsecured and secured loans) and consumer lending (including credit cards,
automobiles and personal loans).
Wage subsidy of up to $21,000 per apprentice and trainee
Employers of an apprentice or trainee may be eligible for a wage subsidy of
50% of their wage paid from 1 January 2020 to 30 September 2020, up to
$21,000. Employers will be reimbursed up to a maximum of $21,000, per
eligible apprentice or trainee ($7,000 per quarter).
: The subsidy will be available to small businesses employing fewer than 20
full‑time employees who retain an apprentice or trainee.
Employers of any size and Group Training Organisations that re‑engage an
eligible out‑of‑trade apprentice or trainee will be eligible for the
subsidy. The apprentice or trainee must have been in training with a small
business as at 1 March 2020.
: Employers can register for the subsidy from early April 2020. Final
claims for payment must be lodged by 31 December 2020.
$1 billion for affected regions and communities
The Government has set aside an initial $1 billion allocation to support
those regions and communities that have been disproportionately affected by
the economic impacts of the Coronavirus, including those heavily reliant on
industries such as:
The $1 billion will be provided through existing or newly established
: The Minister for Trade, Tourism and Investment will work with affected
industries and communities to develop recovery plans and measures.
: The $1 billion will be available for distribution through existing or new
mechanisms as soon as practicable.
Additional information is available via the relevant government department
and agencies with consolidated information available via the following
Reduced interest rates and increasing system liquidity
The RBA twice reduced the official interest rate this month. First on
3 March to 0.50%
, then again at an ‘emergency meeting’ on
19 March to 0.25%. These both represent historical lows for Australia.
On 19 March, the RBA also announced initiatives to support system liquidity
and pricing. These were the purchase of government securities (Australian,
state and territory) and the implementation of a Term Funding Facility. The
facility ”will provide funding to ADIs at an interest rate of 25 basis
points, fixed for the term of the funding” (RBA, 19 March). This has been implemented with the aim of:
1) “…reducing the funding costs of ADIs and in turn helping to reduce
interest rates for borrowers”; and
2) Encouraging ADIs to lend “to all businesses, although the incentives are
stronger for small and medium-sized enterprises (SMEs).”
This has been supported by an
announcement by APRA
on 19 March ‘adjusting’ its expectations of ADIs capital – essentially
allowing ADIs to reduce their “substantial capital buffers” through
increasing(/maintaining) their lending.
These initiatives should allow ADIs to maintain their lending to Australian
businesses and households, and at a reduced interest rates. Some banks have
already implemented interest rate cuts (larger than 0.25%) with a focus on
reducing business lending rates.
All state and territory governments have announced stimulus packages
supplementary to the Federal package.
The Queensland government initiatives total $4 billion. Only some details of the planned spending have been released. Detail to date indicate:
- $500 million for interest free loans of up to $250,000 per business
- Two-month refund on payroll tax for small, medium and large businesses
- Three-month payroll tax break
- Six-month payroll tax deferral
- Liquor licensing fees waived for venues forced to close
- $500 rebate on power for sole traders and small to medium businesses.
New South Wales
The NSW government has announced a $3.3 billion package, including:
- A $1 billion 'Working for NSW' fund, which includes $250 million to employ more cleaners in schools
- $750 million for capital works and maintenance of public assets
- $700 million for health services
- $450 million waiver/deferral of payroll tax
- All businesses will receive a three month payroll tax deferral
- Businesses with payrolls of $10 million or less will also received a 3 month waiver
- $80 million waiver of fee and charges for cafes and restaurants
- Deferral of rents for six months for commercial tenants with less than 20 employees in all Government-owned properties
The last state government to announce its package, the Victorian government
has focused initiatives on injecting funds into the Victorian economy
largely via SMEs. Initiatives include:
- $750 million to pay all outstanding supplier invoices within five
- $550 million for full payroll tax refunds for the 2019-20 financial year
to SMEs with payroll of less than $3 million
- $500 million to establish a Business Support Fund which will support the
“hardest hit sectors, including hospitality, tourism, accommodation, arts
and entertainment, and retail”.
- $500 million Working for Victoria Fund will “help workers who have lost
their jobs find new opportunities, including work cleaning public
infrastructure or delivering food”
- Deferring any payroll tax for the first three months of the 2020/21
financial year until 1 January 2021 for the same SME with payroll of less
than $3 million
- Waiving liquor licensing fees for 2020 for affected venues and small
The South Australian government has announced $1 billion in economic support initiatives and set up a 14 member Industry Response and Support Council. The Council includes representatives from business, property, retail, construction and housing to tourism, primary industries, food, wine and hospitality. Details on the $1 billion package remain thin but include:
- A $650 million Jobs Rescue Package
- $350 million focused on 'shovel-ready' infrastructure maintenance
The Tasmanian government has announced a $985 million stimulus package, with many initiatives targeting specific industry or sectors. including:
- Payroll tax liabilities will be waived for hospitality, tourism and seafood industry businesses and for Tasmanian businesses with payrolls less than $5 million
- $50 million in interest free loans for businesses with turnovers less than $10 million
- $50 million allocated to fast track maintenance on public buildings over the next 12 months
- $5,000 grant for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries.
The Western Australian government has announced a $607 million package, including:
- A one-off cash payment of $17,500 to support the retention of workers
- Raising of the payroll tax threshold to $1 million
- The deferral of payroll tax liabilities until the beginning of next financial year.
The ACT government’s $137 million initiatives include:
- Deferring payroll tax for 12 months on businesses with a turnover under
- $20 million for basic public building infrastructure maintenance
- $750 power bill rebate for small businesses
- $622 credit on their commercial rates
- Food and liquor licence fees waived
- Financial support for clubs to retain casual staff.
The Northern Territory government announced a $60 million stimulus package
including a $30 million 'Home Improvement Scheme' and a $20 million
'Business Improvement Scheme'. This includes:
$6,000 grants for homeowner renovations if they spend $2,000
$20,000 for businesses if they spend $10,000 of their own.
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Additional Industry Related Content
GPs ponder early repayments for credit lines as coronavirus threatens liquidity click here.
COVID-19 - Are first time funds off the table? click here.
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