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My small business survival summary

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Connections and links to Government and non-Government support for sole traders and small businesses in Australia during COVID-19.
(Please note the data and links are valid as of 23 March 2020)

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My small business survival summary

  1. 1. START HERE: Where can you seek support? Step 1: Choose the challenge you're experiencing Paying salaries Paying rent Step 2: Go to corresponding colour coded section for more info & links. Loans Paying Utilities Paying suppliers Insurance Income Paying fee's Financial distress Assets Mental Health Legal & Regulatory In summary For further information and eligibility… In summary For further information and eligibility… In summary For further information and eligibility… 1. Cash flow Assistance (for employers) Employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000. https://treasury.gov.au/sites/default/files/2020- 03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf 1. Deferring business loan repayments Automatically deferring Better Business Loan and Asset Finance Equipment Loan principal and interest repayments for eligible small business customers with total lending limits with CBA up to $5 million in April, May and June 2020. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_deferbusloan#defer 1. Rent This is still unfolding at a national level. In the meantime, depending on the state you reside in, and your lease agreement, discussions between tenant and landlords should begin as soon as possible. Also investigate as a tenant if you have “business interruption” cover or if the landlord has “loss of rent” cover that extends to COVID-19. TBC 2. Income Assistance for Sole Traders Income support payments to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months. https://www.business.gov.au/Risk-management/Emergency- management/Coronavirus-information-and-support-for- business/Increased-and-accelerated-income-support 2. Deferring your home loan repayments CBA home loan customers requesting financial assistance during this time will be able to defer their repayments, with interest capitalised, for up to six months. https://www.commbank.com.au/latest/support-for-home- loan-customers.html?ei=cor_deferHL 2. Financial Hardship A complete list with phone numbers of all Australian Banks Financial Hardship teams. https://www.ausbanking.org.au/wp- content/uploads/2020/01/ABA-Financial-Hardship-Teams- Contact-Details.pdf 3. Temporary relief for financially distressed businesses The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. The package also includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis. https://treasury.gov.au/sites/default/files/2020- 03/Fact_sheet- Providing_temporary_relief_for_financially_distressed_busine sses.pdf 3. Access to capital If you're a business with less than $50 million annual turnover, CBA offer an unsecured loan of up to $250,000 with no establishment or account fees, and no repayments required for six months. This links to the Government's SME Loan Guarantee so a majority of financial institutions offer this. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_newloan#new 3. Energy sector If you're unable to pay your bill on time, contact your energy retailer to discuss options on how they can help. Their hardship policy outlines the options available. You may be able to delay payments or pay your bill off in smaller amounts. https://www.energy.gov.au/energy-sector-response-novel- coronavirus-covid-19/information-australian-households 4. Instant asset write off he 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) until 30 June 2020. https://treasury.gov.au/sites/default/files/2020- 03/Fact_Sheet- Delivering_support_for_business_investment.pdf 4. Small Business Loans CBA are reducing their small business loans by 1% across all business loans. This will come into effect from 3 April 2020. Check with your bank what they can offer you. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_BusRates 4. Insurance COVID-19 was declared an insurance catastrophe from 12 March 2020 by the Insurance Council of Australia (ICA). If you have been affected by coronavirus (COVID-19), ICA encourage you to contact your insurance company. For help with the claims process, or if you are unable to contact your insurance company, please call the Insurance Council of Australia disaster hotline on 1800 734 621. 5. Business investment Businesses with a turnover of less than $500 million will be able to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. https://treasury.gov.au/sites/default/files/2020- 03/Fact_Sheet- Delivering_support_for_business_investment.pdf 5. Overdraft repayments CBA are deferring repayments on overdraft products, for 90 days. Again, check with your bank what they can offer you. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_BusRates 5. Legal and Regulatory In light of the global outbreak of Coronavirus (COVID- 19), many businesses are confronted with questions about the legal and regulatory implications. Allens, a leading international law firm, has pulled together their insights on some of the key issues affecting businesses based in Australia, and possible solutions. https://www.allens.com.au/insights- news/insights/2020/03/covid-19/#top 6. Apprentice's and Trainees Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice https://treasury.gov.au/sites/default/files/2020- 03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf 6. Merchant Terminal fees CBA are waiving merchant terminal fees for impacted customers with CommBank merchant terminals, for 90 days. You should speak to your merchant terminal provider and ask what they can do to help duering these times. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_BusRates 6. Mental Health There is no doubt these are testing times so if you need support please reach out. You can visit Lifeline for specific advice on managing mental health during COVID-19. Or contact one of the following free services that are available 24 hours a day, seven days a week. Lifeline: https://www.lifeline.org.au/get- help/topics/mental-health-and-wellbeing-during-the- coronavirus-covid-19-outbreak Mental Health Line – 1800 011 511 Mensline - 1300 789 978 Kids Helpline - 1800 55 1800 Beyondblue - 1300 22 4636 7. SME Loan Guarantee 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 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. Refer to your local lender for more details https://business.gov.au/risk-management/emergency- management/coronavirus-information-and-support-for- business/coronavirus-sme-guarantee-scheme 7. Term deposit early redraw fees CBA are waiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts). Seek advice from your bank depending on your siutation. https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_BusRates 8. Early Access to your Super - sole traders Sole Traders will be able to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from mid-April 2020. https://www.business.gov.au/Risk-management/Emergency- management/Coronavirus-information-and-support-for- business/Early-access-to-superannuation 8. Temporary Excess Products Waiving establishment fees and excess interest on Temporary Excess products https://www.commbank.com.au/latest/coronavirus/business- support.html?ei=cor_BusRates 9. ATO Tax relief The ATO is providing some tax relief options Contact the ATO’s Emergency Support Infoline for businesses on 1800 806 218 for more information or to request this help. Additional state and territory support Each state and territory is responsible for restrictions and essential services. Keep up-to-date with the latest information and advice in your state or territory: https://business.gov.au/risk-management/emergency- management/coronavirus-information-and-support-for- business/coronavirus-state-and-territory-assistance-and- events Additional Support Sole Trader and SME Business Owners Your challenges Where can you seek support? National and State Government support Major Financial Institution support (using CommBank as example (see green section #2 for full list of Aust. banks) 3 1 3 2 14 2 1 2 1 1 3 1 34 4 7 1 3 2 89 9 4 5 6 3 4 56 7 8 2 32 6 7

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