Surviving COVID-19: Access business assistance

Article by
Philip Martin
PMCA
September 2020

Practical advice on keeping your business strong

4 minutes

Almost 60% of the Australian economy is driven by small and medium businesses. These are sole traders, partnerships, startups, small shops … essentially, people with ideas, drive and vision.

SMEs are often described as risky endeavours; their future outlook is often painted as gloomy. “30% fail in the first year”, we hear, again and again.

The truth is that 50% of Australian small businesses are more than 10 years old, according to Lloyds Business Brokers. And who are we to argue? We can think of several massive ASX-listed businesses that haven’t lasted that long. The vast majority of SMEs in Australia will survive the current crisis, as long as they take action now.

Help to stay solvent

We’re in the grip of a terrible worldwide economic shock. If you make top-grade surgical masks, congrats – you can stop reading now.

Sadly, though, the truth is that some businesses won’t survive. Even when the worst of the pandemic is behind us, the economic effects will linger for many years. For some business owners, there will simply be no way out.

But for the majority of small and medium-sized businesses, there is a future beyond COVID-19. Income might be down (or might even have stopped altogether), but here in Australia we’re relatively lucky. We have a federal government and a coalition of state leaders who have responded quickly with assistance programs and initiatives.

The JobKeeper program is the highest-profile and most important of these packages. Announced at the end of March 2020, it’s a payment that allows employees to receive payment when they are unable to work due to the impact of COVID-19 on their employer.

For SMEs, this is a very effective way to keep contact with their valued staff, and not lose the skills and expertise they bring to your business.

Other forms of assistance

Assistance doesn’t end with JobKeeper. If you’re an SME operator and haven’t been keeping up, here’s some extra assistance you might qualify for that you, your banker, accountant and creditors will love:

PAYG and LOANS

The government is offering 100% cashback on PAYG withholding for the first 6 months of 2020 – up to $100,000 in total – as well as guaranteeing some new loans written by banks and SME lenders – a move designed to encourage new short-term unsecured loans.

IAWO

The Instant Asset Write-Off threshold (IAWO) allows businesses with an annual turnover of less than $500 million to claim an instant deduction on assets worth less than $150,000 in the year they are purchased.

LENDER NEGATIATIONS

Banks and non-bank lenders are more open than ever to negotiate lower repayment terms. They dislike defaults as much as anyone, and it’s in their long-term interest to have strong, viable business customers.

Of course, they’ll always win in the end – loans still need to be repayed – but if it means survival now, it’s worth some additional cost in the future.

We can help

Here at PMCA we’ve been helping businesses for decades.

Contact us if your business is suffering in the current climate. If your situation is dire, we can help you minimise your personal losses, even while we try to resurrect your business.

And for every other business, we can ensure you are accessing all of the assistance available, while advising you on other strategies to emerge stronger and more competitive than ever.

If you have any questions, feel free to get in touch. We’re happy to help

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained. We are here to help, contact us today:

Philip Martin Chartered Accountant
Phone 1300 744 547 | Web pmca.com.au | Email philip@pmca.com.au
Level 9, 440 Collins Street, Melbourne, Vic 3000

Ready to get on top of your tax and accounting?

Philip Martin can change the culture of your business to ensure independent financial strength.
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If you haven’t already, your very next step is to talk to us at PMCA to make sure you’re getting the assistance you’re entitled to.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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link me.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

link me.