Financial Support Packages for Covid Affected Businesses
As you may well be aware of, the Government has recently released details of the new financial support for business affected by Covid. Below are a few details outlining the new packages:
A new targeted COVID Support Payment (CSP)
- Viable and ongoing businesses must show a 40% or more drop in revenue.
- The COVID Support Payment will be $4,000 per business plus $400 per full-time employee up to 50 full-time employees.
- Applications for the first payment opened yesterday February 28 2022 and it will be available on a fortnightly basis for six weeks – three payments in total.
More information on this Covid Support Payment can be found here.
Top up loan available under the Small Business Cashflow Scheme (SBCS)
- In February 2022, the Government announced that the SBCS base loan would increase from $10,000 to $20,000. Therefore eligible business are able to drawdown an additional $10,000.
- The repayment period remains at 5 years with the first 2 years being interest free.
- From the first day of year 3, interest will apply at 3% of the remaining loan balance.
More information about the Small Business Cashflow Scheme can be found here.
Other support packages that remain available are:
Leave Support Scheme (LSS)
- The LSS provides a weekly lump sum payment for workers who must self-isolate and cannot work from home. The payment is $600 per week for full-time workers, and $359 per week for part-time workers. Employers and self-employed people are able to apply for LSS on Work and Income’s website.
This link has more information regarding the Leave Support Scheme.
Short-Term Absence Payment (STAP)
- The STAP is a one-off (once per 30 days) payment of $359 for workers who are absent from work due to a COVID-19 test and cannot work from home. Employers and self-employed people are able to apply for STAP on Work and Income’s website.
This link has more information regarding the Short-Term Absence Payment.
As your tax agent we cannot make any applications for these financial support packages on your behalf, however if you have any questions or queries regarding the application process please contact us.