Support for businesses affected by the coronavirus outbreak is being ramped up across the country to keep people in jobs and businesses operational during the unprecedented public health response.
Extraordinary measures are being put in place to support Australian households and businesses during the coronavirus outbreak.
This week the Federal Government announced a $130 billion direct wage subsidy program to help business retain employees who may have been retrenched or stood down, or where the coronavirus outbreak was having a significant impact on their turnover.
Up to six million Australian workers will be covered by the scheme which provides a flat $1500 per fortnight payment before tax for full time, part time and casual employees (with more than 12 months service).
The wage subsidy will be available to businesses who have suffered a thirty per cent or more decline in turnover due to the coronavirus, or a fifty per cent drop for businesses with more than $1 billion in turnover.
The wage subsidy will be paid from 30 March for a period of up to six months.
The scheme will need to be legislated and businesses are encouraged to register their interest online with the ATO. An information sheet for employers is also available from the Treasury website.
The JobKeeper program is in addition to previously announced measures to help business cash flow and liquidity during the current crisis.
Australia’s banks are also offering a six-month deferral of loans for business customers.
Businesses with total business loan facilities of up to $10 million will be able to defer repayments for loans attached to their business for six months.
During the six-month period, banks have also agreed not to enforce terms for non-financial breaches of the loan contract, such as changes in valuations.
“Banks are expanding their support to an extra 30,000 thousand businesses by raising the threshold of those who qualify for the six-month deferral of loan repayments from $3 million to up to $10 million in total loan facilities,” explains Australian Banking Association CEO, Anna Bligh.
The measures apply to commercial landlords of properties such as local shopping centres, pubs, clubs and restaurants, who must agree not to terminate leases or evict current tenants for rent arrears due to COVID19 in order to access support.
“Commercial landlords want to do the right thing by their tenants and have a strong interest in helping them through this crisis,” says Ken Morrison, chief executive of the Property Council.
“This relief will help landlords keep tenants and their businesses in place so that when they can re-open or return to more normal operations, they come from a stronger position.”
Morrison notes that larger commercial landlords also source debt from a range of onshore and offshore lenders, which demands a “closer look at the extent of the benefit of the measures being supported by Australian banks”.
The Property Council also welcomed the decision by the National Cabinet to introduce a six-month moratorium on commercial and residential evictions.
“It’s a sensible, fair measure and one that we have said should be taken,” Morrison says.
There is more work to be done, Morrison adds, including in the area of land tax and rate relief for commercial property owners which the Property Council will continue to pursue with state and territory governments.
Morrison says the Property Council is on the front foot with governments on the implementation of the key principles that National Cabinet has agreed to deliver commercial and residential tenancy relief.
“We absolutely recognize that everyone has a role to play in supporting Australian businesses and the community during this extremely challenging period,” Morrison concludes.