Business SA has welcomed the Federal Government’s announcement today of a second stimulus package worth $66 billion.
The package will allow SA businesses to unlock financial assistance immediately and help retain staff through the COVID-19 crisis.
Under the new package, eligible small businesses will be given a tax-free, cash payment of up to $100,000 to be paid by the Australian Tax Office in April.
The Commonwealth will also guarantee unsecured loans of up to $250,000 with repayments deferred for six months. Importantly, the new stimulus package also contains support for sole traders impacted by the coronavirus who can access a COVID-19 supplement of $550 a fortnight on top of existing Newstart payments.
Business SA CEO, Martin Haese, said while the second stimulus package was a step in the right direction, more assistance would be required to keep businesses operating.
“We welcome the Federal Government’s second stimulus package and their acknowledgement that more economic assistance will be provided – because it will certainly be needed,” Mr Haese said.
“While the $100,000 payment will be helpful for small businesses, for many SMEs the reality is it simply won’t go very far.
“The good news is sole traders and casual staff that have been impacted can now access financial support. This is a significant change and one we warmly welcome.
“We also commend the Federal Government for introducing temporary changes to insolvency laws to protect Company Directors from personal liability for trading while insolvent and relief measures on statutory demands. These measures will provide some comfort to businesses who may be looking at the real possibility of going into administration.
“The unsecured loans will provide another option to access finance for businesses, but we have concerns that many businesses won’t have the confidence to borrow money in the current climate, even with a six month loan holiday.
“We are yet to see any relief measures announced on rent and utilities and this is something we remain hopeful of seeing in the further support packages from either the Federal or State Government.
“We acknowledge things are changing at a rapid rate and Business SA will continue to seek feedback from our members and across all industries around what their needs will be moving forward so that we can continue to provide this feedback to both the State and Federal Governments.
“As the independent and local peak Chamber of Commerce and Industry in South Australia we have been supporting the business community for 181 years. I want to strongly assure the business community we are here to support you through this immense challenge. Together we will get through this.”
For interview requests please contact Lisa Andrews on 0401 579 963