As a result of the devastating bushfires which have affected large parts of Australia the Prime Minister announced yesterday that it would provide additional relief to those small businesses in fire affected areas.
The additional relief includes $50,000 tax free in grant funding for those eligible small businesses as well as concessional loans of up to $500,000 for those small businesses that have suffered significant revenue or asset loss.
The loan is designed to restore / replace damaged assets and / or to fund the business’s working capital needs. The loan is capped at 10 years with no repayments required to be made for the first 2 years.
Further, no interest will accrue in the first 2 years of the loan however interest will begin accruing thereafter at half of the 10 year government bond rate.
The ATO has previously announced various tax relief measures which include lodgement and payment deferrals, fast tracking refunds and setting up interest free payment plans. To qualify for these tax relief measures your postcode needs to be identified on the ATO website as a fire affected area.
To find out more please visit the ATO website: https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-detail/Specific-disasters/Bushfires-2019-20.
If you require assistance in determining if you qualify for any of the above new measures please contact Waterford Accountants for an urgent assessment.
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.