COVID-19 is upon us and, by all accounts, its impact will be felt for a while. As a pharmacist, you are at the forefront of assisting people with their healthcare. As a business owner, COVID-19 will have wide-reaching economic impacts on Australian businesses which you need to identify and prepare for.
The Australian Government is providing support to the economy and businesses of a level never seen before. Here is a summary of measures released as of 1 April 2020 which we believe could relate to a retail pharmacy, subject to meeting qualifying criteria and being deemed an eligible business:
- Boosting Cash Flow for Employers
- Temporary cash flow support for small and medium businesses and not-for-profit organisations commencing 28 April 2020
- Tax-free cash boosts of between $20,000 to $100,000
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
- Temporary relief for financially distressed businesses
- Temporary increase threshold at which creditors can issue a statutory demand
- ATO will tailor solutions for owners or directors
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
- Increasing the instant asset write-off
- Instant asset write-off threshold increased to $150,000 for businesses with aggregated turnover of less than $500 million, until 30 June 2020
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
- Backing business investment
- Time-limited 15-month investment incentive (through to 30 June 2021) by accelerating depreciation deductions
- Businesses with a turnover of less than $500 million will be able to deduct 50% of the cost of an eligible asset on installation (existing depreciation rules apply to the balance thereafter)
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
- Supporting apprentices and trainees
- Eligible employers can obtain a wage subsidy of 50% of a trainee’s wage for 9 months from 1 January 2020 to 30 September 2020
- Reimbursed up to a maximum of $21,000 per eligible trainee ($7,000 per quarter)
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
- Support for Coronavirus affected regions and communities
- $1 billion to support regions most significantly affected to assist during outbreak and recovery
- More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Assistance_for_severely_affected_regions_and_sectors.pdf
- Government support for immediate cash flow needs of SMEs
- Government guarantee of 50% to SME lenders
- Exemption from responsible lending obligations for lenders providing credit to existing small business customers
- RBA package to put downward pressure on borrowing costs
- More information: https://treasury.gov.au/sites/default/files/2020-03/Overview-Economic_Response_to_the_Coronavirus_2.pdf
- JobKeeper Payment
- The Government will provide a subsidy of $1,500 per fortnight per eligible employee for a maximum of 6 months from 30 March 2020
- For eligible employers whose turnover has reduced by more than 30% if they have annual turnover of less than $1 billion
- More information https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_3.pdf
We strongly suggest that you refer to the fact sheets in this article for further information, including subsequent updates, at the Federal Treasury’s Economic Response to the Coronavirus microsite: https://treasury.gov.au/coronavirus.
If you have any questions we can help with, please contact Sigma Financial Services* via pharmacy.finance@sigmahealthcare.com.au or call 03 9215 9780.
* This service is available to Sigma First Line customers only. Your privacy is of paramount importance and any discussion is highly confidential.
Disclaimer: The information in this article is of a general nature and should not be deemed to constitute advice from Sigma Healthcare Limited &/or any of its subsidiaries &/or brands &/or representatives &/or staff. Advice should be obtained directly from the relevant Australian Government Departments (Coronavirus Business Liaison Unit – CoronavirusBusinessLiaison@treasury.gov.au) or your own Advisors; Accountant, Bank, Financial Adviser, Solicitor, Lease Negotiator and so forth.
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