Financial Support for SA Businesses

Small businesses and sole traders dealing with the financial impacts of COVID-19 may be eligible for funding and training from the Good Shepherd South Australian Small Business Recovery Program.

The program is a partnership between Good Shepherd Australia New Zealand and the Department of Human Services.

Small businesses or sole traders with an annual profit of less than $80,000 and impacted by COVID-19 may be eligible for funding and services, including: 

• Grants of up to $1,500 to support business goals
• Up to three hours of personalised business coaching
• A tailored roadmap recovery plan
• Referrals to Good Shepherd’s network of financial wellbeing services and other external services

 

For more information, visit goodshep.org.au/smallbusinesssa

The JobKeeper Payment is an Australian Government support measure to help eligible employers retain their employees throughout this period of business downturn.

Last financial year, businesses significantly impacted by COVID-19 and the associated business restrictions were encouraged to apply for this wage subsidy, allowing them to claim $1,500 per eligible employee, per fortnight.

The scheme has been extended from the initial end date of September 2020 for businesses still able to demonstrate that their turnover is down 30 per cent or more.

From 28 September 2020, the JobKeeper Payment will be $1,200 a fortnight for full-time workers and $750 for part-time workers (<20 hours per fortnight).

From 4 January to 28 March 2021, the JobKeeper Payment will be $1,000 a fortnight for full-time workers and $650 for part-time workers (<20 hours per fortnight).

For more information about the payment and eligibility, visit the Australian Government Treasury website.

The State Government of South Australia may be able to support small business impacted by COVID-19 through the Business and Jobs Support Fund or Community and Jobs Support Fund.

Find out more by visiting Department of Treasury and Finance.
 

If your business or not-for-profit employs staff and has been significantly impacted by COVID-19, you may be eligible to receive a cash boost to help you recover.

Your activity statements must be lodged up to the month or quarter of September 2020, and the cash flow boost will be delivered as credit in the activity statement system.

For more information, eligibility criteria and updates, visit Boosting cashflow for employers.

Payroll tax waiver
Eligible employers will not be required to pay any payroll tax for the months of April to December 2020 (for the return periods of March 2020 to November 2020).
 
If your business meets the criteria of wages below $4 million for 2018-19, you do not need to complete an application, RevenueSA will notify you.
 
For more information, eligibility criteria and updates, visit Payroll tax waiver.
 
Payroll tax deferral
Businesses and business groups with wages above $4 million that can demonstrate they have been significantly impacted by COVID-19 can request a payroll tax deferral until 14 January 2021.
 
Businesses and business groups who previously deferred their payroll tax liabilities but are no longer adversely impacted by COVID-19, will have the option to enter into an extended repayment arrangement.
 
For more information, eligibility criteria and updates, visit Payroll tax deferral.

The Australian Government has partnered with dozens of approved lenders to guarantee 50 per cent of new loans to eligible businesses through the Coronavirus SME Guarantee Scheme.

The scheme is helping small and medium sized businesses (with a turnover of up to $50 million) access crucial funds throughout the COVID-19 pandemic and recovery period.

Recently extended, the second phase of the scheme will be available for loans made until 30 June 2021.

For more information, visit the Australian Government Treasury website.

The instant asset write-off threshold has been increased from $30,000 to $150,000 and extended to include businesses with an annual turnover of less than $500 million.

This threshold will be in place for new or second-hand assets purchased (and installed/ready for use) in the period from 12 March until 31 December 2020.

Talk to your business tax agent to see how the instant asset write-off can benefit your business.

The Commonwealth Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus Supplement to be paid at a rate of $550 per fortnight. This payment period has been recently extended from 25 September 2020 to 31 December 2020.

You’ll automatically get the supplement if you’re getting one of these payments: 

• JobSeeker Payment 
• Youth Allowance for job seekers 
• Parenting Payment 
• Farm Household Allowance 
• Special Benefit 

In addition, you may receive a one-off payment of $750 from the Commonwealth Government and a one-off payment of $500 from the South Australian Government.

The Coronavirus Supplement will be automatically applied to payments from 27 April 2020.

For more information, visit Increased and accelerated income support.
 

This 15-month investment incentive supports business investment and economic growth over the short term by accelerating depreciation deductions.  
 
Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. 

This applies to eligible assets acquired from 12 March 2020 and first used or installed by 30 June 2021. An eligible asset is one that is new and not previously held by another entity (other than as trading stock), and must not be an asset to which an entity has applied depreciation deductions or the instant asset write-off rules.

For more information, visit Backing Business Investment.

Sole traders whose business has been suspended or who have experienced a reduction of turnover of 20 per cent or more due to COVID-19 can access up to $10,000 in 2020-21. 
 
Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments. 
 
Individuals and sole traders can apply for early release of their superannuation from mid-April 2020.

For more information, visit Early Access to Superannuation.

The Australian Government has temporarily increased the minimum threshold for creditors issuing a statutory demand on a company, raising this from $2,000 to $20,000 for 6 months. The statutory time frame for a company to respond has been temporarily extended from 21 days to 6 months, for 6 months.

This change provides temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of COVID-19.

For more information, eligibility criteria and updates, visit Temporary relief for financially distressed businesses.

If you employ an apprentice or trainee, you may be eligible for a wage subsidy to help retain them.

The wage subsidy covers 50 per cent of an apprentice or trainee’s wage paid from 1 January 2020 to 31 March 2021, and is now available to both small and medium-sized businesses.

Any employer (including all small, medium or large businesses and Group Training Organisations) who re-engages an apprentice or trainee displaced from an eligible small or medium business may also be eligible for the subsidy.

For more information, see Supporting apprentices and trainees.

To build the capacity of Registered Training Organisations (RTOs), we have expanded the Building Capability Projects guidelines to include a new category and to make them more flexible to respond to the changing environment during and post COVID-19.
 
RTOs can apply for up to $50,000 for innovation, development and/or research projects that assist in building capability and capacity, share learnings with the VET sector and collaborate closely with industry partners.

Applications are now open. For more information visit our Building Capability Projects webpage or email skills@sa.gov.au to connect with a project consultant about opportunities.

In April 2020, the South Australian Government invested $16 million in the vocational education and training (VET) Market Continuity Package to provide immediate relief to the training sector to ensure the state’s VET market was effectively positioned to support industry skill demand in the COVID-19 economic recovery phase.

This first phase of support has concluded. Effective from 24 July 2020, training providers contracted with the Department of Innovation and Skills (DIS) which are experiencing continuing impacts from COVID-19 can apply for Market Continuity Support up to 30 September 2020. DIS will work with applicants to assess available supports and opportunities on a strictly confidential basis.
 
Market Continuity Support is designed to maintain stability and strong locally based skills supply and will complement the suite of initiatives available to RTOs in South Australia.

For more information, visit the Supporting Skilled Careers website.