Melbourne has gone into Stage 4 Lockdown making it even tougher for business owners to survive, but there are still a few things you can do to help your business. If Stage 4 Lockdown has affected your business, you may now be eligible for the JobKeeper scheme. In addition to JobKeeper, you may also be eligible for The Government’s $10,000 grant for small businesses.
The JobKeeper scheme can be split into three parts;
- JobKeeper 1.0 started in April this year and will run until 28 September 2020.
- JobKeeper 2.0 part 1 will begin on 28 September 2020 and will run until 3 January 2021.
- JobKeeper 2.0 part 2 will begin on 4 January 2021 and will run until 28 March 2021.
If your business has been shut down or found itself in a tough spot during August 2020 due to Stage 4 Lockdown, you will likely be eligible for JobKeeper 1.0. To get into JobKeeper 1.0, you will need to have a 30% minimum reduction in turnover for the month of August 2020 compared to the same month in 2019.
What does that mean?
JobKeeper Payments effectively work on a cashback style system. The employer is expected to pay their employees the amount in advance, which is then credited back to the business by the ATO. This includes casual, part-time and full-time employees. Each employee is entitled to $1,500 per fortnight under JobKeeper 1.0.
For more in depth information on paying your employees’ salaries whilst on JobKeeper, please read our article on salary changes under JobKeeper.
If you get into JobKeeper 1.0 in August, you may be eligible for JobKeeper 1.0 in September as well. JobKeeper 2.0 runs from 28 September 2020 and has changed slightly for the salary amounts paid to employees covered under the scheme.
For more information on the changes occurring to JobKeeper after 28 September 2020, please read our article on JobKeeper 2.0.
$10,000 Grant for small businesses
Another boost your business may be eligible for is the State Government’s $10,000 Business Support Fund. This grant came out earlier this year when the pandemic hit Australia and was a lot harder to access. The Government has now made it easier to access for small businesses in metropolitan Melbourne, Mitchell Shire and regional Victoria. Eligible business within metropolitan Melbourne and Mitchell shire can access a one off $10,000 grant, all other areas of regional Victoria can access a one off $5,000.
An expanded list of guidelines can be found here. Applications for these grants will close on 14 September 2020.
These two support systems can make a huge difference for your business during the lockdown. Contact your accountant or bookkeeper for assistance with applying for the support schemes, or contact Paris Financial, the Small Business Tax Champions for expert advice on your small business.