Small businesses hit by the bushfire crisis will have access to new grants, interest-free loans and a financial counselling hotline under a support package to be unveiled by the Morrison government.
Small businesses hit by Australia's bushfires will have access to new grants, interest-free loans and financial counselling under a multimillion-dollar support package to be unveiled by the Morrison government.
Prime Minister Scott Morrison will announce on Monday the immediate support for small businesses that have been affected by fires across the country, saying it is critical to get them back on their feet. Treasurer Josh Frydenberg said small businesses were the economic lifeblood of many of the fire-affected areas.The fresh round of grants, worth up to $50,000, will be made available for businesses and organisations that have suffered direct damage or had their bottom line hit by the bushfires. The grants, the number of which is uncapped, will be made under the Disaster Recovery Funding Arrangements, allowing businesses to access the money tax free.Concessional loans – similar to those already announced for drought-stricken farmers – will be given to businesses interest free for 10 years. The loans of up to $500,000 would then come with an interest rate that would be set at 50 per cent of the 10-year government bond rate . Mr Morrison will also announce tax measures to boost the cashflow of small businesses, with taxpayers in affected postcodes to be given an extension until May 28 to lodge and pay business activity statements and income tax returns. Impacted businesses that pay their pay-as-you-go instalments quarterly will also be allowed to claim zero dollars for the December 2019 quarter and receive a refund for any instalments made in the September 2019 quarter. The move comes after the government announced on Sunday a $76 million package to help Australia recover from its unprecedented tourism slump, including new campaigns to be aired locally and overseas. Mr Morrison, who suffered fierce personal criticism for taking a holiday in late December while fires burnt in NSW, said the government would keep listening to small businesses affected by the bushfires to see if there was any further support needed. "We’re listening and acting on the advice of small-business leaders to get more cash into coffers, deliver tax relief, give businesses a single point of contact and expert advice as they rebuild and work together on longer-term recovery plans," Mr Morrison said.The government could not put a figure on the cost of the small-business package because the damage was still being assessed on the ground in areas ravaged by the fires. There are an estimated 192,000 small businesses and sole traders in severely affected areas, but not all of these businesses have been impacted.The government will also commit $3.5 million to create a dedicated single contact point and fund 10 additional financial counsellors with the ability to provide advice to about 100 small businesses a day. The support line will be staffed by trained financial counsellors and provide information on the support available to small businesses in bushfire-affected regions. The new measures come after the government heard last week from small-business groups at a roundtable meeting, which it used to finalise the package. Treasurer Josh Frydenberg said small businesses were the economic lifeblood of many of the affected areas. "This comprehensive response will support impacted small businesses that have been impacted by the fires," he said. As previously announced, from Monday an extra $400 will be given to families for each child aged under 16 if any major asset on a property has been lost or damaged.
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