VICTORIA, Australia – With Australia well on its way towards a recession, a cash injection will provide relief for Victorian businesses, especially during the coronavirus outbreak.
As part of the economic survival package worth $1.7 billion announced by Premier Daniel Andrews, small businesses in Victoria will receive cash reimbursements on their payroll tax bills. During the spreading virus affecting the entire country, small Victorian companies will also get relief on their loan repayments for up to six months.
Currently, there are around 24,000 of small businesses in Victoria employing more than 400,000 workers done with paying they payroll taxes worth over $550 million. However, with the recent cash injection package from the government, those taxes will be sent back to businesses starting next Friday.
The economic survival package will be available for all Victorian small businesses with payroll taxes worth $3 million or less. The cash injection hopes to provide most of them the much-needed immediate aid during this health crisis. Companies will get primary support of $23, 000, while some others are looking towards a hefty $113,975 cash package. This initiative can provide small businesses with a lot of savings that can help to keep jobs open for Australian workers.
Aside from the cash support to businesses, Mr Andrews stated that further support from the state government is currently in the works. He further said that there is also a “Working for Victoria” fund worth around $500 million that aims to help people get back into the workforce after losing their jobs due to the ongoing crisis.
Mr Andrews commented that the state government have a lot of work to do in response to the current issues regarding the virus. That includes cleaning and disinfecting as well as providing households and businesses necessary support packages, he said.
The Premier stated that there are countless efforts needed for all Victorians, and it includes to help with their re-employment.
He added that his government heard and taken into account the needs of all Victorians. Right now, they are taking much-needed action and initiatives to help businesses and all their employees work through the crisis.
Mr Andrews also said that the most crucial factor for all businesses at the moment is cash support. It can provide significant savings and inflow for both the business owners and their workers to help them get on the much better side and the opposite of the crisis.
There is already immediate support from the state government for the health system in Victoria worth $537 million. But the $1.7 billion cash injection plan can do so much more for the citizen, especially with the federal Budget facing delays until October because of the spreading virus.
Businesses have been primarily affected by the current health crisis, negatively impacting the economy at the same time. Business owners are facing a quiet buzz.
Joanne Brewer, a café owner in one of the laneways in Melbourne, commented about the lack of customers in her previously busy business. She said she has never seen the café as quiet as it is right now for the last 13 years.
The 47-year-old business owner said that the decreasing number of people going out forced her to make some changes in the café. That includes letting go of some of the staffs and increasing anxiety over where to get funds to pay the next rent.
Ms Brewer commented that she considers her little café as her baby and also her home. With her son also working at the place on weekends, she was devastated to say that she doesn’t have a job for him right now.
With both the federal and the state government making efforts to provide relief for both Australian households and businesses, Ms Brewer is thankful. The café business owner said that she welcomes whatever help she can get from the government to help keep her business afloat during the crisis.
With social distancing enforced due to the virus, Ms Brewer removed a couple of the tables and chairs inside the café to comply with the rules. She also offers customers hand sanitizer.
Another small business owner in Coburg, Melbourne, Rima Kaake, also said that she’s looking forward for the cash relief for small businesses. The stimulus package can help boost her hair salon during this uncertain time.
Ms Kaake said that more people are getting worried about their jobs and where they will get their income. The cash injection from the government will benefit the long-term prospects of her business, she stated.
The business owner also commented that her shop faced a lot of panic bookings from her customers this week. The salon doesn’t get much traffic before, she said, but people are getting haircuts right now ahead of the forthcoming lockdown.
However, Ms Kaake said that she and the staff of the salon want to keep their clients comfortable and calm but also safe from the virus. She noted that they enforce the metre distance between their customers and only allows three of them inside the shop at once. They also regularly sterilize their appliances and tools, she said.
Meanwhile, the big banks in Australia stepped up yesterday following the recent rate cut from the Federal Bank. They now offer options for their business clients to defer loan repayments amid the increasing fears over the virus and a recession.
Anna Bligh, the chairperson of the Australian Banking Association, said that the recent changes from the banks could put back cash worth $8 billion in the pockets of business owners.
She said that the frozen loan repayments option from lenders is a $100 billion chance for small businesses during a time that they require it the most.
Josh Frydenberg, Federal Treasure, also commented that the banks’ initiative to defer loan repayments for six months is a game-changer to a lot of small businesses.
Along with Prime Minister Scott Morrison, Mr Frydenberg expects to announce further relief packages tomorrow. It includes ways to help small business owners get the capital influx quickly.
The expected economic support worth billions of dollars follows the joining forces of the federal government and the Reserve Bank to provide cheaper cash to loan to businesses.