While there’s no new information relating to COVID-19 and business issues, Fuel Accountants would like to remind you of the Wage Subsidy Extension. It’s very similar to the original 12-week subsidy, but will only pay out for 8 weeks. The big difference is in the eligibility criteria.
The original subsidy round required a 30% decline in revenue in any month (or 30 day period) from Jan to June. The extension is a much tighter requirement – (Updated) – you need to show a 40% decline for a continuous 30 day period. This period needs to be in the 40 days before you apply, but no earlier than 10 May 2020, and must be compared to the closest period last year.
It is important that you don’t just go and apply for this second round without proper consideration. It might also be that you should delay your application (they open 10 June, but you don’t have to apply on the first day). You should review your ledger to determine what your revenue was in various 30 day periods. If you numbers are tight you may find that in some 30 day periods you are eligible while in others you are not. You should keep your Xero ledger up to date and check your numbers every day if you are close. Apply IMMEDIATELY if you pass the test (and keep a PDF of those reports).
Find out more about the Wage Subsidy Extension:
Still wondering about the Small Business Cashflow Scheme (SBCS)?
This was announced the other week and is now ready for applications. You can get a 3% loan with no repayments for the first 24 months between $10K and $100K depending on the number of FTE employees.Your accountant can’t apply for you, but can help you if you need it. You apply through your myIR business account. If you were eligible for the Wage Subsidy then you’re probably eligible for the SBCS.
Find out more about the SBCS: