What the coronavirus stimulus package will mean for Aussie small businesses
From Aussies doing their grocery shopping to small business owners trying to keep things afloat, the coronavirus has impacted all corners of life in Australia.
And to ease the financial stress, the Federal Government has today announced a stimulus package that’ll provide more than $17.6 billion worth of tax breaks and subsidies to small businesses feeling the pinch.
“Australia is not immune to the global coronavirus challenge but we have already taken steps to prepare for this looming international economic crisis,” said Prime Minister, Scott Morrison.
“The economy needs temporary help right now to bounce back better so the livelihoods of all Australians are protected.”
It’s estimated that the stimulus package will benefit 700,000 small and medium sized businesses and 7.8 million Aussie workers.
What small businesses will receive
Around $6.7 billion will be spent over four years to help businesses stay up and running during the outbreak.
Small businesses with less than 20 employees will receive up to $7,000 each quarter for every currently employed apprentice in the form of wage assistance.
It’s hoped that this will provide wages for up to nine months to help trainees and apprentices remain employed.
Businesses with a turnover of under $50 million will also be granted access to tax-free payments of up to $25,000 in an effort to increase cash flow.
Finally, the government also plans to spend over $700 million to expand the instant asset write-off.
The instant asset write-off is a scheme that allows small businesses to immediately claim deductions on business purchases of up to $30,000, which includes things such as chairs, desks or storage units.
This $30,000 threshold will now be lifted to $150,000 for large businesses with an annual turnover of $500 million.
By doing this, the government is expected to see an increase in interest by small businesses to purchase big-ticket items, such as cars, utes, trucks and equipment.
So if you’re an Aussie looking to safeguard your small business against unforeseen disasters like the coronavirus, we've got four ways to get started.
Compare business loans - rates updated daily
Unsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
Interest Rate
Upfront Fee
Funding speed
from 9%-Within same dayUnsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
- Interest Rate
- from 9%
- Upfront Fee
- -
- Ongoing Fees
- 2.5% establishment fee of the disbursed amount.
- Late payment fee
- $50.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $300,000
- Minimum loan term
- 3 months
- Maximum loan term
- 4 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $60,000
- Application speed
- within 24 hours
- Approval speed
- 2 hours
- Funding speed
- Within same day
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- Early payout options and early repayment discounts are available. Principal-only payout available after 6 months.
- Other restrictions
- Loans above $300,000 must be secured by property.
Invoice Finance
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
Interest Rate
Upfront Fee
Funding speed
0% for the first 60 days, then rates starting from 6%On ApplicationInstant on approvalInvoice Finance
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
- Interest Rate
- 0% for the first 60 days, then rates starting from 6%
- Upfront Fee
- On Application
- Ongoing Fees
- Ongoing service fees apply. Amount is calculated as a percentage of invoices processed.
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $100,000
- Maximum loan amount
- $10,000,000
- Minimum loan term
- 1 months
- Maximum loan term
- -
- Repayment frequency
- -
- Repayment types
- n/a
- Minimum trading period
- 1 year
- Minimum annual turnover
- $1,000,000
- Application speed
- 2 Minutes
- Approval speed
- 24 Hours
- Funding speed
- Instant on approval
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- Complimentary Trade Finance facility available subject to approval. Access to the Octet Supply Chain Platform.
- Other restrictions
- Up to 85% value of unpaid invoices available.
Prospa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Interest Rate
Upfront Fee
Funding speed
Interest rates vary based on risk.3.5%from 24 hoursProspa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
- Interest Rate
- Interest rates vary based on risk.
- Upfront Fee
- 3.5%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $150,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 3 years
- Minimum annual turnover
- $1,000,000
- Application speed
- 10 Minutes
- Approval speed
- Same-day approval
- Funding speed
- from 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Boost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
Interest Rate
Upfront Fee
Funding speed
from 14.00% p.a.Details on applicationFrom 24 hoursBoost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
- Interest Rate
- from 14.00% p.a.
- Upfront Fee
- Details on application
- Ongoing Fees
- $0
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured or Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- -
- Minimum trading period
- 1 year
- Minimum annual turnover
- $120,000
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
- Funding speed
- From 24 hours
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- All industries supported.
- Other restrictions
- Loans up to $100K: No upfront collateral required Loans between $100K to $200K: Borrower must be a property owner Loans over $200K: Borrower must be a property owner, and the loan will be secured
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