News

Message from the RDA Logan & Redlands Chair

Gary Hardgrave 720I hope this finds you and those near to you in good spirits and health.

In early March 2020, I was visiting businesses on the Southern Moreton Bay Islands. I am sure each of you was equally busy and focused in your professional and personal lives. It is now a different world and one your RDA has a role in taking forward. It is testing and confronting, but I believe we will get through the current challenges and emerge in a better place.

On Thursday 19 March 2020 RDAs from across Australia met with the Commonwealth Government to discuss its response to COVID-19 and the potential impacts that the virus may have on our regions.

Following this meeting and on an ongoing basis, the Department of Infrastructure, Transport, Regional Development and Communications will be hosting regular teleconference sessions with RDAs to obtain feedback about the impacts of COVID-19 in the regions and inform the Government’s response.

The agenda for each of the meetings is as follows:

  1. What’s happening on the ground?
  2. What impact are government interventions having (positive and negative)?
  3. What more can be done by government or others?
  4. Real life examples of specific impacts on businesses, industries, community groups and local people, supported with data and potential solutions.

Your RDA would welcome any contribution from the Logan and Redlands community to be used to feed into the above arrangements along with information already being provided by Councils, Chambers of Commerce and community organisations.

While the RDA Springwood office has been closed, staff are working from home. Any contributions can be sent to the RDA at . We are keen to receive information and suggestions from businesses and individuals from the Logan and Redlands Region.

The Hon. Gary Hardgrave
Chair
Regional Development Australia Logan & Redlands


COVID-19 Update: Assistance available to small businesses


From Senator the Hon Michaelia Cash, Minister for Employment, Skills, Small and Family Business 

Today the Government has announced a second set of economic responses which, combined with our previous actions, total $189 billion across the forward estimates, representing 9.7 per cent of annual GDP.

To find out more, please go to www.australia.gov.au

These fact sheets have been updated following today’s further announcements.

The Morrison Government also recognises a significant number of sole traders and Australians who are self-employed have had their income reduced as a result of the COVID-19 pandemic. The Government has announced an expansion to the eligibility to the Job Seeker Payment to support sole traders and the self-employed.

To view the media release in full, please click here.

The Government is also allowing sole traders who have seen their hours of work or income fall 20% or more as a result of COVID-19 to access their superannuation capped at $10,000 this financial year and a further $10,000 next financial year. The withdrawals will be tax free.

Please also go to www.australia.gov.au to view all the latest COVID-19 news, updates and advice from Australian Government Agencies.


Further update on assistance for businesses


From Senator the Hon Michaelia Cash, Minister for Employment, Skills, Small and Family Business 

Please find below a further update on the assistance for businesses as a result of the impacts of COVID-19.

Summary

The Government will today announce a second stage of measures to keep businesses in business and to keep workers in jobs. This stage of measures is squarely focused on getting businesses and their workers through to the other side of this crisis.

The measures include:

  • A wage subsidy for small and medium businesses to save jobs; and
  • A guarantee on loans to small and medium businesses so they can keep in business. 


1. Support to Keep Australians in Jobs

We are giving businesses a cash payment of up to $100,000 for the period March 2020 to September 2020. That payment will be worth 100% of the tax those small and medium businesses, with a turnover less than $50 million, are withholding from their employees salary and wages. The payment will be tax free. It will now also be available to eligible charities or other not-for-profit entities.

How the Payment Works

Eligible businesses that withhold tax to the ATO on their employees’ salary and wages – they report it each month or quarter anyway - will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $100,000. Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax. In our first package we announced the cash payment would be 50% of tax withheld worth up to $25,000 in payments or a minimum of $2,000. This announcement builds on the cash flow boost from the first package worth $6.7 billion. This new measure is worth $25.2 billion so in total it’s worth $31.9 billion. The Government expects it will benefit around 690,000 businesses employing around 7.8 million people and 30,000 not-for-profits.

We estimate these businesses employ: 

  • NSW – Around 2.5 million people
  • Vic – Around 2 million people
  • Qld – Around 1.5 million people
  • WA – Around 810,000 people
  • SA – Around 480,000 people
  • TAS – Around 155,000 people
  • NT – Around 63,000 people
  • ACT – Around 115,000 people


2. Supporting Small Business to Get to the Other Side With Loans

We are announcing a new Coronavirus SME Guarantee Scheme to support small and medium business with a turnover less than $50 million. This measure complements the $8 billion worth of measures the banks announced this week to defer repayments for 6 months for small and medium businesses battling the impacts of coronavirus. The Coronavirus SME Guarantee Scheme will be able to be accessed by eligible banks and non-bank lenders.

Details

Under the Scheme, the Commonwealth will guarantee 50%, through the participating banks, of an eligible loan to small and medium enterprise customers that have been impacted by the coronavirus. The Scheme will have the capacity to support lending of $40 billion to small and medium businesses. Loans will be used for working capital purposes and be unsecured and it will be for loans granted within 6 months starting 1 April 2020. The Scheme will apply to new or existing customers of banks and non-bank lenders. Lenders will not be charged a fee for accessing the Scheme. It will be repayment free for 6 months. The maximum loan will be $250,000 for a term up to 3 years. It will not apply to re-financing of existing customers. Those already have existing loans that will benefit from the ABA announcement. Through this measure, the Government is offering to guarantee $20 billion. The Australian banking sector announced on 19 March 2020 significant measures – that many individual banks went further than – to support existing loans. Click here for more info.

Today’s announcement also follows the announcement by the Government on 19 March 2020, together with the Reserve Bank, to inject more than $100 billion into the Australia’s financial system.

Please click here for the Government’s release and here for the Reserve Bank’s release.


$17.6 billion stimulus package to address COVID-19 impacts - assistance available to small business


Letter to Small Business from Senator the Hon Michaelia Cash, Minister for Employment, Skills, Small and Family Business 

COVID-19 is having a significant impact on the Australian economy.

The Government has moved quickly to put in place health measures to protect the Australian community from this complex and rapidly evolving challenge.

The Government has announced an initial $17.6 billion stimulus package designed to keep businesses in business and Australians in jobs.

The Prime Minister has made it clear that the stimulus package is targeted, measured and scalable.

As part of this initial package, measures for small and family businesses include:


$6.7 billion measure Boosting Cash Flow for Employers

Tax free payments of between $2,000 and $25,000 to eligible business with a turnover of under $50 million, to provide temporary cash flow support to businesses that employ staff.

This will work by giving eligible businesses that withhold tax to the ATO on their employees’ salary and wages receiving a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000.

Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.

This measure will benefit around 690,000 businesses employing around 7.8 million people.


$1.3 billion measure Supporting Apprentices and Trainees

Employers of apprentices and trainees who employ less than 20 full-time staff can apply for a wage subsidy of 50 per cent, of up to $7,000 per quarter, for each trainee or apprentice they employ.

This applies to trainee and apprentice wages paid for the period from 1 January 2020 to 30 September 2020 up to a maximum of $21,000 per eligible apprentice or trainee.

This will support up to 70,000 small businesses and around 117,000 apprentices.


Increasing the Instant Asset Write-Off

We are increasing the instant asset write off threshold from $30,000 to $150,000, and expanding access to businesses with aggregated annual turnover of less than $500 million until 30 June 2020.


Backing Business Investment

Businesses with a turnover of less than $500 million can, until 30 June 2021, deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. This is our first major step in responding to the challenges we face. As our Prime Minister said:

“….we will continue to monitor events as we go forward. But we've, we got ahead of this early. We've worked very hard to stay ahead and that challenge grows each and every day....I believe very strongly that [Australians] will support our decision to actually make this stimulus the priority at this time for the Australian economy, because it's about their jobs, their livelihoods, and it's also about their future, because on the other side of this, we will bounce back stronger.”

If you require further information on any of these measures it is available at www.business.gov.au


Latest report to the region available now

Our latest Report to the Region for October to December 2019 is on the website now.

Find out what's been happening around the Logan and Redlands region, including updates on:

  • 2019 RDA National Forum
  • SEQ City Deal
  • Inland Rail Community Consultative Committee
  • 2032 South East Queensland Olympic Bid
  • 2031 Visitor Economy Strategy
  • Queensland's first 100% electric delivery truck (launched in our region)
  • Redlands Business and Retails Awards
  • Minjerribah Futures
  • And more!

Click here to view the report.