Friday 29 Oct 2021
*

Latest Accounting News
Hot Issues
State and Federal COVID-19 support
ATO extends COVID-19 relief for SMSFs
Treasury consults on increase to charities financial reporting threshold
Greenhouse gas emission by country since 1880
ATO announces STP Phase 2 blanket deferral
Reminder: super changes for the 2021 financial year
Recontributions of COVID-19 early released super
Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
Lockdowns and mental health
Unemployment rate falls to 12-year low
ATO issues warning to first-time investors
World's largest armies 1816 - 2020
Extra 'super' step when hiring new employees
Pitfalls and proposed changes in the use of R&D tax incentives
Government expands SME loan scheme eligibility
COVID-19 disaster payments to be tax-free: Prime Minister Scott Morrison
‘Nowhere to hide’: New gig economy reporting regime set to debut
Hardship priority processing of tax returns
ATO Small Business Newsroom - July / August
Videos and other resources for our clients
‘Mammoth consequences’: ATO’s NALI ruling draws ire from accountants
Superannuation Guarantee Rates Reminder
NSW support measures, plus update for payroll tax.
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
Articles archive
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 2 April - June 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 4 October - December 2001
Government expands SME loan scheme eligibility

 

Businesses that didn’t previously receive JobKeeper will now be eligible for loans of up to $5 million under the scheme, which will be made available through select lenders until 31 December.

 



 


Treasurer Josh Frydenberg on Wednesday announced that the Morrison government will do away with requirements that a business would need to have previously received JobKeeper or be a flood-affected business to be eligible for the SME Recovery Loan Scheme.


Under the scheme, businesses facing sustained economic impact as a result of the pandemic with a turnover of less than $250 million will be able to access loans of up to $5 million over a 10-year term. 


The scheme also includes a government guarantee on 80 per cent of the loan amount, and offers lenders the option to offer borrowers a repayment holiday of up to 24 months. 


Its design also allows for businesses to use the funds to refinance pre-existing debt owed by eligible borrowers, including those from the SME Guarantee Scheme, and can be either unsecured or secured.


Mr Frydenberg said the expanded scheme will allow lenders to continue supporting small Australian businesses at their time of need. 


“The expansion complements other financial support the Commonwealth is offering to businesses impacted by the current COVID‑19 health restrictions,” Mr Frydenberg said.


“The Morrison government will continue to support small businesses as they seek to rebuild, adapt and create jobs on the other side of this crisis.”


The SME Recovery Loan Scheme was rolled out in early 2020 as one of the federal government’s earliest pandemic support packages. 


Its earliest iteration has since been expanded upon and extended to offer loan cap increases, more generous shifts on cost splitting with lenders, and increases in turnover eligibility. 


When it was most recently expanded in March, the scheme was only made available to recipients of JobKeeper payments between 4 January and 28 March, those that applied during the first phase of the scheme, and others that were affected by floods. 


The Morrison government’s March expansion saw the limit of eligible loans rise from $1 million to $5 million under the scheme, as well as a cost split shift which will see the government guarantee a higher portion of the loan. 


The shift saw the government’s 50-50 split with banks shift to an 80-20 split. 


Businesses with a higher turnover benefited, too, as the cap on eligible turnover increases from $50 million to $250 million.


 


 


John Buckley 
26 August 2021 
accountantsdaily.com.au


 




11th-September-2021
        
89 Boronia Road Boronia Vic 3155 Phone: (03) 9762 5400 Fax: (03) 9761 1327