The support available to individuals and businesses has been constantly evolving and changing. Here’s a summary of where support stands around the country.
From 2 August 2021, the COVID-19 Disaster Payment has increased to a maximum of $750 per week for those who have lost 20 hours of work or more, and $450 for those who have lost between 8 and 20 hours of work. In most cases, the payment now applies from day 1 of a lockdown. In general, you need to be living in, or impacted by Commonwealth declared lockdown to receive the payment although some States have funded an extension of the payment beyond hotspot areas.
Growing your business value
Over the next decade, as the baby boomer bubble of small and medium-sized business owners roll through the system, Australia will experience one of the largest transfers of business wealth in its history. Succession planning is more important than ever. Not just because of the transfer of wealth, but because of the polarising impact of high supply and low demand on the saleable value of a business.
Most business owners have a view of what their business might be worth and the factors that influence business value. The key question then is, what do you need to focus on to enhance business value for a potential buyer? There are four key areas: growth, capacity, profitability and risk.
Growth – buyers will generally pay a premium for a built-in level of growth.
Capacity – provides for both the present and capability to facilitate growth in the future.
Profitability – a history of profits and strong cashflows are normally the two greatest influences on SME business value.
Risk Management – business owners are becoming more sensitive to risk.
Are COVID-19 grants and funding tax-free?
Most people would think that money provided by the Government to support people and businesses during a crisis would be tax-free? Otherwise, it’s like giving money with one hand and then taking it away with the other, isn’t it?
But, the tax laws don’t work like that. To make a payment tax-free, legislation is required to enable it to be classified as exempt income or non-assessable non-exempt income. In general, any income received will be assessable unless the Government has legislated for it to be tax-free.
Read more: Lockdown support update