As the Coronavirus situation continues to evolve each day, individuals and businesses are questioning what long term affects it may have on our financial futures. Emergency financial relief strategies and Government Stimulus packages are available, however there are some further steps that you can take to ease the stress the affects Covid-19 might have on your every day finances.
- Are you paying more than the minimum amount on your home loan? If yes, consider reducing to the minimum repayment amount required by your bank. Freeing up some additional funds might be the breathing space you need to get through any rough patches, plus you may be able to access the additional funds you’ve paid into your account already via redraw.
- Fix Your Interest Rate. With fixed rates dropping to record lows (some as low as 2.19*). Now might be a good time to consider fixing your interest rate and providing some certainty around your monthly loan repayment commitments. Contact us today to find out what competitive fixed rates we have available.
- Pause your repayments. If you’re experiencing financial difficulty and are unable to meet your monthly loan repayments, please contact us. Many banks have some provisions to pause your monthly repayments for 6 months and capitalise the interest.
- Switch to Interest Only repayments. Your bank may allow you to switch your repayment type from Principal & Interest to Interest Only for a set period. However, you need to ensure you make a full assessment on whether this type of repayment will be right for you moving forward given you won’t be making any reduction to your principal loan amount during this time.
- Job Keeper Payment. The Government will provide a historic wage subsidy to around 6 million workers who will receive a flat payment of $1,500 per fortnight through their employer, before tax. The aim is keep more Australians in jobs through the course of the coronavirus outbreak. The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
- Cash Flow Boost. The Government is providing up to $100,000 to eligible small and medium sized businesses, and not-for- profits (including charities) that employ people, with a minimum payment of $20,000. These payments will help businesses’ and not-for-profits’ cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.
- Apprentice Wage Assistance. The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020.
- Instant Asset Write Off Extension. The Government will increase the instant asset write-off threshold for depreciating assets from $30,000 to $150,000 for businesses with an annual turnover of under $500 million.
- SME Guarantee Scheme. The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme will support up to $40 billion of lending to SMEs. Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The Scheme will enhance lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus.
- QLD Jobs Support Loan. These loans are available to assist Queensland businesses and non-profit organisations financially affected to retain employees and maintain their operations. Applications are now open.
- Loan Repayment Deferral. If your business has loan facilities up to $10m, some banks have indicated that business’s can request a 6 month payment deferral for term loans, with interest capitalised.
- Increase to Overdraft facilities. If you have an existing overdraft facility for your business, there may be an option to increase this temporarily for a set period. Contact us today to find out more on what the various banks are offering.