Government announcement related to Post-JobKeeper Stimulus

This article covers the recent announcements from the government and what they could mean for the businesses including Tourism Aviation Network Support, the expanded SME Loan Guarantee Scheme and an extension of the Business Events Grants Program.
The Federal Government has declared various stimulus measures and the extension of some existing measures for the period following the end of the JobKeeper Scheme. The SME Loan Guarantee Scheme will get extended till December 31^st, 2021 even though access to the scheme is restricted to the businesses which were the recipients of JobKeeper payments for the period between January 4^th, 2021 and March 28^th, 2021. This was specifically for the small businesses with a turnover of up to $250 million. Some other basic changes in this scheme include:

 * An increment in the proportion guaranteed by the Government.

·        * Increment in the size of eligible loans from $1 million to $5 million.

·        * The turnover threshold increases from $50 million to $250 million.

·        * Maximum loan terms under the expanded scheme increased to 10 years from 5  years.

·        * Allowing the refinancing of existing loans.

Another main element of the package is aimed at the airline and tourism industries that have been heavily influenced by COVID-19.
As the complete details of such measures have not been released, the headline item is a half-price airline ticket program initially encompassing certain destinations within Australia.

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                        Support for Domestic Tourism

It is designed to boost Australian domestic holiday travel; the TANS program will subsidize 800,000 flights, almost halving the cost of each ticket.
In a statement launching the initiative, PM Scott Morrison referred to this $1.2 billion assistance package as Australia’s “ticket to recovery” and he said that he expected the funds to stimulate the whole travel industry that includes travel agents, tourism operators, and airlines.
The discounts will be provided on tickets to some of the nation’s most iconic holiday spots. The subsidized airfares will be available from April 1^st, 2021.
Minister for Infrastructure, Transport and Regional Development and Deputy Prime Minister are of the view that TANS will act as a catalyst for the tourism and travel industry to revert to pre-pandemic operating capacity.   
To attain this, McCormack highlighted that the TANS package will also give financial assistance to the broader aviation network, with airports getting funds to cover the costs that are associated with ramping up the operations.

                 More access to small business lending

The SME Loan Guarantee Scheme, established in March 2020, was designed to give businesses direct access to loans through a combination of guarantees given by government and banking associations. This scheme has administered 35,000 loans worth more than $3billion.
The second phase expansion will see loan amounts getting increased from a maximum of $1million to $5 million, the government/bank ratio split for guarantees to alter from 50:50 to 80:20.
Moreover, the turnover caps will enhance from $50 million to $250 million and loan terms will get enhanced from 5 to 10 years.
As per the treasurer, the revamped loan scheme has been designed in such a way to assist SMEs “stand on their own feet” as JobKeeper winds up and the economy continues to recover.
Another basic component of the revamped loan scheme is that the loans will be able to refinance existing loans, providing the access to more concessional interest rates and extended loan terms. The rate of interests will be analyzed by the lender but will be capped at 7.5 per cent.
The loans may be used for an extensive range of business activities. The government has not included the purchase of residential property, financial products, lending to an associated entity, purchasing or leasing existing assets that are more than half-way through their effective life.
In additions to the turnover needs, the business is required to have been accessing the JobKeeper scheme between January 4^th and March 28^th of this year to be eligible for the loan.

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Mandatory director ID exposure draft rules also got released

The treasury has released the exposure draft for the implementation of director identification numbers as a part of the Government Plan for the modernization of the management of registers. Under the program, 31 business registers handled by ASIC will be consolidated into a single platform and the directors will be issued with an ID that they will keep forever.
The transitional application period under Corporations Act is April 4^th, 2021 till November 30^th, 2022. The transitional application period under CATSI Act is April 4^th, 2021 to November 30^th, 2023.
The director ID will give the traceability of the director’s relationships across the companies that enable efficient tracking of directors and prevent the usage of fictitious identities.

Conclusion
As a part of this announcement, some of the other existing support programs of the Government established in 2020 were also extended beyond the initial end date.
If you want to know more about the Post JobKeeper stimulus and the Director ID exposure draft rule, you may contact Reliable Bookkeeping Services to avail the professional assistance for you and your business. Our Bookkeepers in Melbourne always ensure to serve you in the best possible way.