Concerns have been raised that eligibility criteria for the federal government’s $130 billion bailout plan for business is too restrictive and many businesses with spiralling revenue projections could miss out; and with parliament in recess, first payments are unlikely to be available until May at the earliest.
Prime Minister Scott Morrison yesterday announced an unprecedented stimulus package for businesses and not-for-profit operators affected by COVID-19, with wage subsidies of up to $1,500 a fortnight a centrepiece of the plan.
However, criteria that requires businesses to demonstrate that they have already experienced a 30 per cent drop in revenue to be eligible has been criticised for being too restrictive.
RSM director Tracey Dunn described the stimulus as fantastic and unprecedented, but told Business News the Treasury had not yet defined the test parameters around determining reductions in revenue, and how revenue would be defined.
Ms Dunn said information available from Treasury indicated the reduction in revenue will be measured after March 1, and must be relative to a comparative period from a year ago.
“The information available also indicates the employer must have already experienced a reduction in revenue of 30 per cent or more,” she said.
“This may be problematic