Month: March 2020

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

The state government has unveiled $184 million in initiatives to boost crisis support and provide rent relief for small businesses and not-for-profit groups impacted by COVID-19, while the City of Perth has announced a rent-free period for tenants in city-owned buildings.

The announcements come as Western Australia’s confirmed COVID-19 cases grew by 44, bringing the state’s total to 355 infections.

Lotterywest today unveiled a $159 million COVID-19 Relief Fund, of which $59 million will be immediately available to eligible not for profits and community organisations.

The initial emergency support will cover costs related to demand for critical needs such as food, clothing and shelter.

The funding will also provide financial relief for not-for-profit sports, arts and community organisations experiencing hardship, a result of events cancelled due to coronavirus-related restrictions.

“From now on, every profit Lotterywest makes from jackpots, draws and tickets excluding statutory grants will go directly into a newly created COVID-19 Relief Fund,” Premier Mark McGowan said.

The premier also announced today that not-for-profit groups and small businesses in government-owned properties would not have to pay rent for six months under the latest stimulus response to the coronavirus pandemic.

Mr McGowan said $25 million had been allocated to the