The COVID-19 crisis has had a significant impact on small and medium-sized enterprises (SMEs). The Government has already introduced a wide range of measures to assist businesses through the crisis, including the wage subsidy scheme, the Business Finance Guarantee scheme (BFGS), and a package of business tax changes. While these measures apply to businesses beyond just SMEs, they provide substantial benefits to this sector.
Note: A BFGS loan must be approved, signed and documented by 30 June 2021 for inclusion in the scheme – however it does not have to be drawn down. For more information including due dates - please contact your bank or a participating lender.
However, more support is needed to boost confidence and help SMEs get through this crisis. In particular, some SMEs are struggling to meet their non-labour related fixed costs, but are not able to take on additional debt. Without further support from the Government, some otherwise viable SMEs may be forced to close down permanently.
The Government has announced a suite of new measures to provide relief for businesses during the COVID-19 pandemic.
- Greater flexibility for taxpayers in respect of statutory tax deadlines.
- Changes to the tax loss continuity rules.
- A tax loss carry-back scheme.
- Measures to support commercial tenants and landlords.
- Further business consultancy support.