July 2020 represents a critical time for Australia in relation to the COVID-19 pandemic.
It marks the mid-way point for some of the Government's critical support measures and it was supposed to signal the final stage in restrictions being lifted and the economy pretty much back to a new normal with most businesses reopened and operational. Well that’s what the Prime Minister Scott Morrison had hoped would be the case when he unveiled the governments Roadmap to Recovery back in May.
Unfortunately, July has also seen a significant increase in coronavirus cases especially in Victoria and to a smaller extent in NSW and instead of the economy opening up, some state borders are being tightened and new levels of restrictions are being put in place or considered by various states and territories. Some businesses and sectors appear to be doing OK while others are not.
Jade Truck Loans is staying across the updates especially in regard to what’s available to support businesses like yours and other information that may be of significance to you.
Federal Government Update
As intended, the Federal Government has assessed its key support measures and is updating and extending some programs while introducing new and more targeted measures and programs in response to the evolving economic and health environment.
On 21 July, Prime Minister Scott Morrison and Treasurer Josh Frydenberg delivered the much-anticipated update to the JobKeeper program. Over 900,000 Australian businesses have been utilising this program and it was due to end on 27 September.
The program has now been extended through to the March 2021 quarter but with some key changes:-
- A two-tier payment system rather than the one $1500 per fortnight will be introduced.
- One tier for full-time workers and one tier for part-time workers (working less than 20 hours pw), based on their status at 1 March 2020.
- For full-time workers the payment will reduce from $1500 to $1200 per fortnight from 28 September and then on 1 January to $1000 per fortnight through to end of March 2021.
- For the part-time tier, the payment will reduce from $1500 to $750 per fortnight from 28 September and then on 1 January to $650 per fortnight through to end of March 2021.
- Businesses that are already receiving the JobKeeper payments will need to re-apply and meet the eligibility criteria in order to qualify for the extension.
According to our understanding, the JobKeeper program will not be automatically extended to existing participants. So if you do want to participate beyond the original 27 September deadline, you will need to stay on top of the deadlines to re-apply and know what information and financials will be required to demonstrate your decline in turnover.
Government-backed Loan Scheme
The Federal Government has also extended the government-backed loan scheme for SMEs that was announced in April as part of the coronavirus business support measures. This is not a grant from the government nor a loan arranged through the government. It is essentially the government guaranteeing 50% of approved unsecured loans arranged through approved lenders by eligible businesses.
Known as the Coronavirus Small and Medium Enterprises Guarantee Scheme, the first phase of this measure will expire on 30 September and the government has extended and amended the program for phase 2 which comes into effect on 1 October and will run through to 30 June 2021.
The key changes we note from a truck finance aspect is that the range of purposes for these loans has been expanded from working capital to include investment. The purchase of a truck may be eligible but you will need to check the criteria
These loans are available through 44 lenders and may be arranged through Jade Truck Loans. Speak with a Jade consultant to discuss if your truck purchase and your business may be eligible.
Loan Deferrals Update
Several of our lenders, including those specializing in Cargo Trailer Financing, have provided updates on the situation surrounding loan deferrals. The major banks took the initiative to assist individuals and businesses with loan deferral periods during the coronavirus crisis. As many of these deferral periods approach their end, some lenders are reaching out to clients to discuss transitioning back to regular payments or evaluating the need for an extension.
If you find yourself in this predicament, it's advisable to take a proactive approach. Reach out to your bank to discuss your unique situation and ensure that the necessary arrangements are set in motion.
As we have reported throughout the COVID-19 crisis, individual states and territories have introduced a range of business support measures. In particularly in relation to payroll tax relief. In response to the recent outbreak of new cases in Victoria and the restrictions imposed, Victoria has extended payroll tax deferrals. The deferral now extends though the first half of 20/21 financial year and the offer has been expanded to include businesses with a payroll up to $10 million.
Consult your individual state treasury website for the latest measures and offers available in your region. As for Truck Loan Rates – See How Different Loan Products Compare, we'll keep you updated with critical information as it's announced. If you're considering progressing with your truck purchase plans, feel free to contact us to discuss financing options.
To discuss a cheap truck loan contact Jade Truck Loans on 1300 000 003
DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.