Finance and Insurance FAQs
Supporting the Australian tennis community
COVID-19 has placed significant financial pressures on small businesses within Australia, and in tennis specifically, that means clubs, coaches and tennis centres. We are working closely with Federal and State Governments to identify opportunities to support the community through this challenging time.
Financial support for you or your business may be available through a number of stimulus packages announced by the government. To help you continue to operate your business for as long as possible, we’ve summarised some key points below.
Note that as the situation constantly changes, so too does the information relevant to your business. We’ll do our best to provide necessary updates on the Tennis Australia website.
FINANCIAL SUPPORT PACKAGES AND SCHEMES FOR BUSINESSES
If you run a business (with or without employee’s), you may be eligible to receive economic support from the Federal Government to manage cash flow challenges and retain employees.
Read more information here: https://treasury.gov.au/coronavirus/businesses and see the below information and fact sheets on how you can be supported during this time.
Packages to manage cash flow challenges and help retain employees
Packages are available to help manage cashflow challenges and retain employees.
- Eligible employers that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld. The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements.
- Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
Packages to provide temporary relief for financially distressed businesses
This package lessens the threat of actions that could unnecessarily push an otherwise profitable business into insolvency or bankruptcy and force the winding up of the business during the coronavirus.
- Higher thresholds and more time to respond to creditor demands.
- For example, the minimum amount of debt for a creditor to initiate bankruptcy will increase from 5k to 20k.
- The timeframe for a company to respond to a statutory demand will be extended from 21 days to six months. This is also true for responding to a notice of bankruptcy. This will apply for six months.
- Temporary relief from directors personal liability for trading while insolvent. It will apply for six months.
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
Increasing asset write-off
The instant asset write-off threshold will increase from $30,000 to $150,000.
- Cash flow benefits for businesses will be provided through the ability to claim immediate deductions on purchased assets up to 150k.
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
Credit support for Coronavirus affected SME
Improved accessibility of credit for Small to Medium Enterprises (SME) will assist in cash flow.
- The Federal Government will provide a guarantee of 50% to SME lenders for new unsecured loans to be used for working capital, enhancing lenders’ willingness and ability to provide credit.
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf
FINANCIAL SUPPORT FOR SOLE TRADERS AND CASUALS
Financial support for you may be available through a number of packages announced by the government. To find out more information please visit:
Income support for individuals affected
The Government is temporarily increasing and accelerating income support by expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement.
- Permanent employees who are stood down or lose their employment may be eligible to access Jobseeker Payment and Youth Allowance Jobseeker criteria will provide payment
- Anyone who is eligible will also receive an additional Coronavirus supplement at the full rate of $550 per fortnight
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
- To sign in or register for this support visit: https://www.servicesaustralia.gov.au/individuals
Early access to your Superannuation
This assistance allows for those significantly financially affected by the Coronavirus, to apply to have a portion of their superannuation released. Eligibility includes:
- If you were made redundant
- If your revenue as a Sole Trader was affected by more than 20 percent
- If your working hours were impacted by more than 20 percent
- Fact sheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf
FINANCIAL INFORMATION PAGES
COVID-19 be Money Smart
This page: https://moneysmart.gov.au/covid-19-be-moneysmart provides advice on dealing with challenging times, making financial decisions can feel overwhelming. There’s support and services available to help you.
Are coaches insured for loss of income?
Generally speaking, coaches are only covered for loss of income if it occurs because of injury while performing tennis related activities. It is unlikely that loss of income arising or flowing from the COVID-19 pandemic would be covered under the National Insurance Program.
*Please note that this is a guideline only. If you believe your circumstances are different and you may be eligible for cover or compensation, please contact Marsh on the below details.
Phone: 1300 130 373
Email: [email protected]
Sport Australia is currently assessing what the impact of online learning and extended pupil free days in many jurisdictions will have on the implementation of Sporting Schools for Term 2. We will continue to provide information as it becomes available.