It’s a daunting time for salon owners, with many staring down the barrel of an uncertain few months. While there’s no question that the beauty industry is set to take a hit thanks to the COVID-19 pandemic, the Australian government is confirming plans to help small businesses come out the other side with as little damage to their bottom line as possible. Below are the assistance packages that have been finalised at this point.
Increasing the ‘Instant Asset Write-off’
The government has increased the Instant Asset Write-off to $150,000 (up from $30,000), and has expanded access to include businesses with aggregated annual turnover of less that $500 million. That means that if you have purchased assets to help in the carrying out of your business (such as treatment chairs, scanning machines, or the like) you’re now able to claim an immediate deduction of the cost of that equipment, up to a cost of $150,000 per item.
Boosting cash flow for employers
The payment provides cash flow support to businesses that have a turnover of less than $50 million, and that employ staff. The package provides up to $25,000 to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. Eligibility is based on the previous financial year, and the payment is tax-free. The boost will be benefit an estimated 690,000 businesses employing around 7.8 million people.
Supporting apprentices and trainees
If your salon employs apprentices or trainees, you may be eligible for a wage subsidy of 50 per cent of their wages, paid for a nine-month period from January 1 2020 to September 30 2020. You can register for the subsidy from early April. Salons will be reimbursed to to a maximum of $21,000 per eligible apprentice or trainee. If a salon isn’t able to keep the apprentice employed due to the effects of the pandemic, the subsidy will be available to the new employer.
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