Covid-19 support for taxi drivers – you’re a sole trader

Did you know that Taxi Drivers are Sole Traders?

TAA has been keeping up to date with announcements from the Government and has rounded up the grants and funding available to sole traders and businesses. The following applies to sole traders at the time of publishing (8 April 2020).

TAA recommends you contact your accountant for advice relating to your individual circumstances.

Support available includes:

Small Business Support Fund 
This small business grant of up to $10,000, put forward by the Victorian Government, is to be used towards business running costs, including salaries, utilities and rent. Eligible businesses must have staff, be highly impacted, and have a turnover of more than $75,000 and a payroll of less than $650,000. More information here.

JobKeeper Salary Subsidy 
The Federal Government’s Jobkeeper payment (valid for up to 6 months) is for businesses affected by the COVID-19 crisis - employees of these businesses are to receive $1,500 per fortnight. Businesses eligible include not for profits, charities and sole traders. More information here.

PAYG Refunds 
PAYG refunds of up to $100,000 will be given to all businesses with employees as well as less than $50 million in turnover when they lodge their activity statements. More information here.

Instant Asset Write Off 
Eligible businesses can immediately write off the cost of each asset that costs less than the threshold, and claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use. More information here.

Superannuation Early Release 
The ATO has granted early access to superannuation - up to $10,000 can be retrieved. More information here.

Payroll, Land Tax and Liquor Licensing Fee Relief 
Businesses with annual Victorian taxable wages of up to $3 million will have their payroll tax for the 2019-20 financial year waived. Land owners due to pay 2020 land tax, and who have at least one non-residential property and a taxable landholdings total below $1 million, have the option of deferring their 2020 land tax payment until after 31 December 2020. Liquor licence fees for 2020 will be waived (or refunded). More information here.

Bank Loan Payment Freeze 
Major banks are willing to freeze loan repayments on commercial lending for up to 6 months. Check your banks website for details.

Unsecured Loans (SME Guarantee Scheme) 
The Australian Government will provide a guarantee of 50% to small-medium enterprise (SME) lenders for new unsecured loans to be used for working capital. SMEs with a turnover of up to $50 million are eligible to receive these loans - criteria applies. More information here.

New support packages are being introduced regularly by state and federal governments. Check the business support pages for your state for up to date information.