Federal government’s post-JobKeeper support package

As announced on 11 March 2021, the federal government will introduce a $1.2 billion support package across the travel and tourism sectors, as well as an extension of its SME Recovery Loan Scheme, once JobKeeper finishes at the end of March.

SME Recovery Loan Scheme

An extension and further expansion to the federal government’s SME Recovery Loan Scheme was announced as part of its targeted support package.

The limit for eligible loans will increase from $1 million to $5 million under the expanded scheme, as well as a cost split change in which the government will guarantee a larger portion of the loan. The government’s original 50-50 split with banks will now shift to an 80-20 split.

Businesses with a higher turnover should benefit as well, as the eligible turnover threshold has increased from $50 million to $250 million.

Loan periods will be extended from five to ten years, with borrowers also given a repayment holiday of up to 24 months on both principal and interest.

Only those who received JobKeeper payments between 4 January 2021 and 28 March 2021 will be eligible for the expanded scheme, as well as those who fell under the loan scheme concessions during the first phase of the program.

The loans will be available from 1 April 2021 until 31 December 2021.

Click here for further information.

Tourism and aviation’s flight path to recovery

As part of the support package to assist airlines, accommodation, hospitality, travel agents and tourism operators, the federal government will subsidise 50% of the costs for 800,000 domestic airfares to 13 tourism-reliant regions across Australia.

The discounts will be based on average airfares and will be available on airline websites between 1 April and 31 July 2021 (subject to final negotiations with airlines). The discounts will apply for travel between May and September 2021.

In addition to this, the package will also include international aviation funding aimed at preserving over 8,000 local jobs, as well as support for airport screening costs and a service assistance support program to alleviate the cost burden associated with training on-the-ground personnel at Australian airports.

Click here for further information.

Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or info@banksgroup.com.au if you have any questions relating to the above.

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