Yesterday, the government finally announced its coronavirus stimulus package, pledging $17.6 billion to boost the economy through things such as tax-free cash for welfare recipients and an extended instant asset write-off.
The government also proudly announced grants of up to $25,000 for any small businesses that are employing staff. But, of course, it’s not quite as simple as the Prime Minister would like to make out.
Stacey Price, founder of Healthy Business Finances, says in theory, the incentive for business owners that have staff is “fabulous”.
However, already people are interpreting it in different ways, “and there’s going to be mass confusion”, she tells SmartCompany.
“Business owners are expecting to receive $25,000. That’s what they read,” she says.
“But it’s based on the tax they pay on the wages, which is reported on the business activity statement, and there are all these extra clauses … People are not going to get $25,000 in their pocket.”
Price says she has already seen conversations in business Facebook groups where business owners are asking when they get their cash. She even saw one entrepreneur celebrating that they would be able to pay off their credit card debt.