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12, July, 2021 - News

4 minute Read

Last week in review – COVID support for small businesses

Joseph Daoud

4 minute Read

As Sydney braces itself for a lengthy lockdown, there is some good news, 22 banks, including the Big 4, have announced fresh COVID support for small businesses. This support includes loan repayment deferrals. Small businesses — with debts under $3 million and a turnover of less than $5 million — can apply for repayment deferrals of up to three months, with the deferred period added on to the end of the loan. Both businesses and individuals can also ask the bank for a repayment deferral on their home loan.

This time the banks will assess on a month-to-month basis between the customer and the bank. It’s all being assessed on a case-by-case basis so there is no guarantee that you will be eligible. However, the banks do want to make clear that if you default on your repayments and are eligible for deferral, it will not affect your credit score.

As we mentioned last week, the Federal Government is providing grants to relieve some of the pressure of lockdown. Businesses have access to $5,000-$10,000 and payroll tax deferrals for all employers. The grants will be available to small businesses, sole traders and not-for-profits, that have:

  • A turnover of more than $75,000 but below the payroll tax threshold of $1,200,000
  • Fewer than 20 full-time employees
  • An accountant statement that confirms a loss in revenue for the time- period compared to the same time in July 2019

 

If your business has lost:

  • 70% of their revenue, they are eligible for $10,000.
  • 50% loss, they are eligible for $7,000
  • 30% loss, they are eligible for $5,000.

 

The liquid asset test for COVID disaster payment has also been scrapped as Sydney lockdown extends. Previously only people with less than $10,000 in liquid assets were eligible to access the payments. However, Prime Minister Scott Morrison said that would change from 08/07/2021 for the inner Sydney areas that faced restrictions first, followed by the rest of Greater Sydney by Sunday.

Eligible recipients will receive up to $500 per week for losing 20 hours or more of work, and 325 per week for losing under 20 hours.

Continuing last week’s trend, it looks like the Sydney market is finally slowing down after a crazy few months. Clearance rates have finally dropped below 90% to 72% but this is likely due to the recent COVID outbreak and subsequent lockdown.

And finally, just a friendly reminder that it is tax time. The ATO has let everyone know that COVID payments, such as JobKeeper, will automatically be included in your tax return.

How Much Extra Will Your Mortgage Cost When Interest Rates Rise? – It’s Simple Finance

Despite the RBA holding firm to the 0.10% cash rate, the banks are all saying it will rise soon. This will likely mean that average mortgage rates would rise, meaning that you will likely end up paying more per month. Get in touch with us at It’s Simple Finance to discuss your options should this event occur.

Banks announce fresh COVID support amid lockdowns, including loan repayment deferrals – ABC News

Small businesses — with debts under $3 million and a turnover of less than $5 million — can apply for repayment deferrals of up to three months, with the deferred period added on to the end of the loan. Small businesses could also ask for refunds of their merchant terminal fees for up to three months and a waiving of fees on cash deposit and farm management deposit accounts for the same period. The Commonwealth Bank said that they will be actively contacting eligible businesses.

Sydney auctions: booming housing market loses heat as clearance rate drops – news.com.au

The Sydney lockdown has put a damper on the housing market. Originally, there were 863 auctions scheduled for last week but around 1 in 10 were rescheduled. Other vendors simply cancelled their auctions with the withdrawal rate at 23%, according to CoreLogic. With the homes that did go for auction, the auction clearance rate dropped to 72%. This suggests a robust market but one that has missed the highs from earlier this year.

More Articles.

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June 21, 2022 - Blog
Choosing Between Fixed and Variable Rate Home Loans

Considering the recent interest rate hikes, more than ever, it’s important to consider all options to avoid paying more on your mortgage. Following the RBA’s 50-basis-point hike in the cash rate on 7 June 2022, it is no surprise that many banks increased their rates as well. Australia’s big four already announced that they would […]

Joseph Daoud

5 minute Read

...
June 16, 2022 - Blog
Surviving RBA’s highest rate hike in 22 years

The Reserve Bank of Australia’s highest single-raise cash rate in 22 years leaves everyone thinking, ‘How can I handle this?’ In a statement made by RBA governor, Philip Lowe, the Board decided to increase the interest rate by 50 basis points leading to the cash rate of 0.85%. So, where does this leave you? Here’s […]

Joseph Daoud

6 minute Read

...
May 15, 2022 - News
Price Caps Raised For Home Guarantees

Prime Minister Scott Morrison has just recently declared that the government’s Home Guarantee Scheme will have higher maximum property prices and more available places per year. From July 1, this price upgrade will qualify houses in two out of five (40%) suburbs nationwide for the scheme. This is up from 24.1% according to analysis by […]

Joseph Daoud

3 minute Read

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It's Simple 2022 © Its Simple Pty Ltd. Trading as It’s Simple Finance (Credit Representative 495852) is authorised under Australian Credit Licence 389328. ABN: 22 637 831 157 | ACN: 637 831 157

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