Pub and club operators implemented shut down strategies on the back of the National Cabinet’s resolutions to close ‘non-essential services’ this week.
These are tough times.
Right now, when businesses are shuttered indefinitely, the best thing you can do is embrace the team of professionals around you.
Keep close to your financial adviser, accountant, solicitor and others in your trusted circle.
I've been coaching tenants, owner-occupiers and investors in the hospitality sector in their strategic representations to their banks other lenders.
I know what proposals and structures are being entertained by banks. I’m happy to be a sounding board for your situation. (Having secured finance for investors and tenants throughout Queensland’s pub circuit – as well as being an owner, myself – leaves me well-place to answer any finance-related enquiry you have). I can be contacted direct on 0457 883 700 for advice.
The following is a brief summary of packages and assistance relevant to the needs of hotel operators and investors. This is general and subject to change.
The Queensland Government has introduced fees and charges relief for tourism operators and hospitality providers including:
- waiving application fees for some variations to liquor licences
- waiving registration renewal fees for Inbound Tour Operators
- waiving of daily fees for commercial activity agreements and permits
- deferral of Tourism Lease Rent Payments
- deferrals and returns of payroll tax
Banking Relief Packages – Small Business & Individuals
Banks have committed to an industry-wide relief package to support customers experiencing financial difficulties as a result of COVID-19. Options may differ from lender to lender but include:
- an opportunity to defer scheduled loan repayments (including interest only) on a case-by-case basis
- existing loan rearranging (for example, principal and interest to interest only) with the waiver of establishment fees
- waive early withdrawal fees for customers wishing to withdraw from term deposits and/or Farm Management Deposits
- working capital assistance
- no interest rate increases
For more information on how your bank can help, CLICK HERE for a list of direct bank contacts.
The Federal Government announced a second wave of stimulus measures, bringing the total thus far to $189bn. There may be more injections to follow.
Increasing the instant asset write-off - a threshold increase from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Backing business investment - introduction of a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
Assistance for severely affected regions - There’s $1 billion to support those regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism. Targeted measures will also be developed to further promote domestic tourism. The Australian Tax Office (ATO) is also providing administrative relief for some tax obligations for people affected by the Coronavirus outbreak, on a case-by-case basis.
If you’re needing any assistance in the current environment, don’t hesitate to contact the myself on 0457 883 700.
By Daniel Green,
Managing Director, Green Finance Group
Award-Winning Commercial Finance Broker*
*Loan Market Group’s #1 International Finance broker 2019
*Top Mortgage Brokerage, MPA 2019