Have you been affected by the recent bushfires? Perhaps it wasn’t you directly but someone you know. Research has shown that over half of all Australians have been directly affected by the bushfire horror that unfolded just a month’s time ago, with many suffering health effects.
The economic impact of the bushfire crisis is set to exceed $4.4bn, with significant impact on that farming and tourism industries. But the knife cuts far deeper than the impact on two of our prominent trades. Insurance companies have reported claims equalling $644m had been lodged at the beginning of January, driving what has been a suspected increase in the premiums we all pay in order to keep insurers profitable. An estimated $2.6bn in economic loss was calculated from lost production as a result of the health effects hindering Australians ability to work.
It is extremely important from not only an environmental standpoint but also an economic front to continue rebuilding the affected areas, to support growth in the economy. There are a number of ways in which the Australian Government, the Australian Taxation Office and Banks across the country are offering assistance to individuals and businesses affected by the fires.
Listed below is some of the assistance that is being provided;
Banks
- A deferral loan repayments
- Waiving fees and charges
- Debt consolidation
- Restructuring existing loans free of the usual fees
- Deferring interest payments
- Offering additional finance to help cover cash flow shortages
- Deferring upcoming credit card payments
- Increasing emergency credit card limits
ATO
- Automatic deferrals of payments and lodgments by postcode (deferred until 28 May 2020)
- An exemption from FBT applies for emergency assistance provided by an employer to an employee
- SGC – the ATO cannot vary the contribution due date or waive the SGC on late super guarantee payments, however it will provide an additional support
ASIC and SRO
- Potential waiver or deferral of fees
Insurers
- Consult your advisor – beware of scams!
Government Grants
The National Bushfire Recovery Agency has been established with an initial $2 billion allocation to the National Bushfire Recovery Fund.
The government is providing;
- Disaster Recovery Allowance – short term payment to help if the bushfires affected your income
- Disaster Recovery Payment – a one-off payment $1000 per adult and $400 per child
- Red Cross Emergency Grants – an emergency grant of $5000 for whose primary place of residence has been destroyed or rendered uninhabitable
- Recovery grants of up to $50,000 for eligible small businesses and non-profit organisations
- Concessional loans of up to $500,000 for eligible small businesses
- Grants of up to $75,000 for primary producers affected by bushfires
Once the current scenario stabilises, future business continuity plans and crisis management strategies should be considered.
We encourage those affected to reach out for assistance.
