Government to give $1.2bn to small businesses

The Government has announced it will give $750 million to small business, the first in a series of cash injections to help them grow.

Key points:The Government says it will be providing $750m to small Australian businesses in the first round of government support in four yearsIt says the first $1bn will be for small businesses, the second $750M for a small business that is the owner of more than 50 employees, and the third $1 billion will be allocated to the business’ primary operations and other key activities.

The Government has said it will support small businesses that are the owner’s primary operations or other key operations and it will also be giving $750,000 to a small businesses’ first-time buyer.

It said it was giving $500,000 per year for the first four years to help small businesses get off the ground and the remaining $750million will be distributed in the second and third years.

“Small businesses are essential to the economic and social development of this country, and we are committed to supporting them in their growth and development,” Minister for Small Business Andrew Robb said.

“I am pleased to announce that we will be giving up to $1,000 a month in direct cash assistance for small business for four years starting in 2020.”

These direct cash grants will be administered by the Small Business Australia Office.

“He said the first-ever round of grants would go to businesses in regional Australia and the first recipients of the second round of cash assistance would be the small business owner’s first-timers.”

This will be a round-the-clock grant,” he said.

Mr Robb said he hoped the money would be available to small companies in the next year and the Government would continue to work with the sector to help develop the small businesses market.”

As we have said in the past, we will work with small business owners to ensure their business is competitive and viable in the marketplace,” he told the ABC.”

There will be an increase in the number of small business opportunities and there will be opportunities for all of the businesses in this country to grow.

“He added the Government was also providing the funding to “help ensure we continue to have access to our natural resources and support for our agriculture”.’

No doubt’ it will have a significant impact on small businesses in TasmaniaHowever, the Federal Government said it expected the program would have a “significant impact” on small business in Tasmania.”

The Government’s plan is to provide cash grants of up to a total of $750 000 to small enterprises in Tasmania and the Northern Territory to help these businesses succeed,” Mr Robb said in a statement.”

We recognise that there are challenges in Tasmania, but we will continue to support small business through this program.

“All Tasmanians will benefit from this cash injection.”

Mr Robb noted Tasmania had a population of more, than three million, and it was home to the highest number of people working in jobs of less than 30 hours a week.

“It is vital that all Tasmanians, regardless of their economic background, can access the resources they need to succeed,” he added.

“Tasmania has one of the strongest job market in the country, with a strong labour force and an attractive job market.”

The Government said the program was to be administered in four phases.

In the first phase, the Government will be distributing $750 to businesses that operate in remote and regional areas, with the rest of the money being allocated in the following three years.

In its second phase, a second $1billion grant will be available for businesses that have less than 50 employee owners.

In total, the funding will be given to the economy of more that 10 million small businesses.

The third and fourth phases will support businesses in smaller towns and rural areas.

The Minister said the Government expected the funding would have an “unprecedented impact” and he was confident it would have the “biggest impact” in Tasmania’s regional and remote areas.


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