POTENTIALLY $100 million could be immediately unlocked to provide a life line for startups, entrepreneurs and emerging companies which are being crippled by the COVID-19 crisis, if applications under the Significant Investor Visa (SIV) program were reopened.

Executive chairman of Atlas Advisors Australia, Guy Hedley called on the Australian Government to give urgent priority to fast-tracking capital flows under the SIV program.

Mr Hedley said there were probably around 40-50 final stage applications under the SIV program that had been stalled since travel restrictions were imposed.

“This could provide up to $100 million in urgently needed funds which could save many startups and emerging companies from closure,” Mr Hedley said.

Since travel restrictions were imposed no visa approvals have been granted enabling these investors to fulfill their complying investment obligations under the SIV program.

Applicants should be permitted to execute their investment obligations while delaying their physical stay in Australia until travel restrictions are lifted, he said.

“An unintended consequence of this is that startups do not have access to money that would otherwise have been available,” Mr Hedley said.

“As a result, the financial health and wellbeing of many Australian start-ups is at stake and unnecessary failures of great entrepreneurial and employment-generating companies could result.”

University-backed investment fund Uniseed and venture capital fund Follow[the]Seed have united with Atlas Advisors Australia, a top SIV fund manager, to call for measures to help startups.

“Reopening approvals under the SIV program would fulfill the program’s original intent to support thin capital markets,” Mr Hedley said.

The COVID-19 crisis follows a serious drop in early stage venture capital investment in recent years.

“Atlas Advisors Australia has allocated more than $40 million to early stage venture capital investors from SIV investors,” Mr Hedley said.

“However, we cannot meet growing demand for early and seed stage ventures who now find themselves heading for the rocks through no fault of their own.

“The Australian Government should harness the opportunity now to support local startups starved of growth capital because of the devastating impact of COVID-19.”

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A SURVEY of Queensland’s resources leaders taken before the impacts of COVID-19 started to unfold found the sector was in a good standing to create an economic buffer in 2020.

Queensland Resources Council chief executive Ian Macfarlane said the State of the Sector report gave hope to the Queensland economy with the sector in a strong position to maintain production and employment.

"The QRC CEO Sentiment Survey in the report found 55 percent of QRC member CEOs expected to increase their workforce, with 20 percent expecting substantial increases of more than a quarter of their workforce (25 percent). Meanwhile, only 15 percent expected a decrease in their workforce over the same period," Mr Macfalrane said. 

“A lot has changed since this survey was taken and the COVID-19 situation continues to evolve, but what it does tell us is the resources sector was performing strongly with future employment intentions very strong.

“The resources sector is taking extraordinary measures to keep their staff, their communities and their state safe.

“QRC and our industry continues to work with all levels of government," he said. "Early on the National Cabinet led by Prime Minister Scott Morrison and Queensland Premier Annastacia Palaszczuk declared our industry as an ‘essential activity’.

“In relation to FIFO (fly-in-fly-out) operations, the Queensland resources sector is working with the State Government to implement protocols to assist with the separation of the community and FIFO workers while in transit. This will ensure the resources sector can continue to deliver its much needed economic benefits to the economy by producing commodities and employing people."

www.qrc.org.au

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s latest support measures designed to see small businesses through the COVID-19 crisis.

Ms Carnell said the economic support package includes: Support for households including casuals, sole-traders, retirees and those on income support; assistance for businesses to keep people in a job; regulatory protection and financial support for businesses to stay in business.

“The Federal Government has listened to the feedback we have provided and responded to the needs of small and family businesses accordingly,” Ms Carnell said.

“In particular, we support the measures extended to sole traders, which make up more than 60 percent of Australia’s business community.

“Importantly, sole traders who experience a significant loss of income, will be eligible for the coronavirus supplement and jobseeker payment which will assist them to continue working for the next six months. 

"The government is providing small and medium sized businesses that employ people with up to $100,000 (minimum payment of $20,000) to assist with outgoings so they can keep their doors open for as long as possible.

“People experiencing financial hardship can now access up to $10,000 of their superannuation this financial year and an extra $10,000 the year after without paying tax," Ms Carnell said.

“The creation of the Coronavirus SME Guarantee Scheme will help businesses gain access to the working capital they need. We support the government’s pledge to guarantee 50 percent of new loans issued by approved lenders.

“Ultimately, this package gives small and family businesses some breathing space until circumstances return to normal, which will play a critical role in their survival and the ability for our economy to bounce back.”

www.asbfeo.gov.au

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THE Federal Government’s second stimulus package contains welcome measures to support the viability businesses, particularly the viability of small businesses, including sole traders, and non-profit-organisations to keep people in jobs.

“We commend the government for its commitment to doing what it takes to see the country through the health and economic shock of Covid-19 and we restate the importance of building and construction as an essential service,” Master Builders Australia CEO Denita Wawn said.

"Economically it's one of the main chances of stimulus measures hitting the ground hard and fast,"she said. 

“Maintaining building and construction activity around the country is one of the most effective ways of injecting money into the economy at this time of crisis. A shutdown on construction sites will have devastating impact on the economy and the well-being of millions of Australians.

"Our industry is already implementing social distancing and risk mitigation policies and we are working collaboratively with trade unions to this end. We will continue to enact measures to safeguard the health of the 1 in 10 Australians employed in our industry and call on governments to keep them in jobs by keeping our industry building,” Ms Wawn said.

www.masterbuilders.com.au

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