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This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Rules 2020.
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This instrument sets rules for who counts as an SME for the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package). It defines SME status by whether an entity carries on a business or is a non‑profit and has annual turnover below $250 million, measured using specified income categories and a two‑year lookback.
It matters because it determines which entities can access the government lending guarantee and which accounting and eligibility rules they must meet.
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Direct links to the current provisions in Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Rules 2020.
This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Rules 2020.
This instrument is made under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
In this instrument:
Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
annual turnover has the meaning given by subsection 5(2).
business has the same meaning as in the Income Tax Assessment Act 1997.
entity has the same meaning as in the Income Tax Assessment Act 1997.
non‑profit body has the same meaning as in section 23‑15 of the A New Tax System (Goods and Services Tax) Act 1999.
Note: The term non‑profit body is not defined in the A New Tax System (Goods and Services Tax) Act 1999. However, this definition ensures that the meaning of the term in this instrument does not diverge from the meaning of the term in section 23‑15 of that Act.
(1) For the purposes of the definition of SME entity in section 4 of the Act, an entity is an SME entity at a time in a financial year (the current year) if: (a) the entity carries on a business in the current year, or is a non‑profit body during the current year; and (b) one or more of the following applies: (i) the entity’s annual turnover for the current year is likely to be less than $250 million; (ii) the entity carried on a business in one of the 2 financial years immediately before the current year, and its annual turnover for that year was less than $250 million; (iii) the entity was a non-profit body during one of the 2 financial years immediately before the current year, and its annual turnover in that year was less than $250 million. Meaning of annual turnover (2) The annual turnover of an entity for a financial year is the total of the following that is earned in the year in the course of the business: (a) the proceeds of sales of goods and/or services; (b) commission income; (c) repair and service income; (d) rent, leasing and hiring income; (e) government bounties and subsidies; (f) interest, royalties and dividends; (g) other operating income. (3) In applying subsection (2) to a non‑profit body, treat the operations or activities carried out by that body as the business of the body.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Rules 2020.
This instrument is made under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
In this instrument:
Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
annual turnover has the meaning given by subsection 5(2).
business has the same meaning as in the Income Tax Assessment Act 1997.
entity has the same meaning as in the Income Tax Assessment Act 1997.
non‑profit body has the same meaning as in section 23‑15 of the A New Tax System (Goods and Services Tax) Act 1999.
Note: The term non‑profit body is not defined in the A New Tax System (Goods and Services Tax) Act 1999. However, this definition ensures that the meaning of the term in this instrument does not diverge from the meaning of the term in section 23‑15 of that Act.
(1) For the purposes of the definition of SME entity in section 4 of the Act, an entity is an SME entity at a time in a financial year (the current year) if: (a) the entity carries on a business in the current year, or is a non‑profit body during the current year; and (b) one or more of the following applies: (i) the entity’s annual turnover for the current year is likely to be less than $250 million; (ii) the entity carried on a business in one of the 2 financial years immediately before the current year, and its annual turnover for that year was less than $250 million; (iii) the entity was a non-profit body during one of the 2 financial years immediately before the current year, and its annual turnover in that year was less than $250 million. Meaning of annual turnover (2) The annual turnover of an entity for a financial year is the total of the following that is earned in the year in the course of the business: (a) the proceeds of sales of goods and/or services; (b) commission income; (c) repair and service income; (d) rent, leasing and hiring income; (e) government bounties and subsidies; (f) interest, royalties and dividends; (g) other operating income. (3) In applying subsection (2) to a non‑profit body, treat the operations or activities carried out by that body as the business of the body.