The government has announced an economic stimulus package in response to the Coronavirus and the ripple effect that is having on our nation.
The stimulus package is focused on keeping Australians in jobs and helping small and medium sized businesses to stay in business.
Prime Minister Scott Morrison said as part of the plan up to 6.5 million individuals and 3.5 million businesses would be directly supported by the package.
The Government has targeted businesses rather than employees with the aim of keeping people in jobs.
Business Investment Support
- Instant Asset Write Off (Assets purchased and ready to use between 12 March 2020 to 30 June 2020) - increase from $30,000 to $150,000 for businesses with an aggregated turnover of less than $500million. Previously only business under $50million could access the $30,000 instant asset write off. Please do keep in mind if purchasing a motor vehicle the luxury car limit may reduce this benefit to an immediate deduction of $57,581 rather than the full $150,000.
- 15-month investment incentive (to 30 June 2021) – businesses with less than $500million can access accelerated depreciation, where they will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
Boosting Cash Flow for Employers
- Businesses with a turnover less than $50 million and who employ workers will be eligible for a tax-free subsidy for PAYG withholding of between $2,000 and up to $25,000. If you withhold PAYG and declare it in your March to June BAS you will receive a payment equal to 50% of the amount withheld, up to a maximum payment of $25,000.
- The payment will be delivered by the ATO as a credit to the Integrated Client Account from 28 April 2020 and upon lodging the Activity Statement. It will offset any current ATO liability. If a refund if due, it will be paid within 14 days.
- Apprentice/Trainees Support (January 2020 to September 2020) - Those employing apprentices will have wages subsidy of 50% for that apprentice for 9 months from January 2020 to 30 September 2020.
Severely affected regions
- $1 billion to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus
- ATO Administrative Relief - The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months
The Government has targeted low income earners are they are most likely to spend the one-off payment, which will help stimulate the economy.
- 6.5 million lower income Australian’s will receive a $750 one off payment aimed to boost the economy. The payment will be made to all social security, veteran and other income support recipients and eligible concession card holders.
For full details please visit: https://www.pm.gov.au/media/economic-stimulus-package