The Government has just announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the Coronavirus.
The package has four parts:
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- Supporting business investment
- $700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
- b. $3.2 billion to back business investment by providing a time limited 15 month incentive (through to 30 June 2021) to support business investment. Businesses with a turnover of less than $500 million will be able to deduct an additional 50% of the asset cost in the year of purchase.
- Cashflow assistance for business
Providing cash flow assistance to help small and medium sized businesses to stay in business and keep their employees in jobs- $6.7 billion to Boost Cash Flow for Employers by up to $25,000, with a minimum payment of $2,000 for eligible business with a turnover of less than $50 million, between 1 January 2020 and 30 June 2020. Businesses will receive payments of 50% of their Business Activity Statements or Instalment Activity Statement (PAYGW) from 28 April with refunds to then be paid within 14 days.
- $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50% of their apprentice’s or trainee’s wages for up to 9 months from 1 January 2020 to 30 September 2020.
- Stimulus Payment to households to support growth
$4.8 billion will go toward household stimulus payments that will benefit the wider economy. It will provide one-off $750 tax free stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders. - Assistance for severely-affected regions.
$1 billion to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
- Supporting business investment
This package will be moved through Parliament in the final week of March.
Please contact us if you would like further information or clarification via email at consulting@austasiagroup.com or call us on (08) 9227 6300 and ask for the Consulting Team.
Best regards,
Simon Chesson
Director
Important information and disclaimer
This publication has been prepared by AustAsia Group including Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005).
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