Today the Federal Government announced a $17.6 billion stimulus package to help prevent a coronavirus related recession. Of this package, $11.5 billion will be spent before 30 June 2020.
What are the key measures?
The instant asset tax write-off threshold will be raised from $30,000 to $150,000. This applies from now until 30 June 2020 and has been expanded to include businesses with an annual turnover of up to $500 million (up from the current $50 million).
A 50% accelerated depreciation deduction for asset purchases until 30 June 2021, available for businesses with less than $500 million turnover.
A tax-free payment of up to $25,000 for businesses with a turnover under $50 million. For those businesses that pay income tax on employee’s salary and wages (either quarterly or monthly) they will receive a payment via their BAS or IAS, from 28 April 2020, equal to 50% of the amount withheld, up to a maximum of $25,000. The refunds will be paid within 14 days. Businesses that pay salary and wages but are not required to withhold tax will receive a minimum of $2,000.
A 50% wage subsidy for apprentices will deliver payments up to $21,000 per small business to keep help apprentices employed.
An instant cash payment of $750 for pensioners, holders of the Commonwealth seniors card and recipients of Newstart, carer’s allowance, youth allowance, veterans support, disability support and family tax benefits. These payments will be rolled out from 31 March 2020.
The money will be available over the four months of March, April, May and June and the maximum a business will be entitled to across that period is $25,000.
The relevant legislation outlining these measures will be released over the coming days. We will keep you up-to-date with all relevant details and information as soon as it is made available.
If you have any questions about this post, please contact Vanessa Priest at vpriest@baskinclarkepriest.com.au or Kirsty McDonnell at kmcdonnell@baskinclarkepriest.com.au or call 02 9389 1600.