Government Coronavirus Stimulus package
This week the Australian Government announced a major economic stimulus package which aims to help businesses across the country through these challenging and volatile times. We've summarised some of the key benefits applicable to businesses as a result of these new incentives.
How can the stimulus benefit your business?*
Instant asset write-off scheme: As you may know, an existing instant asset write-off scheme has been in place allowing businesses to claim a tax break on what they spend on business-related assets. This threshold has been increased from $30,000 to $150,000 for companies with aggregated annual turnover up to $500 million. But you need to hurry here; it's only available for purchases up to 30 June 2020. Investment incentive: In addition, a 15 month investment incentive (up to 30 June 2021) will allow businesses with turnover up to $500 million to accelerate depreciation deductions, specifically an additional 50% of the asset cost in the year of purchase. Cash flow / employee assistance: There will be almost 700,000 small to medium businesses (those with turnover up $50m) across Australia that will receive between $2,000 and $25,000 cash payments to help pay wages to existing staff and/or employing additional staff where required. This payment will be tax free, made as a payment up to 50% of their PAYG withheld shown on the Business Activity Statement or Instalment Activity Statement from 28 April 2020 with refunds to then be paid within 14 days. If you have employees or director fees with no PAYG Withheld, simply enter the payment at W1 and place a 0 at W2. The ATO will refund you a one off payment of $2,000 In addition, eligible employers of apprentices or trainees will be able to apply for a wage subsidy of up to 50% of the individual's wage for up to 9 months from 1 January 2020 to 30 September 2020.