The Government have announced a stimulus package to help support the economy during the tough times we are currently facing. The key points are outlined below. If you are unsure of how or of any of the details will affect you and your business, contact Alan and Invision Bookkeeping today for further information.
- $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
- $3.2 billion to back business investment by providing a time limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
These measures started Monday 16th March (legislation, if passed, will be backdated to that date).
Cash flow assistance for businesses
- $6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that currently employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. This measure will benefit around 690,000 businesses employing around 7.8 million people.
- In terms of eligibility, businesses with a turnover of less than $50 million that withhold tax on their employees’ wages will receive a payment equal to 50% of the amount withheld, up to a maximum $25,000.
- Enterprises that pay wages will get a $2000 minimum even if they are not required to withhold tax.
- Businesses will receive these payments following lodgement of their BAS or IAS from 28 April 2020 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 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
Read more about the Economic Stimulus Package Media release