Through our membership with Chartered Accountants Australia & New Zealand, we have received details in relation to the recent announcement of the Government’s new strategies to help businesses as a result of COVID-19 outbreak.
There are 2 parts:
- An Economic Stimulus package
- Support measures for those affected by COVID-19.
Please read the following information. You are welcome to refer your questions to us and we will assist you.
“The Government has announced a $17.6 billion economic stimulus package to support the Australian economy and households while dealing with the significant challenges posed by the spread of the coronavirus, COVID-19.
The package has 4 parts:
- Delivering support for business investment:
- increase in the instant asset write off threshold from $30,000 to $150,000 until 30 June 2020
- 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% of the asset cost in the year of purchase. These measures will support over 3.5 million businesses (over 99% of businesses), employing more than 9.7 million employees or 3 in every 4 workers. The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward, to support economic growth over the short term
- Cash flow assistance for businesses:
- businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020 will be able to receive a payment from $2,000 up to $25,000. Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50% of the amount withheld, up to a maximum payment of $25,000. Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax. The payment will be tax free.
- eligible employers can apply for a wage subsidy of 50% of an 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. It is proposed that employers will be able to register for the subsidy from early April 2020.
- Stimulus payments to households to support growth:
- provide a one-off $750 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.
To implement the stimulus plan, a package of Bills will be introduced into Parliament in the final Autumn sitting week in March 2020 for Parliament’s urgent consideration and passage.
|ATO support measures to assist those affected by COVID-19|
|The ATO has announced it will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.
Options available to assist businesses impacted by COVID-19 include:
People will need to contact the ATO for assistance. Anyone impacted by COVID-19 is advised to contact the ATO to request assistance on the Emergency Support Infoline 1800 806 218, when they are ready, to discuss their situation”.