The Government has announced a $17.6 billion economic stimulus package to help stave off an economic recession.
The main points:
- From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
- For a limited time of 15-months an investment incentive will apply (through to 30 June 2021) This will allow some accelerate depreciation deductions. Businesses with a turnover of less than $500 million, will be able to immediately deduct 50% of the cost of an eligible. This measure is proposed to only apply to new depreciating assets first used, or installed ready for use, by 30 June 2021.
- Tax-free payments of up to $25,000 for eligible small and medium businesses (i.e., with a turnover of less than $50 million that employ staff) based on their PAYG withholding obligations. This will assist most small businesses with employees. The amount will be calculated as 50% of the PAYG withheld on wages. It is proposed that the ATO will manage the deposit of funds directly to the businesses ATO BAS account not the bank account.
- Tax-free payments of $750 to social security, veteran and other income support recipients and eligible concession card holders.
- Wage subsidies to support the retention of apprentices and trainees – Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies of 50% of an apprentice’s or trainee’s wage for up to nine months starting from 1 January 2020 to 30 September 2020. The maximum subsidy available for each apprentice/trainee is $21,000.
- The waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and the waiver of entry fees for Commonwealth National Parks. – The provision of additional assistance to help businesses identify alternative export markets or supply chains. – Further targeted measures to further promote domestic tourism.
If you would like further details on how these measure affect your business please contact our office to discuss on (07) 3823 2344.