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 Chan & Naylor Accountants office to discuss on (07) 3823 2344. We offer free advice via 10 minute phone calls.