In the wake of Coronavirus and the economic events unfolding due to the health pandemic, the Australian Government has announced a $17.6 billion Stimulus Package to combat the flow-on effects to Australian businesses.
We have compiled the 4 key components which are most relevant to shed some light on what this means for you.
The package will provide support for businesses and the overall economy with four key objectives:
- Household stimulus payments that will benefit growth in the economy.
- Support business investment.
- Provide cash flow assistance to help small and medium-sized businesses to stay in business and keep their employees in jobs.
- Targeted support to the most severely affected sectors, regions and communities.
- One-off payments of $750 will be made to all Australians receiving government payments with the payment being made on the 31st of March.
- Instant asset write-off increased from $30,000 to $150,000.
- Accelerated depreciation deductions accessible to businesses with turnover less than $500 million. Businesses will be able to deduct 50 per cent of the cost of an eligible asset on installation up until 30th June 2021.
Cash Flow Assistance
- A tax-free payment of up to $25,000 to small and medium sized businesses with a minimum payment of $2,000. The assistance will be provided to businesses with turnover less than $50 million and who employ staff.
- Payments to subsidise apprentice and trainee wages. Employers with less than 20 employees can apply for a 50 per cent subsidy of their apprentice or trainee wages for up to 9 months from the 1st of January to 30th of September 2020.
- The Australian Government has set up a $1 billion ‘Coronavirus Fund’ to support regions and communities most greatly affected by the economic impacts of the Coronavirus, including heavily dependent industries such as tourism, agriculture and education.
As this is a constantly evolving worldwide event, we will keep you in the loop as we hear more information that may be relevant to you.
In relation to our office, we are open so please come back to us with any queries you may have.
Most importantly, look after your neighbours, help your communities and protect your family in these changing times.