The Australian Government has announced a $18.9 billion economic plan in response to coronavirus COVID-19. Our Business Support Team is happy to have a chat with you about which aspects of the package suit your business and how to access them.
Increasing the Instant Tax Write Off
The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50m) until 30 June 2020.
Visit the Increasing the Instant Asset Write-Off page on the Australian Government business website.
Boosting Cash Flow for Employers
Provides up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff.
- The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible upcoming activity statements.
- Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50 per cent 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.
Visit the Boosting cash flow for employers page on the Australian Government business website.
Back Business Investment (BBI)
A time-limited 15-month investment incentive to support business investment and economic growth over the short term, by accelerating depreciation deductions. This applies to eligible assets acquired from 12 March 2020 and first used or installed by 30 June 2021.
- Benefit — deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost
- Eligible businesses — businesses with aggregated turnover below $500 million.
- Eligible assets — new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents) acquired after announcement and first used or installed by 30 June 2021. Does not apply to second hand Division 40 assets, or buildings and other capital works depreciable under Division 43.
Visit the Backing Business Investment (BBI) page on the Australian Government business website.
Supporting apprentices and trainees
If you employ an apprentice or trainee you may be eligible for a wage subsidy of 50 percent of their wage paid from 1 January 2020 to 30 September 2020. You can register for the subsidy from early April 2020.
Visit the Supporting apprentices and trainees page on the Australian Government business website.
Employer, finance and business obligations
Find out your employer and business obligations if you or your employees are affected by the coronavirus.
Visit the Employer, finance and business obligations page on the Australian Government business website
Increased and accelerated income support
Expanding eligibility to income support payments and establishing a new, time‑limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months and will not be income tested.
Visit the Increased and accelerated income support page.