The World Health Organisation has officially declared coronavirus COVID-19 a pandemic and stock markets around the world are experiencing massive daily fluctuations as confidence in global economies shrinks.
In response, the Australian Federal Government has announced an AU$17.6 billion stimulus package it hopes will protect our local economy by helping to maintain business and consumer confidence, support investment and keep people in jobs.
So, what does that mean for your business?
Support for Business Investment
The stimulus package contains two measures to support business investment:
Increased instant asset write-off:
From 12 March 2020, the Government has increased the instant asset write-off threshold from $30,000 to $150,000 and expanded access to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Business investment incentive:
A time-limited, 15-month investment incentive (through to 30 June 2021) has been introduced 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 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
Cash Flow Assistance for Business
Two measures have been introduced to support the cash flows of small and medium enterprises that employ people:
Cash flow boost
The Boosting Cash Flow for Employers measure will provide 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 tax-free cash flow support to businesses with a turnover of less than $50 million that employ staff.
Supporting apprentices and trainees
Eligible employers can apply for a wage subsidy of 50% of their apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. Where small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
The stimulus package also provides $1 billion to support regions most significantly affected by the Coronavirus outbreak.
Plus, around 6.5 million lower-income Australians will be provided with a one-off cash payment of $750 aimed to stimulate spending in the local economy.
Eligible? Now’s the Time to Apply
The Government has committed to moving quickly to implement the package with Bills to be introduced into Parliament in the final Autumn sitting week in March 2020 for Parliament’s urgent consideration and passage.
If you believe you are entitled to support, now is the time to start preparing. The Ayers Group provides valuable expertise and services to assist employers to manage their payroll and day to day administrative obligations. Our experts are on hand to assist you with documentation, or to connect you with specialists who can help you lodge an eligible claim for Federal government support.
Contact an expert from the Ayers Group today.
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