Covid19 Government Stimulus Package

You’ve probably heard some news around the Government Stimulus Package, so we just wanted to highlight the main points that might provide some relief for your business.

Key Points

1.       The stimulus package is still subject to the passage of legislation, so the details/criteria may still change slightly.

2.       Maximum $25K Tax Free payment to Small Business – Payments based on 50% of wages tax withheld for March 2020 and June 2020 quarters, capped at a maximum payment of $25,000 ; employers not required to withhold tax from wages will receive a minimum payment of $2,000. These payments will be delivered via a credit to your ATO Integrated Client Account from 28th April 2020.

3.       Maximum $21K to help employers keep apprentices and trainees in work – It is intended that eligible businesses will receive a maximum of $7,000 per quarter per eligible apprentice or trainee, back-dated from the start of the year (1st January 2020) to 30th September 2020. The apprentice or trainee must have been in training with a small business as at 1st March 2020.

4.       Instant Asset Write-off extension – Currently, asset purchases up to $30k (net of GST) can be immediately deducted for businesses with a turnover of up to $50 million. This will be extended to asset purchases up to $150,000 for businesses with a turnover up to $500 million – The extension applies from 12th March 2020 until 30th June 2020.

5.       Accelerated Depreciation Deductions – Until June 30 2021, businesses with a turnover of less than $500 million will be able to deduct an additional 50% of an asset costing more than $150,000 in the year the asset was purchased. This applies from 12th March 2020.

We are here to help you through this challenging period, don’t hesitate to contact us if you have any queries.