News

The Government’s $17.6 billion economic stimulus package has the following key tax measures:

1. Boost cash flow for employers by up to $25,000 with a minimum payment of $2,000. Businesses that employ staff between 1st January 2020 and 30th June 2020 will receive payments of 50% of their Business Activity Statements or Instalment Activity Statement PAYG withholding tax. The payments will be tax-free and apply to businesses with a turnover of less than $50 million. Businesses that pay wages and are not required to withholding any tax will still receive a minimum payment of $2,000.
2. Instant asset write-off increased to $150,000. Applies until 30th June 2020 for businesses with a turnover of less than $500 million. For example, assets that may be able to be immediately written-off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business. 
3. Investment incentive accelerates depreciation deductions through to 30th June 2021. Businesses with a turnover of less than $500 million will be able to immediately deduct 50% of the cost of the asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. 
4. Apprentice and trainee wage subsidy. Eligible employers can apply for a wage subsidy of 50% of the apprentices and trainees wage for up to 9 months from 1st January 2020 to 30th September 2020.
5. Tax-free payments of $750. Applies to 6.5 million social security, veterans, and other income support recipients and eligible concessional card holders residing in Australia.