Government Coronavirus Stimulus Package
The Government’s $17.6 billion economic stimulus package has the following key tax measures:
- 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.
- 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.
- 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.
- 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.
- 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.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2