Updated: Mar 19, 2020
Quick summary of the Australian Federal Government's stimulus package:
In a boost to prevent recession from the COVID-19 coronavirus impacts, the Australia Federal Government announced its first round of stimulus on 12 March 2020 and the second round is currently under discussion. Key takeaways include:
$150,000 instant asset write-off
Instead of reverting back to $1,000 from $30,000 for small business as at 1 July 2020, the threshold has been increased to $150,000 for businesses with turnover of less than $500 million until 30 June 2020.
Immediate deduction of up to 50% of the cost on installation for new depreciating assets first installed or ready for use by 30 June 2021 for businesses with a turnover of less than $500 million.
Cash flow assistance for businesses
Eligible employers may be entitled to a tax free payment of $2,000 up to a maximum of $25,000, up to 50% of the amount of PAYGW that is withheld to alleviate cash flow problems for businesses with a turnover of less than $50 million and who employ staff between 1 January 2020 and 30 June 2020.
Employers with less than 20 full-time staff can apply for a government subsidy of up to 50% of any wages paid to apprentices and trainees from 1 January 2020 to 30 September 2020. Registration for the subsidy will be open early April 2020 with a maximum subsidy of $21,000 per apprentice/trainee.
Stimulus payments to households to support growth
Tax free $750 support payment to low income earners, pensioners, income support recipients and eligible concession card holders which will not be counted for income testing purposes. These payments are expected to roll out as early as 31 March 2020.
Details can be found on https://www.pm.gov.au/media/economic-stimulus-package
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