Economic Stimulus Package
Scott Morrison announces Economic Stimulus Package
Late last week, the Federal Government announced a stimulus package worth $17.6 billion to help our economy during these difficult times. Australian businesses will be some of the biggest beneficiaries in an effort to boost the economy and save jobs. Here is an outline of how the government plans to assist businesses in the short term.
SUPPORTING BUSINESS INVESTMENTS
Instant asset write-off threshold increased from $30,000 to $150,000
• For businesses with an aggregated turnover of less than $500 million
• The $150,000 threshold applies on a per asset basis so eligible businesses can immediately write-off multiple assets
• Applies for new or second-hand assets first used or installed ready for use by 30 June 2020.
PROVIDING CASH FLOW ASSISTANCE FOR BUSINESSES
Cash flow boost by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses.
• Turnover of less than $50 million that employ staff between 1 January 2020 and 30 June 2020.
• This payment will be tax-free.
• Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
Wage subsidy for apprentices or trainees
• Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.
• If this apprentice leaves during this time, the subsidy will be available to their new employer.
The Economic Stimulus Package also provides numerous other assistances to lower-income households and severely affected regions. For full details of the announcement, click here.
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Published: Monday, 17th March 2020