What the Government’s Corona/COVID-19 Stimulus Package Means For You and Your Business
The Government has announced the details of a $17.6b stimulus package to support businesses through the COVID-19 crisis. Many of Advivo’s clients and friends will be eligible for parts of this stimulus package and the Advivo team are available and able to help you and your business through these troublesome times.
Below are the key highlights of the Government’s Corona/COVID-19 Stimulus Package. If you have any questions in relation to how the below could affect you, or how we may be able to help your business through this crisis please don’t hesitate to contact us.
Support for Business Investment
- Increase in the instant asset writes off threshold from $30,000 to $150,000 and access expanded to include businesses with an aggregated annual turnover of less than $500 million until 30 June 2020.
- Important – the current car cost limit for depreciation will still apply to effectively cap the maximum deduction for a ‘car’ to $57,581.
- Accelerated depreciation for a 15-month window (available to 30 June 2021).
- Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
Click here for more information – Support for business Investment
Cash Flow Assistance for Businesses
- Cash flow boost for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses.
- Providing cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020.
- The 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.
- Providing cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020.
- Support for small businesses and the jobs of around 120,000 apprentices and 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.
- Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
Click here for more information – Cash flow assistance for businesses
Stimulus Payments to Households to Support Growth
- A one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession cardholders.
- The payment will be tax-free and will not count as income for Social Security, Farm Household Allowance and Veteran payments.
- There will be one payment per eligible recipient. If a person qualifies for the one-off payment in multiple ways, they will only receive one payment.
- Payments will be from 31 March 2020 on a progressive basis, with over 90 per cent of payments expected to be made by mid-April.
Click here for more information– Stimulus payments to households to support growth
Assistance for Severely-affected Regions
- Additional support for those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
- This will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and Commonwealth National Parks.
- It will also include additional assistance to help businesses identify alternative export markets or supply chains.
- Targeted measures will also be developed to further promote domestic tourism.
If you have any other queries, please contact our office today!
