The Australian Government has announced a $17.6 billion economic stimulus package in response to the Coronavirus (COVID-19) outbreak. The idea of the package is to ensure as much money as possible is put back into the economy as quickly as possible, with $11b of the package to be rolled out by June 2020.
Four key initiatives include:
Fast-tracking asset expenditure and investment
For businesses with an aggregated turnover below $500m, the instant asset threshold will be significantly expanded for assets up to 150K and will operate from today until 1 July 2020.
$2,000 - $25,000 payout for small and medium businesses
Cash flow assistance for businesses will be paid as a credit to applicable businesses upon lodgment of their activity statements, and where this results in an overall credit, the ATO will refund in cash.
Subsidising wages for trainees and apprentices
Even if it’s not possible to retain your trainee or apprentice in the current climate, a payout equivalent to 50% of their wages may be applicable.
Boosting domestic demand
Low-income Australians and families are set to receive a one-off payment of $750 payment to assist in boosting the overall economy.
The Australian Tax Office (ATO) will also provide administrative relief for certain tax obligations (similar to relief provided following the bushfires) for taxpayers affected by the Coronavirus outbreak, on a case-by-case basis.
Let us help you work through ways to maximise offsets and minimise tax implications for your business.
After all, there is strength in numbers.
Source: Economic Response to the Coronavirus, Australian Treasury