In response to the Coronavirus, the Government has announced a range of measures to assist businesses and individuals. These measures are all subject to being passed through Parliament.
Please call your Client Manager at Enspira if you need advice on how these stimulus measures might affect you.
Download PDF on Stimulus Package here.
Business Investment (for businesses with annual turnover of less than $500 million):
- The instant asset write-off threshold is being increased from $30,000 to $150,000 until 30 June 2020 for eligible businesses.
- An investment incentive will enable businesses to accelerate depreciation deductions by an additional 50% of the asset costs in the first year of purchase. This is a time limited 15-month investment incentive through to 30 June 2021.
These measures start today (legislation, if passed, will be backdated to today).
Cash flow assistance for businesses
- Cash Flow Boost for Employers. This payment will provide cash flow support to businesses with a turnover of less than $50 million that currently employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. Businesses will receive payments of 50% of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days. Minimum payment of $2,000 and maximum of $25,000 for eligible small and medium-sized businesses.
- Apprentice Support. Eligible employers of apprentices and trainees can apply for a wage subsidy of 50% 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.
Stimulus payments to households
- A one-off $750 stimulus will be paid to pensioners, social security, veteran and other income support recipients and eligible concession card holders. 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% of payments expected to be made by mid-April.
ATO Leniency
The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months. This is similar to relief provided following the bushfires for taxpayers affected by the coronavirus, on a case-by-case basis.
If you need any assistance with this, please contact your Client Manager or Partner at Enspira Financial or call 1300 908 558.
Kind regards,
The team at Enspira Financial