The Coronavirus Stimulus Package: What it means for you

The Federal Government has announced a $17.6 billion stimulus package to support individuals and businesses through the disruption caused by the Coronavirus. The measures are worth approximately 1.25% of GDP and include measures to fast-track investment, cash payments for small and medium businesses to save jobs and subsidies to help keep apprentices employed. Measures we know many of our business clients would enjoy right now. The first phase of this economic stimulus package and further economic measures will be implemented in the coming weeks and months.

While this has not yet been legislated, it is our understanding that it will be introduced into parliament within the week, and that the Opposition has indicated it will support the package.

So, who gets what?

Increasing the Instant Asset Write Off to $150,000

For businesses with aggregated turnover of less $500 million, assets purchased and ready for use prior to June 30 that cost $150,000 or less can be written off in full. Making investments in these types of assets very attractive tax planning opportunities over the next few months. Please do keep in mind if purchasing a motor vehicle the luxury car limit may reduce this benefit to an immediate deduction of $57,581 rather than the full $150,000.   

FACT SHEET: For more information on delivering support for business investment click here.


Cash flow assistance for businesses

They announced tax-free payments for PAYG withholding relief of up to $25,000 for businesses with a turnover of up to $50 million. This will be managed by the ATO and does not need registration. If you withhold PAYG and declare it in your March to June BAS you will have 50% of it refunded up to the $25,000 cap.

FACT SHEET: For more information on cash flow assistance for businesses click here.


Workforce support

Businesses with less than 20 employees and employee apprentices could receive up to $21,000 per apprentice over the next 3 quarters if the apprentices remain employed. This does require registration which we will look into and share once the full detail is out.


Individuals and households

Some members of the community will receive a one-off $750 payment to lower-income Australians. These include pensioners, Newstart recipients, carers, those receiving family tax benefit and some others.

FACT SHEET: For more information on stimulus payments to individuals and households click here.


As always Highview Accounting & Financial will be across all things that can help our clients. We will follow further announcements and share through our social media platforms and email when necessary. If you have any questions about the above information please speak with your Highview Accountant. Stay healthy and all the best from the Highview team.

Cranbourne: 03 5990 1000
Prahran: 03 9529 1566
Mornington: 03 5911 2100
Ringwood: 03 8899 9797

Sources:
mybusiness.com.au
Australian Government’s Economic Response to the Coronavirus via treasury.gov.au/coronavirus