The Prime Minister has announced a $17.6 billion stimulus package to support business, households and the Australian economy against the impact of coronavirus. Key immediate measures to stimulate the economy include:
Business investment support
- An increase in the instant asset write-off threshold from $30,000 to $150,000, expanded to include businesses with a turnover of less than $500 million per annum (previously $50 million).
- A 15-month investment incentive (available until June 30, 2021) to support business investment through accelerated depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50% of asset costs in the year of purchase.
Cashflow assistance for businesses
- Businesses with a turnover of less than $50 million will receive a tax-free cashflow boost (minimum $2,000 up to $25,000) backdated to January 1, 2020 until June 30, 2020 with payments received through BAS or IAS processes from 28 April.
- Wage subsidies of up to 50% will be paid to businesses employing apprentices or trainees for up to 9 months (from January to September 2020).
Stimulus payments for householders
- One-off $750 payments from 31 March will be made to pensioners, social security, veteran and other income support recipients and eligible concession card holders.
Assistance for severely affected regions
- $1 billion will be available to support sectors, regions and communities most affected by the virus, such as tourism, agriculture and education, including administrative tax relief.
The stimulus package represents significant support for many businesses. For further information on the coronavirus stimulus package and what it means for your business, please contact our team on 03 9708 8801 or email info@rvpartners.com.au
