GOVERNMENT ANNOUNCES $17.6B ECONOMIC STIMULUS PACKAGE TO SUPPORT SMALL & MEDIUM BUSINESSES by Anthony Hanna, Senior Business Advisor at INFUSION360
In light of the COVID-19 virus and its impact on both the global and local economy, the Federal Government has announced a range of economic initiatives in its $17.6 billion stimulus package aimed to support the Australian economy, including small and medium businesses, in combatting anticipated recession fears.
These initiatives aim to:
- Provide cash flow assistance to support businesses to continue operating and maintain employee jobs
- Support business investment
- Assist Australian households discretionary spending
- Targeted support for Australia’s most at-risk sectors and communities
What does this mean for your business? The stimulus package contains several incentives for INFUSION360’s clients which will provide much-needed assistance that will not only support operations but additionally help achieve the Federal Government’s goals of allowing businesses to maintain initial investment plans and stimulating investment and fiscal consumption, including;
- An increase to the instant asset write-off threshold from $30,000 to $150,000 for businesses turning over less than $500 million per annum (until 30 June 2020).
- Accelerated depreciation deductions for businesses with the same turnover. Small to medium businesses will now be able to claim an additional 50% off the asset cost to support business investment (until 30 June 2021).
- Cash-based, tax-free payments between $2,000 – $25,000 for eligible small and medium-sized businesses turning over less than $50 million per annum, between 1 January 2020 and 30 June 2020. Businesses will receive payments of 50% of their Business Activity Statements (BAS) or Instalment Activity Statement (IAS) from 28 April with refunds to then be paid within 14 days.
- Apprentice & trainee wage subsidies for eligible employers. Eligible employers 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.
- A New Medicare Item for General Practitioners will be introduced to support family physicians in delivering health advice remotely.
The ATO will also offer administrative relief for certain tax obligations. These will include deferring tax payments for those affected and will be assessed on a case by case basis. INFUSION360 has encouraged its clientele to take all precautionary measures in ensuring virus and business risks are mitigated by implementing a Business Continuation Strategy (BCS).
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