COVID-19: Federal Government Stimulus Package Announced
The World Health Organisation has now declared COVID-19 (coronavirus) a pandemic. Since its initial identification in Hubei Province, China in November-December 2019, the novel coronavirus outbreak has spread outside the region, affecting more than 20 countries and impacting health, trade, travel and the global economy.
On 13 March 2020, the Australian Prime Minister, Scott Morrison, announced several stimulus measures to prop up the Australian economy. It is estimated that $11 billion will be spent by 30 June 2020.
Some of the announced measures include:
- $750 cash payments to welfare recipients.
- Eligible employers can apply for a 50% wage subsidy for apprentices/trainees for the period 1 January 2020 to 30 September 2020.
- Small & Medium Businesses can expect a payment of up to $25,000, who employ people and have a turnover of less than $50m. This will be paid through the Business Activity Statements.
- Increase in the instant-asset write off threshold to $150,000 (from the current $30,000) for businesses with a turnover of up to $500m until 30 June 2020.
- Business with a turnover of less than $500m, can benefit from accelerated depreciation rates until 30 June 2021. Businesses will be able to deduct an additional 50% of the asset cost in the year of purchase.
With a more local focus, the PM has announced a waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and Commonwealth National Parks. He has also noted that the ATO will be setting up a temporary shop front in Cairns to assist small businesses.
For a more detailed explanation on the above announced measures, follow through this link to the official Media Release. https://www.pm.gov.au/media/economic-stimulus-package
For worked examples to further explain how the measures operation, follow this link: https://treasury.gov.au/coronavirus
The Queensland Government has already announced relief package to alleviate the pressures of Payroll Tax with a deferral of lodging and paying returns until 31 July 2020.
Other measures could be announced by the Government over time, as they assess the resulting situation.
If you wish to discuss how any of these measures/stimulus can assist you and your business, please contact the Halpin Partners Team today.