On the 12th of March 2020 the Government announced a $17.6 billion dollar stimulus package aimed at stopping the economy going into recession in the wake of COVID-19 – We’ve outlined some of the key measures from this package below.
$25,000 CASH BOOST FOR EMPLOYERS
Employers will receive tax free payments equal to 50% of their PAYG withholding obligation in the March or June Quarter BAS or April & May monthly IAS up to a maximum of $25,000.
If you are registered and pay wages, even if no PAYG is withheld, you are entitled to a minimum payment of $2,000 in the June Quarter BAS.
Please talk to us so we can maximise this opportunity for you.
INSTANT ASSET WRITE OFF
Plant and equipment costing less than $150,000 and acquired by a business with a turnover of <$500 million are eligible for an instant write off deduction if acquired and installed for use between the 12th of March 2020 and the 30th of June 2020. This applies to new and second hand equipment. This is up from $30,000.
Plant and Equipment purchased from the 12th of March 2020 and first used or installed for use by the 30th of June 2021 will be eligible for an upfront depreciation deduction of 50% of the cost of the asset. Existing depreciation rules apply to the balance of the asset cost. This is for NEW plant only.
APPRENTICE AND TRAINEE WAGE SUBSIDY
The Government will offer a 50% subsidy for wages paid from the 1st of January 2020 to the 30th of September 2020. This subsidy is capped to $7,000 for each eligible apprentice or trainee and is payable each quarter with the BAS (ie 3 BAS quarters x $7,000 or maximum of $21,000).
$750 ONE OFF PAYMENT
This will be paid to social security, veterans and income support recipients and eligible concession card holders.