We understand that many people are facing a high level of uncertainty during this time. We wanted to give you an overview of the current measures being put in place to assist Australians.
Cashflow Assistance for Business
A tax free payment of between $2,000 and $25,000 paid to eligible businesses that employ staff. You do not need to apply for this amount as it will automatically be included as a credit on a limited number of your activity statements. Payment will commence in the activity statement for the period ending 31 March 2020.
Eligible employers of apprentices and trainees can apply for a wage subsidy of 50% of an apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. The maximum amount per eligible apprentice or trainee will be $21,000 (or $7,000 per quarter). Eligible employers can register from early April 2020 and final claims for payment must be lodged by 31 December 2020.
The Government is also offering administration relief for certain tax obligations, including deferring tax payments up to four months, on a case-by-case basis.
Support for Business Investment
Increasing the instant asset write off from $30,000 to $150,000 for assets purchased and ready to use between 12 March 2020 and 30 June 2020. They have also expanded access to the write off by increasing the qualifying turnover to less than $500 million. The assets can be new or second-hand.
Businesses with a turnover of less than $500 million will also be able to deduct an additional 50% of the asset cost in the year an eligible asset is purchased. This will apply to any eligible assets purchased during the 15 month period of 12 March 2020 to 30 June 2021.
Payments for Households
A one-off, tax free payment of $750 to pensioners, social security, veteran and other income support recipients and eligible concession card holders. Payments will begin from 31 March 2020 on a progressive basis, with 90% of payments expected by mid-April 2020.
The legislation for the above measures has not been introduced into parliament yet but is expected to be later this month and all measures are expected to be passed.
The Australian Banking Association announced today that any small business affected by COVID-19, regardless of industry, will be entitled to a sixth month deferral of all loan payment for business related loans. You will need to contact your bank to register for the deferral.
Please contact our office should you require further information on any of the measures we have highlighted above.