Payment and Support for Households and Businesses due to COVID-19

Due to the Coronavirus Crisis, the Australian Government has introduced various initiatives to assist households and businesses during this uncertain time.

Businesses

The instant asset write off is increasing from $30,000 to $150,000 for assets purchased and ready to use between 12 March 2020 and 30 June 2020. This is for new or second hand assets.

Businesses with a turnover less than $500 million will be able to deduct an additional 50% of the asset cost in the year an eligible asset is purchased. This is for assets purchased during the 15-month period of 12 March 2020 to 30 June 2021.

The Government has introduced the following changes for the next 6 months:

  • The threshold for creditors to issue a statutory demand on a company has increased from $2,000 to $20,000

  • The time allowed for a company to respond to statutory demands has increased from 21 days to 6 months

  • Directors will be provided with temporary relief from personal liability for trading while insolvent

  • Providing temporary flexibility in the Corporation Act to provide targeted relief for companies from Act provisions to deal with unforeseen events arising due to the Coronavirus health crisis

The ATO is also offering to tailor solutions for taxpayers, including:

  • Temporary reduction of payments and deferrals

  • Withholding enforcement actions including director penalty notices and wind ups

Households

  • The Government is expanding eligibility to income support payments and reducing asset and income testing from some of these payments.

  • There is a tax free payment of $750 to pensioners, social security, veteran and other income support recipients and eligible concession card holders available.

  • The banking industry and lenders are supporting Australians struggling to make home loan repayments by offering support packages and relief. Speak to your banker for a specific solution tailored to you.

We understand that this is a difficult time for all of our clients and our aim is to assist you as best we can. If you have any questions, or would like to speak to someone about your current financial situation please do not hesitate to contact us on 08 8418 2111.