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#coronavirus #coronaviruseconomicstimulus #sme #taxbenefits
Following the announcement by the Morrison Government on 12 March, 2020, the economic stimulus package has been released to assist Australians as the world deals with the impact of the spread of this pandemic.
In short, the package targets five major groups. Here's what each will receive:
- Welfare recipients: an extra $750 per person
- Small businesses with apprentices: up to $21,000 to keep apprentices in work through wage subsidies
- Small to medium-sized businesses: between $2,000 and $25,000 to help with cashflow
- Businesses generally(excluding the very largest): the instant asset write-off threshold raised to $150,000 and an extra depreciation discount to encourage investment
- Affected businesses: access to a new $1 billion fund
The Government promised that payments to welfare recipients will start on March 31, 2020. More than 90 per cent of payments are "expected to be made" by mid-April. Legislation will be introduced into Parliament later this month to give effect to these measures. All legislation is expected to pass. Treasurer Josh Frydenberg said $11 billion of the $17.6 billion package would be paid by the end of June.
In terms of allocation, about $8bn is for businesses, $4 bn for depreciation & write-off tally and about $5 bn for welfare recipients.
What’s for small businesses?
- Cash flow support for businesses by way of payments of 50 per cent of their BAS or IAS from April 28, with refunds to then be paid within 14 days.
- Businesses will be able to register for apprentice wage subsidies from April 2, but more than $1 billion of this $1.3 billion measure isn't budgeted until next financial year.
- Business claiming tax write-offs will benefit the next time their tax is calculated, while benefits from the depreciation deduction will extend to June 30, 2021.
For further information, please refer to: https://www.pm.gov.au/media/economic-stimulus-package
