Economic stimulus package to help business
A $17.6 billion economic stimulus package announced by the Morrison Government today in response to the Coronavirus crisis is focused on helping small and medium sized businesses to stay in business and to keep Australians in jobs.
The package has four parts:
- Supporting business investment;
- Providing cash flow assistance to help small and medium sized business to stay in business and keep their employees in jobs;
- Targeted support for the most severely affected sectors, regions and communities;
- Household stimulus payments that will benefit the wider economy.
To assist business the government will:
- increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020;
- provide a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions;
- boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. Businesses will receive payments of 50% of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days;
- offer $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
The government will also commit $4.8 billion to provide a one-off $750 stimulus payment to pensioners, social security, veterans and other income support recipients and eligible concession card holders.
Plus $1 billion will be committed to support those sectors, regions and communities disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months. This is similar to relief provided following the bushfires for taxpayers affected by the coronavirus, on a case-by-case basis.
The HRIA partners with business advisory, HLB Mann Judd who are available to talk with all HRIA members as required.