In response to ever-changing circumstances involving the Coronavirus (COVID-19), the Federal Government has announced their new Economic Stimulus Package - dedicating a $17.6 billion economic plan.
The package is aimed at ensuring continual financial injection into the Australian economy by supporting households and small-to-medium sized business to combat the challenged presented by the spread of Coronavirus.
Taking effect from 12 March 2020, the package will provide assistance for SME businesses across the following areas:
- Increased Instant Asset Write-Off Threshold from $30,000 to $150,000, and expanding access to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
- 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.
- Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
- Cash-Flow Assistance - a tax-free payment boost of up to $25,000 (with a minimum of $2,000) for eligible small-to-medium sized business employers. 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.
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- Eligible businesses will receive the payments as a credit upon lodgment of their Business Activity Statement or Instalment Activity Statement from 28 April 2020. If the business is in a refund position, then it will be paid within 14 days.
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- Employers who lodge their BAS on monthly basis will eligible to receive the payment for March 2020, April 2020, May 2020, and June 2020 lodgments; while quarterly lodgers will be eligible to receive the payment for quarters ending March 2020 and June 2020.
- Please refer to the following link for more details - Link
- Employers who lodge their BAS on monthly basis will eligible to receive the payment for March 2020, April 2020, May 2020, and June 2020 lodgments; while quarterly lodgers will be eligible to receive the payment for quarters ending March 2020 and June 2020.
- Eligible employers can apply for a wage subsidy of 50 per cent of apprentices' or trainees' for up to 9 months from 1 January 2020 to 30 September 2020.
For full details on the Economic Stimulus Package - please click the link.
The ATO has also announced a number of initiatives to support SME businesses.
Intended assistance will be introduced through the following measures:
- Deferring payments relating to Activity Statements, Income Tax assessments, and Fringe Benefit Tax assessments by up to four months;
- Allowing businesses who report GST quarterly to swap to monthly reporting to access GST refunds quicker that they are entitled to;
- Allowing businesses to vary down their Pay As You Go (PAYG) instalments to zero for the March 2020 quarter;
- Allowing businesses to claim refunds for PAYG instalments paid during the September 2019 and December 2019 quarters;
- Remitting interest and penalties incurred after 23 January 2020 which had been applied to tax liabilities; and
- Allowing businesses to enter into low-interest payment plans for their existing and on-going tax liabilities.
It is important to note that support will not be implemented automatically - with businesses and advisers needing to contact the ATO to discuss their situation.
For More Information
For more information, please contact the Archer Gowland office on (07) 3002 2699.
