Government introduces Stimulus Measures to boost a Coronavirus hit economy. 

The Federal Government has today announced an economic stimulus package, specifically targeted at businesses.

Note, these are just announcements at this stage and subject to change.

Instant Asset Write-Off

The existing $30,000 instant asset write off which was due to cease on 30/6/2020, has been increased to a $150,000 and extended to 30/6/2020.

This will be available for business with turnover up to $500m.

For all Employers with Turnover Under $50m

A tax free rebate of between $2,000 and $25,000 will be made available to employers with turnover of less than $50m.

The rebate will be delivered by the Australian Taxation Office as a credit in the activity statement system from 28^th April 2020, after the business lodges its upcoming Activity Statement.

The rebate will be equal to 50% of the amount of tax withheld from the wages reported on the Activity Statement, up to a maximum of $25,000.

If you do not withhold at all, or have a small level of withholding there will be a minimum $2,000 rebate.

If the rebate places you in a refund position, the Tax Office will refund you the balance within 14 days.

Quarterly Activity Statement lodgers will have their rebate calculated on the March 2020 and June 2020 Activity Statements.

Monthly Activity Statement lodgers will have their rebate calculated on the March 2020, April 2020, May 2020 and June 2020 Activity Statements.

Please note that the $25,000 cap applies overall, not per Activity Statement lodgement.

For Employers With Apprentices and Trainees

Eligible employers will be able to claim a subsidy of up to 50% of the apprentices and trainees wages paid during the period 1/1/2020 to 30/9/2020, up to a maximum of $21,000 per eligible apprentice or trainee.

Applications for the payment should be available in early April 2020. Information will be available through any Australian Apprenticeship Support Network provider.

Again these are just announcements and subject to change. If you have any queries, please contact our office to speak with one of our experienced Accountants  tel: 5221 7655.

 

This is is a general summary only. For more information, please speak with your Accountant.