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Government Stimulus Package.

Government Stimulus Package.

The government has announced its long-awaited coronavirus stimulus package, pledging $17.6 billion to bolster the economy as the illness continues to spread.

The $17.6 billion package is focused on keeping small businesses afloat and their employees in work, it’s targeted to support the most affected sectors and communities.

The government says the package is “temporary, targeted and proportionate” and is designed to prop the economy up, so it can best recover when the coronavirus crisis subsides.

It includes cash grants of up to $25,000 for small businesses, $750 one-off payments for potential consumers, and a significant temporary extension to the instant asset write-off scheme.

There will also be administrative relief for some tax obligations, including potential deferrals, on a case-by-case basis.

Here’s what you need to know and how the package can benefit your business.

Increasing the instant asset write-off

  • The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

Backing business investment

  • The Government is introducing 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. 
  • These two measures will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees. 
  • Cash flow assistance for businesses – This assistance will support businesses to manage cash flow challenges resulting from the economic impacts of the Coronavirus and help businesses retain their employees. 
  • These two measures are designed to support employing small and medium enterprises and to improve business confidence. 

Boosting cash flow for employers 

  • This will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. 
  • The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff. 
  • The payment will be tax free

Supporting apprentices and trainees

  • Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 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. 
  • This measure will support up to 70,000 small businesses, employing around 117,000 apprentices

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P.O. Box 495
78 Henna Street, Warrnambool, VIC
Phone: (03) 55 618 618
Fax: (03) 55 618 600