Coronavirus Stimulus Package (Pending Legislation)
You would have heard talk of the Government assisting businesses to help the economy withstand and recover from the impact of the Coronavirus. This is how it may assist your business;
Small Business Instant Asset Write Off – currently assets below $30,000 are able to be claimed in full until June 30th, 2020 – this may be increased to $150,000. Note, if you don’t purchase an asset and your Small Business Pool balance is below $150,000, this balance will also be written off!
Eligible Employers – a credit on your business activity statement account will be issued from 28 April 2020. The amount will be 50% of your tax withholding amounts paid between January 2020 and June 2020. The payment is “tax-free” and is capped at $25,000. You will see the credits apply in two amounts, once after the March 2020 BAS is lodged and another after the June 2020 BAS is lodged.
Employers of Apprentices and Trainees – Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wages paid during the 9 months from 1 January 2020 to 30 September 2020. The maximum reimbursement is $21,000 per apprentice/trainee. Available to small business employers with less than 20 full time employees. The apprentice/trainee will already be employed (from 1 March 2020). Registering for the subsidy will be from 2 April 2020 (final claims must be lodged by 31 December 2020).
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advise to independently verify their interpretation and the information's applicability to their particular circumstances.
