In response to the Coronavirus threat, the Government announced a $17.6B economic stimulus package, expected to become law when parliament sits from the 23 March 2020. The package has been designed to protect the economy by maintaining confidence, supporting investment and keeping people in jobs.
The key tax measures that may affect our business clients include:
- New instant asset write-off threshold until 30 June 2020 – increased from $30,000 for businesses with aggregated turnover of less than $50M to $150,000 for businesses with aggregated turnover of less than $500M from 12 March 2020.
- 15-month investment incentive until 30 June 2021 – for new depreciating assets installed ready for use before this date by businesses with aggregated turnover of less than $500M, an immediate 50% deduction of the cost of the eligible asset, with existing depreciating rules applying to the balance of the asset’s cost.
- Tax-free subsidies of up to $25,000 through the PAYG withholding tax system – businesses with aggregated turnover of less than $50M will receive a credit of 50% of the amount withheld from their employees’ salary and wages in their activity statements (from 28 April 2020 for quarterly lodgers and March 2020 for monthly lodgers) up to a maximum credit of $25,000, with any excess refundable within 14 days.
- Other measures – 50% wage subsidies to employers with less than 20 full-time employees for apprentices; assistance to severely affected regions reliant on industries such as tourism, agriculture and education; and administrative relief from the ATO for certain tax obligations on a case-by-case basis.
We need to wait for the measures to become law first, but if you have any queries, please email or call our office on 03 9523 6500 to discuss further.