Beefed up instant asset write-off and tax-free cash payments to small and medium businesses
The Morrison Government has announced measures to try and stabilise the Australian economy. It was announced a $17.6 billion economic plan would assist in keeping Australians in jobs and support small business and households alike.
Changes to the instant asset write-off threshold
The instant asset write-off threshold has been increased to $150,000 (up from $30,000). Access to the write-off will also be expanded to include businesses with annual turnover of less than $500 million (up from $50 million). The expanded measure will only run until 30 June 2020.
So, if you’ve been thinking about buying a big-ticket item, this incentive might be right for you.
Small and medium business cash boost
The government will also rollout a measure that will see businesses with turnover of less than $50 million receive payments of up to $25,000 tax free, with a minimum payment of $2,000. These payments will be 50% of the amount withheld on employees’ salary and wages.
The measure will be delivered by the ATO as a credit in the activity statement system from 28 April 2020 upon businesses lodging upcoming activity statements.
Employers with less than 20 full-time employees may be able to request a government subsidy of up to 50% of any wages paid to apprentices and trainees for up to nine months back dated to 1st of January 2020 and to end on 30 September 2020. Registration for the subsidy will be open early April 2020 with a maximum subsidy of $21,000 per apprentice/trainee.
Stimulus payments to households to support growth
There will be a $750 support payment to pensioners, other income support recipients, including eligible concession card holders. This payment will be tax free and not counted for income testing purposes. These payments are expected to start rolling out as early as 31 March 2020.
You can contact us if you have any questions about the Government stimulus package.