Australian Government announced Coronavirus Stimulus Package on 12th March 2020 to support the economy, business and employment in the face of the Coronavirus health crisis.

The measures include the below.

 

  • Cash Flow Boost for employers

Employers with annual turnover of under $50 million (based on prior year turnover) will receive from $2000 to $25,000. Eligible businesses will receive a payment equal to 50 % of PAYG tax withheld from employees’ wages up to $25,000.

Eligible businesses that pay wages will receive a minimum of $2000, even if they are not required to withhold tax.

The payment will be delivered as a credit from 28 April 2020 upon FY 2020 Q3 BAS Lodgment. ATO will deliver the refund within 14 days for any refunded amount.

 

  • Increasing the instant asset write off

 Threshold for the instant asset write off will increase from $30,000 to $150,000 and expand eligible business to annual turnover of up to $500 million from $50 million. The increase will only be available from 12 March to 30 June 2020 for new or second-hand assets first used or installed ready for use by 30 June 2020.

 

  • Accelerated deprecation

Accelerated deprecation deduction for eligible assets acquired from 12 March 2020 to 30 June 2021. Eligible businesses with turnover below $500 million will receive a deduction of 50 % of the cost of the asset on installation, with existing depreciation rules applying to the balance. Eligible assets are those that can depreciated under Division 40 of the Income Tax Assessment Act 1997 (that is plant, equipment and specified intangible assets, such as patents), but does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.

 

  • Apprentice and trainee wage subsidy

Businesses with less than 20 full-time will receive a subsidy of 50 % of an apprentice’s or trainee’s wage from 1 January to 30 September 2020. Employers of any size and Group Training Organisations that re-engage an eligible out-of-trade apprentice or trainee will continue to be eligible for the subsidy.

 

  • Direct payment to individuals

Eligible individuals will receive a $750 one-off payment. Eligible individuals include:

  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Carer Allowance
  • Parenting Payment
  • Wife Pension
  • Widow B Pension
  • ABSTUDY (Living Allowance)
  • Austudy
  • Bereavement Allowance
  • Newstart Allowance
  • Youth Allowance
  • Partner Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Farm Household Allowance
  • Family Tax Benefit A
  • Family Tax Benefit B
  • Double Orphan Pension
  • Veteran Service Pension
  • Veteran Income Support Supplement
  • Veteran Compensation payments, including lump sum payments
  • War Widow(er) Pension

You’ll also get the payment if you have 1 of the following concession cards:

  • Pensioner Concession Card
  • Commonwealth Seniors Health Card
  • Veteran Gold Card

You’ll only get 1 payment, even if you get more than 1 qualifying payment or card.

 

ATO support measures include the below.

 

  • Deferring by up to 4 months the payment date of BAS, including PAYG instalments, income tax assessments and FBT assessments.

 

  • Allowing quarterly reporting of GST instead of monthly in order to get quicker access to GST refunds.

 

  • Allowing businesses to vary PAYG instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.

 

 

  • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities

 

  • Allowing low interest payment plans to businesses who is currently paying their existing and tax liabilities.

 

Employers will still need to meet their super guarantee obligations for their employees.

 

Should you have any inquiry in regard to above matter, please do not hesitate to contact us.

 

Thank you.