Learn more about the $17.6 billion economic stimulus package in response to the Coronavirus.
In addition to the obvious health threats, the COVID-19 coronavirus continues to dominate headlines, decimate financial markets, disrupt public events putting whole sporting leagues on hiatus and has now even closed borders.
The economic impacts of this are already being felt and will no doubt continue to weigh on the economy both locally and internationally. In response to this, the Government has announced their economic stimulus package, which in the words of Scott Morrison is a “targeted stimulus package… focused on keeping Australians in jobs and helping small and medium sized businesses to stay in business”.
In summary, the package contains the following assistance and incentives:
- Cash flow support for small and medium businesses with employees. Minimum payment of $2,000 and a subsidy for 50% of PAYG withheld from wages, capped at $25,000. This applies from April to June 2020.
- Apprentice and trainee wage subsidies for small businesses with less than 20 full time employees who employ apprentices and trainees. The subsidy is half the wage of an eligible employee, capped at $21,000 per apprentice/trainee. The subsidy applies for the 9 months to 31 December 2020 and that employee had to be eligible with the business at 1 March 2020.
- Instant asset write-off is increased to $150,000 for businesses that turnover less than $500 million and purchase assets before 30 June 2020. The threshold applies on a per asset basis.
- Accelerated depreciation deductions for new depreciable assets purchased and installed prior to 30 June 2021 for businesses with turnover less than $500 million. There is a deduction of 50% of the cost of an asset, with normal depreciation applying to the balance.
- Stimulus payments to households: one-off payments of $750 to lower-income Australians who receive certain social security payments.
- Assistance for severely affected regions: $1 billion is set aside to support regions and communities disproportionately affected, including those with heavy reliance on tourism, agriculture and education.