March 12 – COVID-19 government economic stimulus package
This is an evolving situation and we will keep our clients updated as things changes. Please see our website article published on 17 March 2020 for up to date information.
Earlier today the Federal Government announced a stimulus package in response to the economic effects of COVID-19 (Coronavirus). Some key points of the package that we believe may be of particular interest to our business clients are listed below:
- Increasing the instant asset write off to include expenditure on assets up to $150,000. This extension will apply from today until 30 June 2020;
- The $150,000 write off aggregated turnover threshold will be increased from $50M to $500M for this short period;
- Tax-free payments of a maximum of $25,000 to businesses with turnover less than $50M who have employees;
- Subsidies for businesses employing apprentices.
We encourage you to look through all details of the stimulus package, particularly if you feel your business may be financially impacted by the virus. Details of the package are available at https://treasury.gov.au/sites/default/files/2020-03/Overview-Economic_Response_to_the_Coronavirus.pdf
There is also a fact sheet on cash flow assistance for businesses available at https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Assistance_for_businesses.pdf
We note that the above measures are subject to the passage of legislation. We anticipate this will occur quickly, and will update on our website when this occurs.
On a local level the Tasmanian Chamber of Commerce and Industry have released COVID-19 Business Resources, including links and contact phone numbers for relevant government departments and information. Visit http://www.tcci.com.au/Services/COVID-19-Business-Resources to find out more.