COVID-19 STIMULUS PACKAGE: WHAT IT MEANS FOR YOUR BUSINESS
On 11 March 2020, the World Health Organisation (WHO) declared COVID-19 a pandemic and with it came the worst economic crisis the world has faced since the Global Financial Crisis in 2008.
As the Coronavirus COVID-19 situation continues to evolve in Australia and globally at an alarming rate, the full impact on the Australian economy will not be known for some time. A Roy Morgan survey in mid-March found that 3 out of 5 Australian businesses (60%) had already been affected by the virus and no doubt the number of impacted businesses will continue to increase.
Over the coming months, individuals, households, not-for-profits and small businesses will face unprecedented uncertainty as the pressure on the economy and essential services intensifies. In response to the crisis, the Federal Government announced two stimulus packages. The total support package of $83.6 billion was rushed through parliament on the 23rd March 2020.
Here’s a snapshot of the key stimulus relief packages available to assist Australian businesses through the COVID-19 crisis:
- Boosting cashflow for employers with up to $100,000 PAYG refund available per business.
- Wage subsidies are available for apprentice and trainees.
- Payroll tax concessions are available in each state and territory.
- Businesses with a turnover of less than $500 million will be able to claim 50% depreciation deductions on new assets acquired and installed for use by 30 June 2021.
- Instant write-off threshold increased to $150,000 for businesses with a turnover of less than $500 million until 30 June 2020.
- Various tax supports, deferrals and concessions are available.
- Deferral of small business (those with debts under $3 million) loan repayments for up to six months.
- The Government will provide 50% guarantee on new unsecured loans (up to $250,000) for businesses with turnover under $50 million through the SME Guarantee Scheme.
- Each state and territory have also announced stimulus packages to assist businesses in its jurisdictions.
For further details on the stimulus relief package, please refer to “COVID -19: Stimulus Packages for Businesses”.
Trident Financial Group will stand by our clients through these uncertain times. With specialists across business risk, business continuity, tax, compliance and restructuring, we are here to help you.
Please contact us on 03 9899 4036 or email email@example.com if you require assistance with accessing the stimulus package.