The Australian Government announced their first stimulus package on 12 March 2020, in response to the spread of corona virus. The focus of this stimulus package is to protect our economy by helping small to medium businesses to stay in business and keeping employees in their jobs and applies from the date of announcement. Please see below the assistance offered to small to medium businesses:
Increasing the instant asset write-off and backing business investment
- The government has increased the instant asset write-off from $30,000 to $150,000 for all businesses with aggregated annual turnover of less than $500 million (this figure has also been increased from $50 million to include more businesses) until 30 June 2020
- A time limited 15-month investment incentive (expiring 30 June 2021) was introduced to accelerate depreciation deductions. Businesses with aggregated annual turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase (with existing depreciation rules to apply to the balance)
Cashflow assistance for employers and support for apprentices and trainees
- Employers that employee apprentices or trainees (and have less than 20 full-time employees) may be eligible to apply for Government funded wage subsidies for 50% of their apprentice/trainee’s wage for up to 9 months (1 January to 30 September 2020)
If you require assistance in relation to accessing the various small business assistance packages, please contact the team at Bizally on (03) 9887 9144.