Economic Response to the Coronavirus

In light of recent events and the significant challenges posed by the spread of the coronavirus, the Australian government has moved quickly to put in place a $17.6 billion economic plan to keep Australians in jobs, keep businesses in businesses and support households

What does this mean for you?

Businesses (with a turnover less than $50 million) that employ staff between 1 January 2020 and 30 June 2020 will receive payments equal to 50% of the amount withheld, up to a maximum payment of $25,000. Eligible businesses will receive a minimum payment of $2,000 even if they are not required to withhold tax. A credit will be deducted (and where necessary a refund remitted) from your March 2020 and June 2020 BASs based on the PAYG withheld in those BASs.
From 12 March 2020, the instant asset write off threshold has increased from $30,000 to $150,000 (for businesses with a turnover less than $500 million) until 30 June 2020. For assets exceeding $150,000, 50% of the cost can be claimed as a deduction in the year or purchase and the balance then depreciated as normal in the following years.
Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice. Employers will be able to register for the subsidy from early April 2020.
A one-off $750 tax free stimulus payment will be provided to pensioners, social security, veteran and other income support recipients and eligible concession card holders. Payments will commence automatically from 31 March 2020 to mid April.