Coronavirus Stimulus Package

CORONAVIRUS STIMULUS PACKAGE

1. Business Investment Support

• From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 to $150,000 for businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
• A time-limited 15 month investment incentive until 30 June 2021 that will allow accelerated depreciation deductions. A business with a turnover of less that $500 million will be able to deduct 50% of the cost of a new eligible asset on installation with existing depreciation rules applying to the balance of the asset’s cost.

2. Cash Flow Assistance for Business

• Tax free payments of up to $25,000 (minimum of $2,000) for businesses with an annual turnover of less than $50 million that employ staff. Eligibility will be based on their PAYG withholding obligations and covers the period from 1 January to 30 June 2020.
• A wage subsidy (for employers employing less than 20 employees) of 50% of an apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a business is unable to retain an apprentice, the subsidy will also be available to the apprentice’s new employer.

3. Household Support

• The Government will provide a one-off $750 payment to social security, veteran and other income support recipients and eligible concession card holders. It is expected that half of those who will benefit will be pensioners. The payment will be tax free and will not count as income for other social security benefits. Payments are expected to be made from 31 March 2020.
• Administrative relief from some tax obligations will also be provided for people affected by the Coronavirus outbreak. This will be on a case-by-case basis with the ATO setting up a temporary shop front in Cairns and enhancing its presence in other regions to make it easier for people to apply for relief.

4. Severely Affected Regions

• The Government has set aside $1 billion to support regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus. In particular those industries heavily reliant on tourism, agriculture and education.
• Support will include waiving fees for tourism businesses that operate in the Great Barrier Reef Marine Park and the waiver of entry fees to Commonwealth National Parks.
• Targeted measures will assist businesses identify alternative export markets or supply chains and the promotion of domestic tourism.

Implementation

The Government is moving quickly to implement their stimulus package with the Bills expected to be introduced to Parliament in the final sitting week in March 2020 for urgent consideration and passage. Further details of the proposed measures are expected when the Bills are drafted.