COVID-19

The COVID-19 global pandemic has affected so many lives and has shaken the global economy. The Australian Government has put into place over $130 billion in stimulus package to aid businesses in maintaining cash flow and employees in these difficult times. These are very difficult times for many businesses and individuals and these stimulus packages aim to temporarily provide relief for many Australians

JobKeeper Payment

The JobKeeper payments allow businesses affected by the COVID-19 outbreak to access this subsidy from the Government in order to maintain employee payments. Eligible employers will be able to claim a fortnightly payment of $1,500 to pay each of their eligible employees starting from the 30 March 2020.

Cash Flow Boost for Small and Medium Businesses

The Government has announced a cash flow boost of up to $100,000 for small and medium sized businesses. This cash flow boost aims at allowing businesses to maintain their cash flow to ensure bills, rent and employee payments are still paid during these difficult times.

The cash flow boost will be implemented in two stages, with stage one of the cash flow boost to be delivered from the 28 April 2020 through PAYG Withholding credits on the Business Activity Statement.

Increase to Instant Asset Write-Off

The Government has announced that the instant asset write-off threshold will be increased from $30,000 to $150,000 up to 30 June 2020. More businesses will also have access to the increased write-off threshold as the aggregated annual turnover test has been increased to $500 million, up from $50 million.

Backing Business Investment

Businesses with an aggregated annual turnover of less than $500 million are able to accelerate the depreciation deduction on certain assets purchased within a specific timeframe within the COVID-19 pandemic. Assets purchased, installed and ready to use from 12 March 2020 to 30 June 2021 will be able to have their depreciation deduction accelerated.

Please get in touch with us if you would like more information on any of the above mentioned COVID-19 Stimulus Packages and how your business may be affected