Coronavirus Government Stimulus package 12 March 2020 |
Most of you are likely aware of the government stimulus package that was announced today. Information is fairly scarce at the moment. The following is so far what we know that are of interest from a tax and business perspective:
1. $25k tax free payments for businesses with turnover of up to $50m/year.
- Min payment of $2k.
- 50%of tax witheld to the ATO on employee wages
2.Instant asset write off to increase to $150k (was $30K) -applies to business with turnover of less than $500m/year (used to be $50m/year).
3. Small business with less than 20 employees,will get up to $7k/quarter for every apprentice as wage subsidy.
- Employers will get up to 50% of apprentice/trainee's wage from Jan 1 to Sept 30.
- Apprentice must have been with small business as at March 1.
4. For pensioners, deeming rate cut by 50 basis points.
Important: Clients should not act solely on the basis of the material contained in this newsletter.Items herein are general comments only and do not constitute or convey advice per se.Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information.Therefore it should be regarded as confidential and not made available to any person without our prior approval.
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Director Summit Group, Aged Care Provider