Amidst the chaos of the COVID-19, better known as the coronavirus, and concerns for Australia’s weakening economy, the Morrison government most recently released a “coronavirus stimulus package” largely targeted at stimulating the Australian economy through cash payments and tax relief for small to medium-sized businesses.
Worth more than $17 billion, the stimulus package is planned to be spread across this financial year as well as the next, with half of the package scheduled for release into the economy before June 30th. In order for an immediate boosting effect on the economy, some changes have already been implemented and here’s a breakdown for you below:
- Businesses can access an expanded instant asset write-off, from $30 000 to $150 000. This is to encourage immediate spending by businesses to improve cash flow.
- Small businesses with an annual turnover of less than $50 million can claim tax deductions. Such tax deductions can go up to $30 000 for company vehicles, tools, office equipment and the like.
- Small to medium businesses will receive cash payments between $2000 and $25 000 to help pay wages and increase the ability to employ extra staff. 700 000 small businesses will be given these cash payments, making up a significant portion of the package.
- Businesses hiring apprentices will also benefit from the support package – with $1.3 billion in support payments aimed to keep hundreds of thousands of apprentices employed.
- Larger businesses can also claim tax deductions. Up to $150 000 can be tax deducted for businesses with an annual turnover rate of up to $500 million.
- Cash payments of up to $500 will also be paid to welfare recipients and pensioners to encourage more spending.