Corona Virus -Government Assistance

This what governments have brought in. There are other things for individuals also but I have focused on businesses for now.

Firstly the state government has proposed 3 measures for small business

$17,500 grants for business with a payroll between $1million & $4 million(Grants will automatically be paid by cheque from July but employers should make sure their postal addresses are up to date on Revenue Online);jsessionid=W4UFKeNVu4sObpiAUEO974tohCuGYqPhYtdhBbCcTIi0gti_oIIy!1639186804?_afrLoop=61925932891300&_afrWindowMode=0&_afrWindowId=null&_adf.ctrl-state=1brdh2hroy_1
The $1 million payroll tax threshold(announced in October 2019) will be brought forward by 6 months to 1 July 2020
Businesses impacted by COVID-19 can apply now to defer payment of their 2019/20 payroll tax until 21 July 2020

Additionally the Commonwealth Government on 12th March & 22nd March 2020 announced stimulus packages to support the Australian economy. The main areas of support for businesses are

Cash flow payment of up to $100,000 for employers
50% wages subsidy for apprentices & trainees
Increase in the instant asset write-off threshold to $150,000
50% accelerated depreciation for investments
Coronavirus SME Guarantee Scheme

Cash flow payment for employers

Employers will receive a payment equal to 100% of their salary & wages tax withheld with the maximum payment being increased from $25,000 to $50,000.The payment will be available from 28 April 2020.Eligible employers are those with an aggregated turnover under $50 million & they must employ workers.

Wage subsidy for apprentices & Trainees

Eligible employers can apply for a wage subsidy of 50% of the apprentices or trainees wages paid during the 9 months from 1 January 2020 to 30 September 2020.Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee.The subsidy will be available to small business employing fewer than 20 full-time employees who retain an apprentice or trainee.The apprentice or trainee must have been in training with a small business at 1 March 2020.

Increase in the instant asset write-off threshold

The instant asset threshold will be increased from $30,000 to $150,000.The higher threshold is in place from 12 March until 30 June 2020.Businesses eligible are those with turnover of less than $500 million(up from $50 million).Instant asset write off is claimed back via your business tax return.

Accelerated depreciation for investments

Businesses will be able to deduct an additional 50% of an asset cost in the year of purchase from 12 March 2020 until 30 June 2021.Eligible assets are those with a turnover less than $500 million purchasing new assets,second hand assets are not available for this initiative & it covers assets under Div. 40 of the ITAA 1997

Coronavirus SME Guarantee Scheme

Under the scheme the Government will provide a guarantee of 50% to small & medium enterprise(SME) lenders for new unsecured loans to be used for working capital.This is meant to enhance these lenders willingness & ability to provide credit.

Max size of loans is $250,000 per borrower
The loans will be up to 3 years,with an initial six month holiday
The loans will be in the form of unsecured finance,meaning that borrowers will not have to provide an asset as security for the loan

If you would like to discuss any of the above or want further advice please feel free to call me.