The Australian Government has announced a $17.6 billion economic response to address the economic impacts of the Coronavirus outbreak. The response is intended to support confidence, employment and business continuity. Key measures include:
SUPPORTING BUSINESS INVESTMENT
Increasing the instant asset write-off – Effective immediately, the instant asset write-off threshold has been increased from $30,000 to $150,000. Access has been extended to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Backing business investment – A time limited 15-month investment incentive (through to 30 June 2021) has been introduced to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
CASH FLOW ASSISTANCE FOR BUSINESS
Boosting cash flow for employers – This measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff. The payment will be tax free.
Supporting apprentices and trainees – Eligible employers can apply for a wage subsidy of 50% the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
STIMULUS PAYMENTS TO HOUSEHOLDS
A one-off payment of $750 will be provided to social security, veteran and other income support recipients and eligible concession card holders. There will be one payment per eligible recipient. The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and Veteran payments.
SUPPORT FOR CORONAVIRUS-AFFECTED REGIONS & COMMUNITIES
$1 billion will be used to support those regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.