Amid the W.H.O officially declaring a global pandemic the Australian Government has released the details of the stimulus package that has been put in place to prevent a recession.
The stimulus package winners are:
$750 Cash payments
Those receiving government benefits including those on Newstart, the Disability Support Pensions, Carers’ Allowance, Youth Allowance, Veterans support payments, Family Tax Benefits and Commonwealth Senior health care card holders will be receiving a $750 non-taxable cash payment from 31 March.
$550 Coronavirus Supplement
Those receiving certain government benefits are eligible to receive a $550 Coronavirus Supplement ontop of their current Centrelink Benefit. It's important to note that this is TAXABLE, so ensure you're putting a little bit aside for the extra tax you may need to pay.
The Government is also offering small businesses with fewer than 20 employees, up to $21,000 in wage assistance to hold onto their existing apprentices and trainees, this will fund apprentice wages for up to nine months with the Government’s aim of keeping them in a job.
Tax Relief for Businesses
The government have released two measures to boost cashflow to small and medium sized businesses.
The first is a payment of up to $25,000 that employ people and have a turnover of up to $50 million. This tax-free payment will be delivered automatically through the tax system so no forms will be required.
The second is the apprenticeship and trainee support mentioned above.
Plus, from now until 30 June, any asset purchase including a truck, tractor or shop fit-out can be written off immediately with the instant asset write-off threshold being lifted to $150,00 and access expanded to businesses with an annual turnover of $500 million.
In addition to this, for the next 15 months the Government is also increasing depreciation deductions by 50%. This is available until 30 June 2021.
(Updated 20th March)
Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.