Australian Government Stimulus Package 2020

First it was the Australian bushfire season, now it’s a global pandemic. Australian’s are tough and we will get through this but we all need to stick together and work together.

 COVID-19 has officially been declared a global pandemic by the World Health Organisation (WHO) and the reaction across the globe has been swift – self quarantine, reduced foot traffic, reduced gatherings and minimal social interactions are all key steps countries are taking to reduce the impact of the virus.

This will no doubt have an impact on the Australian economy, and many are already feeling this impact in their business. So, what is being done to support businesses?

The Morrison Government has announced a $17.6 billion economic plan with the vision of support every Australian where possible. It sounds great but, what does it mean for your trade business? There are 3 announcements which apply to the tradies and here they are:

Delivering support for Business investment:

• Instant Asset Write Off increase from $30,000 to $150,000
• Time limited 15-month investment incentive (through to 30 June 2021)
• This incentive accelerates depreciation deductions by enabling businesses to purchase items greater than $150,000 and deduce an additional 50% off the asset cost in the year of purchase.

Cash flow assistance for businesses under $50 million turnover per year

• Up to $25,000 with a minimum payment of $2,000 to small and medium-sized businesses
• 50% of the apprentice’s salary or trainee’s wage for up to 9 months from 1 January 2020
• Businesses will receive the payment of 50% of their BAS from 28th April.
• Refunds to be paid within 14 days

This is an ever changing situation and it is important to stay up to date with the latest Federal programs, as well as those offered by each as NSW,  Western Australia & South Australia already have.

How do you get access to the stimulus package?

Although you will automatically enrolled in some of the sections of the stimulus packages through your BAS, we recommend you speak with your accountant as soon as possible to ensure you can maximise your access to the stimulus package.

If you do not have access to an accountant, speak with one of our partners who can support you through the process.

Resourceful Links:

Australian Government Stimulus Package: https://www.pm.gov.au/media/economic-stimulus-package

ATO Support: https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-detail/Specific-disasters/COVID-19/