Over the past couple of days there has been a significant increase in news covering the coronavirus (COVID-19) outbreak as the situation continues to evolve.
In response to the situation the Federal Government has announced a $17.6 billion stimulus plan to curb the economic impact of the coronavirus and keep Australians in jobs and businesses open.
For business this includes:
Business investment support
The threshold for the instant asset write-off will be increased from $30,000 to $150,000, and expanded to include businesses with an annual turnover up to $500 million for purchases from 12 March 2020 to 30 June 2020.
Allocation of $3.2 billion to back business investment by providing a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term by allowing businesses with a turnover of less than $500 million to deduct an additional 50 per cent of the asset cost in the year of purchase.
Cash flow assistance for businesses
Businesses with turnover up to $50 million will receive a tax-free cash flow boost worth between $2,000 and $25,000, between 1 January 2020 and 30 June 2020.
Small businesses with fewer than 20 full-time employees are set to receive up to $7,000 in wage assistance for each apprentice per quarter over the next six months.
Assistance for severely affected regions
A $1 billion regional and community fund aimed to assist those in the most impacted industries such as tourism and export will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and Commonwealth National Parks. It will also include additional assistance to help businesses identify alternative export markets or supply chains.
Cash flow assistance for individuals
A $750 one-off cash payment for a broad set of welfare recipients will commence being paid directly in to bank accounts at the end of this month through to mid April.
The Government is also offering relief for certain tax obligations, including the deferral of tax payments for up to 4 months. This relief will be considered on a case by case basis.
The above measures are subject to the passage of legislation; Parliament is sitting next on 23 – 26 March 2020.
MWM’s team are closely monitoring the situation in sync with the stimulus announcement and are here to assist you with a level headed approach to help your business through the potential challenging times ahead.
If you have any questions about the stimulus package and how it may affect you, or any other issues about business continuity planning please contact us today at mwmadvisory.com.au/contact or call 07 5596 9070 to speak to your accountant.