COVID19 Economic Stimulus

COVID19 Economic Stimulus

12:29 17 March in SMSF

To all our valued Clients and Supporters,

Following on from our most recent communications to you late last week, we wanted to provide you with further information on the impact of COVID-19 to you, your business and the greater community as we see it.

We have taken the opportunity over the weekend to review and dissect the information provided by the Australian Government pertaining to the Economic Stimulus package released on Thursday 12/03/2020. We are aware of the latest announcement that the Australian Government is working on a second stimulus package, we will communicate this to you our valued clients as the information comes to hand.

Federal Economic Stimulus Package – Released 12th March 2020 – What does this mean to me?

BUSINESS OWNERS

1.  Up to $25,000.00 received as a credit against the ATO Integrated Client on 50% of the tax withheld from employees’ wages for the period 1st January 2020 to 30th June 2020.
2.  If you lodge monthly IAS, then the ATO will take the PAYGW on the March BAS and credit 150% of the total (up to maximum).
3.  Instant Asset Write off for Assets purchased and installed ready for use between 12/03/2020 and 30/06/2020 to the value of $150,000.00 net of GST
4.  Limited time investment incentive for assets purchased and installed ready for use between 12/03/2020 to 30/06/2021 for assets with a value over $150,000 net of GST. This will be done through accelerating the depreciation deduction in the first year to 50% of the Assets Value reverting to normal depreciation rates in the second and subsequent years.
5.  For employers of apprentices and trainees, there will be a 50% wage subsidy on apprentice or trainee wages paid between 1/1/2020 to 30/09/2020. Where an already engage apprentice or trainee is required to change place of employment the subsidy will transfer to the new employer from the employee start date. This will need to be applied for.

INDIVIDUALS

1. $750.00 cash payment to be issued to individuals in receipt of the following government payments as at 12/03/2020. Payments of this stimulus payment will begin to issue automatically from 31/03/2020. Eligible government payments are as follows:

– Aged Pension
– Disability Support Pension
– Carer Pension
– Wife Pension
– Widow B Pension
– ABSTUDY (Living Allowance)
– Austudy
– Bereavement Leave
– Newstart Allowance
– Youth Allowance
– Partner Allowance
– Sickness Allowance
– Special Benefit
– Widow Allowance
– Family Tax Benefit; including double orphan pension
– Carer Allowance
– Pensioner Concession Card Holders
– Commonwealth Senior Card Holders
– Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments;
– Veteran Gold Card Holders
– Farm Household Assistance

The latest news we have is the Australian Government is currently working on a second stimulus package, we expect that there will be further details released in the coming days with the hope that it is brought before parliament and passed in the next sitting scheduled for Monday 23th March 2020.

State Economic Stimulus Package – Released 16th March 2020 – What does this mean to me?

BUSINESS OWNERS

  1. Payroll tax paying businesses with a payroll between $1 million and $4 million will receive a one-off grant of $17,500. You do not have to do anything; this will be paid by Cheque from 01/07/2020.
  2. $1 million payroll tax threshold brought forward by six months to July 1, 2020
  3. Small and medium sized businesses affected by COVID-19 can now apply to defer payment of their 2019-20 payroll tax until July 21, 2020

INDIVIDUALS

1. A freeze on fees and charges for the following:

– Electricity
– Water
– Public Transport
– Motor Vehicle Charges
– Emergency Services Levies

2. The energy assistance payment for eligible Western Australian’s double to $600.00

Supervision has created a COVID19 Business Contingency Plan for businesses of all types and sizes.  To put together a professional plan for your team and business, please call our offices today.