Updated: 13.3.2020

Governments Economic Stimulus Package

SME Cash Boost
• For Businesses with turnover < $50Mill, that employ staff
• Receive Payments up to $25,000 Tax Free (with a minimum of $2K)
• Calculation based on 50% of the amount withheld on employees' wages, up to the maximum of $25,000
• Delivered as a Credit in the Activity Statement system from 28/04/2020
• Employers who lodge Quarterly BAS' – applies to March and June 2020 Quarters
• Employers who lodge Monthly IAS' – applies to March, April, May, June 2020 period
• Eligible businesses that pay wages will receive a minimum payment of $2,000, even if they are not required to withhold tax

Extension to the Instant Write Off
• Increase in the instant asset write-off threshold rising from $30,000 to $150,000
• The instant write-off measure will be expanded to businesses with a turnover of <$500Mill, (previously <$50Mill)
• Set to be in place: 12th March 2020
• The expanded measure will only run until 30 June 2020

Accelerated Depreciation
• Applies to Businesses with Turnover <$500Mill
• Set to be in place: 12th March 2020
• Benefit - deduction of 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the assets cost
• Eligible assets are those subject to Div 40 of ITAA 1997 (Plant / Equipment) but does not apply to second hand – Div 40 assets, or buildings and other capital works under Div 43
• Business to receive a Deduction of 50% of the cost of the eligible asset on installation, with existing depreciation rules applying to the balance
• Value of the eligible asset is uncapped
• Measure in place 15 months, until 30 June 2021 (asset must be first used/installed before this date)

Apprentice and Trainee Wage Subsidy
• Wage subsidy to employers of 50% of the apprentice/trainee's wage
• Applies from 1 January to 30 September 2020
• Capped at $7,000 per Quarter, per apprentice/trainee
• Eligible businesses <20 Full Time Staff

Direct Payments to Individuals
• A one-off payment of $750 to 6.5 mill social security, veteran's and other income support recipients and eligible concession card holders

Other proposed ATO measures for Businesses
• Up to 4 months deferral of the payment date of amounts due through the BAS, including PAYG Instalments, Income Tax Assessments, FBT and excise
• Allow quarterly GST reporting businesses to opt into Monthly GST reporting in order to get quicker access to GST refunds
• Businesses can vary PAYG Instalments to zero for the March 2020 quarter
• Businesses that vary their PAYG Instalment to zero will also be allowed to claim a refund for any instalments made for the September 2019 and December 2019 quarters
• Some relief to interest / penalties, and offering of low – interest payment plans
• However, be aware that business relief measures will not be automatically implemented – Businesses and their advisers are required to contact the ATO on its 1800 806 218 Emergency Support Infoline to discuss their situation

Notes:
• The measures have a start date from 12 March 2020 but will still be subject to the passage of legislation
• Shadow Treasurer has since advised that Labor will not stand in the way of the Governments measures