Economic Measures Pass Through Parliament

Support for businesses in Australia Information, grants, services and support from across government to help your business succeed. The “Boosting Cash Flow for Employers” payment increased to a maximum of $100,000 (details provided yesterday) Increased instant asset write-off for businesses with aggregated annual turnover of less than $500 million to $150,000 (12 March to 30 […]

Support for businesses in Australia

Information, grants, services and support from across government to help your business succeed.

  • The “Boosting Cash Flow for Employers” payment increased to a maximum of $100,000 (details provided yesterday)
  • Increased instant asset write-off for businesses with aggregated annual turnover of less than $500 million to $150,000 (12 March to 30 June 2020)
  • Accelerated depreciation for businesses with aggregated turnover of less than $500 million – 50% tax deduction for assets first used or installed ready for use between 12 March 2020 and 30 June 2021 and the balance subject to existing depreciation rules
  • $7,000 per quarter in wage assistance for each apprentice’s wages paid from 1 January to 30 September 2020 – Register here
  • Economic support payment to households of $750 from 31 March 2020 (broadly Social Security any and Veteran recipients) with a second payment of $750 to be made on 13 July 2020 for recipients who are eligible on 10 July 2020 (unless they are eligible for the new Coronavirus Supplement)
  • Amendment to the Superannuation Industry Supervisory  and Retirement Savings Account Regulations to reduce the minimum payment amounts for account-based pensions (and equivalent annuity products) by half for the 2019/20 and 2020/21 financial years e.g. for those under age 65, the drawdown rate is reduced from 4% to 2%
  • Additional financial assistance to those receiving the Jobseeker Payment, Youth Allowance  and a range of other benefit recipients with a fortnightly supplement of $550, available for an initial 6 month period for those receiving the relevant payments on 27 April 2020
  • Individuals affected by the coronavirus can have two amounts of $10,000 (tax-free) released from their superannuation on compassionate grounds (e.g. unemployed, redundancy, working hours reduced by 20% or more) with one application for 2019/20 and one application for 2020/21
  • Temporary reduction in Social Security deeming rates from 1 May 2020 by a further 0.25% (the upper deeming rate  will be 2.25% and the lower deeming rate will be 0.25%)
  • Establishment of the Coronavirus SME Guarantee Scheme to guarantee 50% of new unsecured loans issued by eligible lenders to SMEs for working capital i.e. it will guarantee up to $20 billion to support $40 billion in SME loans (other measures supporting the flow of credit including by the Reserve Bank will follow)
  • Various measures to provide temporary relief for financially distressed businesses

Source: HLB Mann Judd

For more information visit: https://business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

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