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COVID-19 Update – Government Economic Stimulus Package

16 March 2020

As we monitor and learn more about the spread of COVID-19, we want to let you know what we’re doing as a company to protect our customers and employees.

First and foremost, if you choose to visit us at our office, please know that we are doing everything we can to keep our office germ-free and are practicing good hygiene measures. However, if you are uncomfortable with having a face to face meeting we can arrange to meet via the phone or online hosting services.

Scott Partners clients can be confident that we will remain fully operational and have measures in place to keep the team operational if required to work from home.

And of course our staff are following all quarantine measures that may be required by the Government in response to controlling the spread of COVID-19.

COVID-19 Economic Stimulus Package Announced

The Government has announced a $17.6 billion economic stimulus package to support the Australian economy and households while dealing with the significant challenges posed by the spread of the coronavirus, COVID-19.

The package has four parts:

1. Delivering support for business investment:

  • increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020
  • 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 accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.

 

2. Cash flow assistance for businesses:

  • businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020 will be able to receive a payment from $2,000 up to $25,000. The payment will be tax free and businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
  • eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

 

3. Stimulus payments to households to support growth:

  • provide a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders.

 

4. Assistance for severely-affected regions:

  • $1 billion to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.

 

Please do not hesitate to contact us at Scott Partners on (03) 8686-9000 to discuss any of the above further.

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