The Australian Government has been announcing financial measures in the past week to promote continued support of small business, however, at this stage, they are announcements only and we are waiting for legislation to be passed through parliament to find out exactly how our clients may be able to access these stimulus packages.
Up to $25,000 for small businesses who employ staff:
please note that we do not anticipate this to be a direct cash injection into the bank accounts of clients, more likely this will come as a reduction of amounts you owe to the ATO with relation to tax withheld from your employees’ regular wages;
There also isn’t much information with regard to what period of time this will be actioned, our expectation is that the limit will be $25,000 and small business owners will be able to access this reduction across the next three or four financial quarters through their BAS and IAS lodgements.
Apprentices 50% wage subsidy:
From 1 January 2020 to 30 September 2020 small business are eligible to receive a 50% wage subsidy for any apprentices they employ;
We expect that this will require an application on behalf of any and all apprentices you employ;
We expect that you will still need to pay your apprentices in full, and would then receive a 50% rebate back from the Government when evidence is shown to prove payments have been made.
$150,000 instant asset write off:
This would come as an increase to the current small business Instant Asset Tax Write-off which is currently $30,000 (including GST) for any singular identifiable asset;
This increase at this stage is being made available for any assets purchased and ready for use by 30 June 2020;
This allowance will be available for businesses with a turnover of up to $500 million now instead of the previous threshold of $50 million;
Please note however that we don’t anticipate the ATO changing the rule for ‘cars’ that are bound by the car cost limit of $57,581 for maximum depreciation amount.
Additional depreciation allowance for assets that exceed the Instant Asset Write off threshold of $150,000 up to 30 June 2020, and assets that exceed $30,000 from 1 July 2020 to 30 June 2021:
Additional 50% depreciation deduction on top of normal tax write off allowances for assets that fit the above criteria.
$750 one-off payment to lower-income Australians:
It has been proposed that certain individuals and couples who currently receive a support payment from Government and reside in Australia will receive a one-off $750 payment;
This will be applicable for pensioners, other social security and veteran income support recipients as well as other concession cardholders as of 12 March 2020.
Please note the above are only proposed at this stage, we are yet to see confirmed policy and will keep you informed when this is known.
Phillips Wealth Partners.
It is our job to help individuals and families navigate the aged care system to find the best solution for loved ones who need support to stay at home or are ready to take the next step into residential aged care or retirement living. Contact us on 0422 004 198 or visit www.phillipswp.com.au