CORONAVIRUS – ECONOMIC STIMULUS PACKAGE

During the past months, first bushfire, and now COVID-19 have created a big crisis among small businesses. The Australian Government has announced measures to support business impacted by coronavirus.

Below are some major takings from the announced economic measures:

Employers with employees and withholding tax payments will receive payments-  with employers set to receive a first payment equal to 100 percent of their salary and wages withheld, up to a maximum of $50,000,  when businesses lodge their activity statements for the 28 April and 28 July quarterly due dates. And another $50,000 in the new financial year to confront fears of widespread lay-offs. Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.

Instant asset write-off threshold, increasing from $30,000 to $150,000.

The government will provide a guarantee of 50% for new unsecured loans to be used for working capital.

The government will offer SMEs up to $21,000 per apprentice $7,000 per quarter for the first three quarters of 2020.

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