The Australian Government has updated its economic stimulus package, which now totals $189 billion.
Increased Cashflow Assistance
Tax-free payments of up to $100,000 for eligible small and medium businesses based on their PAYG withholding obligations. This is not a cash payment, but it is a credit in the activity statement system equal to 100% of the PAYG amounts withheld from salary and wages paid to employees.
These payments will only be available to eligible employers established prior to 12 March 2020, and you need to have employees for whom you declare Wages and PAYG withholdings on your BAS.
If a business pays salary and wages to employees but is not required to withhold any tax, then a minimum payment of $10,000 will still be made in the period up June 2020, and a second minimum payment of $10,000 in the period after June 2020 and up to September 2020. These payments will be applied to the first activity statement lodged in each period.
Instant Deduction for Assets up to $150,000
An increase in the instant asset write-off scheme. The threshold jumps from $30,000 to $150,000 until 30 June 2020. The higher instant asset write of threshold applies on a per asset basis so eligible businesses can immediately write off multiple assets. The threshold is due to revert to $1,000 from 1 July 2020
Help to Pay Apprentices
A 50% wage subsidy for apprentices. 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
Unsecured Loan Finance
Business Lending Guarantee. The Government will provide a guarantee of 50% to Small and Medium Enterprise lenders for new unsecured 3-year loans of up to $250,000 per borrower to be used for working capital. These loans will be up to three years with an initial 6-month repayment holiday.