On 12 March 2020 the Morrison government announced the details of it’s coronavirus stimulus package designed to support confidence, boost investment and keep Australians in jobs.
Here are the six key elements of the government’s plan:
An increase in the instant asset write-off scheme. The threshold jumps from $30,000 to $150,000 until 30 June 2020.
A 50% accelerated depreciation deduction. Business will be able to deduct 50% of the cost of an eligible asset on installation.
Payments of up to $25,000 for businesses with a turnover of up to $50 million. This will be delivered when IAS’s and BAS’s reporting wages between January 1 and June 30 2020 are lodged . 50% of the reported PAYG will be reduced up to $25,000. Those that pay wages but are not required to withhold PAYG are likely to receive a minimum payment of $2,000.
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
A one-off stimulus payment of $750 for people receiving benefit payments. This includes pensioners and those on Newstart, the disability support pension, carers’ allowance, youth allowance, veterans support payments and family tax benefits.
A regional and community support fund. This will support businesses and communities who Morrison said would be particularly affected by an economic downturn.
Caution – These announcements are not yet Law.
A package of Bills will be introduced into Parliament in the final Autumn sitting week in March 2020 for Parliament’s urgent consideration and passage.