The Prime Minister announced the details of a $17.6 billion stimulus package to support businesses being disrupted by COVID-19.
The stimulus covers five main categories:
- Increased small business write off
- Cash flow assistance for wages
- Additional apprentice wages support
- Government support families
- Grant for tourism, agriculture and education
Increased Small Business Write-Off
The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.
Apprentice Wages Support
If your business employs apprentices, a wage subsidy of 50% maybe available for up to nine months. The period being from 1 January 2020 to 30 September 2020. This will be capped at $21,000 per apprentice and split over three quarters.
Government Support Families
From 31 March, one-off payments of $750 to people on social security, veteran and other income support recipients and eligible concession card holders. The payment will be tax-free and will not count as income for social security, farm household allowance and veteran payments.
Grants for Tourism, Agriculture and Education
Targeted support for the tourism, agriculture and education sectors at this stage. Tourism will be target at domestic.
This support will include waiving fees and charges for business operating in the Great Barrier Reef Marine Park, and in other national parks, plus assistance in identifying new export markets and supply chains.
