Outlined below is a summary of some of the key measures announced for business. For more details about these measures we encourage you to speak to your accountant or tax-advisor.
Small business loans – relief package
Australian banks will provide support to eligible small businesses by deferring loan payments for up to six months, where assistance is required as a result of COVID-19.
Coronavirus Guarantee Scheme
The Coronavirus Guarantee Scheme will provide a Government guarantee of 50% of the value of new loans issued by eligible lenders to small and medium sized businesses.
Additional lump sum payments to employers
Small and medium sized businesses and not-for-profit organisations that employ people will receive a payment of between $20,000 and $100,000 to assist with operating expenses.
The Government had previously announced payments to business linked to withholding tax for employees. This measure has been amended to double the amounts that eligible employers can receive. The amount depends on whether the business is required to withhold tax on salary and wages for employees.
Instant asset write-off
From 12 March 2020, the instant write-off threshold will increase from $30,000 to $150,000. It has also been broadened and will be available to businesses with an annual turnover of up to $500 million for the current financial year (an increase from $50 million). This applies to new or second-hand assets used or installed ready for use by 30 June 2020. The increased write-off threshold will apply on a per asset basis until 30 June 2020.
Accelerated depreciation of 50% will apply to eligible assets until 30 June 2021. Eligible assets are those acquired after the announcement and are used or installed ready for use by 30 June 2021. However, it does not apply to second-hand assets, building or other capital works deductible under separate tax provisions. This concession will be available to business with aggregated turnover of less than $500 million.
Employers with apprentices & trainees
Eligible employers who employ apprentices or trainees can apply for a subsidy of 50% off the employee’s wage. This applies for the period of 1 January – 30 September 2020. The maximum payment is $21,000 per apprentice or trainee.