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Australian Government Fiscal stimulus measures

Australian Government Fiscal stimulus

Yesterday the Government’s announced fiscal measures in response to the current Coronavirus (COVID-19). The measures are aimed at providing a boost to households and businesses.

The current COVID-19 pandemic is unchartered territory and presents challenges only human health but also to businesses and the economy.

Economic response summary

· Increase in the instant asset write off until the end of June 2020. Increasing the instant writeoff from $30,000 to $150,000 for businesses under $500 million in turnover to invest in plant and equipment.

· Introduction of accelerated depreciation for businesses under $500 million. This will be in place until 30 June 2021 and the value of the eligible asset is uncapped.

· The 50 per cent wage subsidy for apprentices and trainees for small businesses.

· The $750 one off payment to all social security, veteran and other support recipient and eligible concession card holders.

· Cash flow for employers of up to $25,000 should boost cash flow for SMEs at this critical time. Businesses will, however, need to get their BAS statements in to get the credit.

For a more detailed explanation visit www.treasury.gov.au

If you would like to discuss these initiatives please give us a call on 5437 9900.