Increasing the instant asset write-off |
Allows businesses to claim immediate deductions for eligible asset purchases costing <$150,000 |
- Threshold expanded from $30,000 to $150,000
- Expanded to businesses with aggregate annual turnover of <$500m (was <$50m)
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Available for assets used or installed between 12 March 2020 and 30 June 2020 |
Businesses with aggregated annual turnover of <$500m
Eligible asset purchases <$150,000. Eligibility on a per asset basis
See the ATO information sheet for excluded assets
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Accelerating depreciation deductions |
Short-term growth initiative allowing businesses to accelerate deductions on eligible assets |
- Businesses will be able to deduct 50% of the eligible asset cost on installation in the first year
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Assets acquired after the announcement and installed by 30 June 2021 |
Businesses with aggregated turnover of <$500m
Eligible assets refer to new assets which can be depreciated under Division 40 of the Income Tax Assessment Act 1997 |
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Boosting cash flow for employers |
Tax-free cash payments to SME’s that employ staff to assist with employee wages |
- Initial minimum payment of $10,000 to a maximum of $50,000 to eligible businesses (equal to 100% of PAYG withheld over 6 months)
- Secondary payment for the period July 2020 to October 2020, equal to the total amount received in the initial payment
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Initial payment - 6 months from 1 January 2020 to 30 June 2020
Secondary payment – July 2020 to October 2020 |
Businesses with aggregated annual turnover of <$50m that employ staff (incl. not-for-profits) |
Initial payment delivered by the ATO as a credit in the activity statement system from 28 April 2020 upon lodging eligible upcoming activity statements
Secondary payment will be delivered as a credit in the activity statement system depending on whether the business lodges monthly or quarterly
Fact Sheet: Cash flow assistance for businesses |
Cash support for apprentices and trainees |
Wage subsidies available to small business to retain apprentices and trainees |
- Wage subsidy of 50% of apprentice’s or trainee’s wage for 9 months from 1 January 2020
- Business will be reimbursed up to $21,000 per eligible apprentice or trainee ($7,000 per quarter)
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9 months from 1 January 2020 to 30 September 2020
Employer can register from early April 2020
Deadline to lodge by 31 December 2020 |
Businesses employing fewer than 20 full time employees who retain an apprentice or trainee prior to 1 March 2020
Group Training Organisations that re-engage an out-of-trade apprentice or trainee |
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Severely coronavirus-affected region assistance |
Support to severely coronavirus-affected regions and communities |
- Waiver of fees and charges for certain tourism-related businesses
- Assistance to help businesses identify alternative export markets or supply chains
- Administrative relief from some tax obligations
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As soon as practical |
Businesses in severely affected regions and communities |
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Temporary relief for financially distressed businesses |
Temporary changes to the insolvency laws under the Corporations Act 2001, to provide relief to businesses |
- Increasing the statutory demand threshold from $2,000 to $20,000 for 6 months
- Increasing the demand response time from 21 days to 6 months
- Temporary relief from personal liability for directors trading insolvent when trading in the ordinary course of businesses
- Temporary instrument-making power to the Treasurer under the Corporations Act 2001 to amend provisions of the act to provide relief from specific obligations
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6-month period |
All businesses under the Corporations Act 2001 |
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SME Guarantee Scheme |
Provides a guarantee of 50% of new unsecured loans to SMEs to provide working capital |
- 50% guarantee for new unsecured loans provided by lenders
- Maximum loan size of $250,000 per borrower
- Loans will be payable over 3 years, with an initial 6-month repayment holiday
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Early April 2020 until 30 September 2020 |
Businesses with aggregated turnover of <$50m |
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Jobkeeper Payment |
Wage subsidies paid to employers in order to cover the cost of employees’ wages so the employer can retain staff |
- Employees who earn >$1,500 per fortnight, who are still employed – employers will receive $1,500 per fortnight and will be required to pay the balance in the employees' regular income
- Employees who earn <$1,500 per fortnight – employers will receive $1,500 per fortnight to be entirely distributed to the employee
- Employees who have been stood down – employers will receive $1,500 per fortnight to be entirely distributed to the employee. The employee will maintain their employment
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Begins on 30 March 2020 and is designed to last for 6 months
First payment to be made in May and backdated
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Employers with turnover of <$1bn, which have experienced a turnover reduction >30%, relative to a comparable period a year ago (of at least a month)
Employers with turnover of $1bn or more, which have experienced a turnover reduction >50%, relative to a comparable period a year ago (of at least a month)
Businesses include not-for-profits and cannot be subject to the Major Bank Levy
Only the business which is the primary employer for the relevant employee can claim the subsidy on behalf of that employee |
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Commercial and residential tenancy relief
Work on this moratorium is incomplete and discussions to finalise a plan are still being considered by the National Cabinet |
Moratorium on evictions for commercial and residential tenancies in financial distress due to COVID-19 |
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Temporary moratorium on evictions for non-payment of rent
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Tenants and landlords encouraged to agree on rent relief or temporary lease amendments
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Reduction or waiver of rental payments for a defined period
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Ability for tenants to terminate leases or seek mediation
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Commercial property owners should ensure benefits received as a property owner, benefit their tenants in proportion to the impact of COVID-19
- Landlords and tenants not affected by COVID-19 should continue to honour their lease agreements
- Cost-sharing or deferral of losses between landlords and tenants with government assistance
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