13 Mar The Government’s Stimulus Package – A Quick Overview
More than six million Australians will be getting a cheque for $750 as part of the Morrison Government’s $17.6 billion coronavirus stimulus package.
Households receiving government benefits including pensioners and those getting Newstart, Carer’s Allowance and Family Tax Benefits will get the one-off payments from March 31.
A total of 3.6 million pensioners will receive the one-off payment, as well as 1.1 million on Youth Allowance and Newstart; and 1.5 million other Australians including veterans and those on payments such as the Farm Household Allowance and Family Tax Benefit.
Handouts and Tax Breaks For Businesses
There will be two measures to boost cash flow to small and medium sized employers.
The first measure is a payment of 50% of the amount of tax withheld on wages on up to $25,000 with a minimum of $2,000 to businesses that employ people and have a turnover of up to $50 million.
The payment will be provided as a credit when businesses lodge their Business Activity Statements.
It’s estimated the measure will cost $6.7 billion over four years, benefiting almost 700,000 businesses and 7.8 million workers.
The second measure is a 50 per cent wage subsidy for apprentices and trainees in businesses with less than 20 employees.
The government will also spend $700 million over four years to expand the instant asset write-off.
The instant asset write-off threshold will also be raised from $30,000 to $150,000 and access expanded to businesses with an annual turnover of $500 million.
There will also be a 50 per cent accelerated depreciation deduction over and above what businesses can already deduct in the first year and is available for 15 months to 30 June 2021.
Boost for Pensioners
Deeming rates – used to calculate how much some pensioners are earning on their financial investments – will be cut by 50 basis points.
Both the lower and the upper deeming rates will be reduced by 0.5 per cent, benefiting around 900,000 Australians, including 560,000 aged pensioners.
This will cost the government $600 million.
In addition, about 2.4 million pensioners will get one-off payments of $750.
Boost for Tourism and Other Impacted Sectors
A $1 billion fund led by the Minister for Trade, Tourism and Investment, Minister Simon Birmingham, will be established to provide targeted support to those most impacted by the Covid 19 outbreak, including those who rely heavily on Chinese markets including the tourism industry and crayfish businesses.
It will cover things like waiving marine park fees and National Park fees in Kakadu and other places.
A coronavirus fund is being established designed to target those areas and provide assistance that are most heavily by the spread of the virus
It initially it will be a $1 billion fund. This will include the waiver of certain fees and charges for tourism businesses operating in Commonwealth National Parks, and the Great Barrier Reef Marine Park, increasing domestic tourism promotion, and additional assistance through Austrade to address supply chain breakdowns.
As occurred with the bushfires, the ATO will also be providing relief for those significantly affected with deferral of various tax obligations by up to four months.
We will keep you informed about how these incentives might affect you directly however if you would like to discuss your particular circumstance please call us on 02 4926 2699.