COVID19 - Summary of stimulus packages for business
Federal stimulus package – for businesses
(Excerpt from ICB notice to BAS Agents)
Details as announced as of 12 March 2020, prior to Legislation being presented. It is not law yet but is extremely likely to become law as both sides of Parliament have indicated their support for these measures.
Businesses with turnover below $500m
Instant asset write-off up to $150k per asset – only until 30 June 2020
50% instant depreciation for “certain” assets – until 30 June 2021
Employers with turnover below $50m
Credit on BAS for 50% of PAYGW (taxes withheld from employee wages) up to $25k
Employers of Apprentices or Trainees with fewer than 20 employees
Subsidy of 50% of wages for 9 months to a maximum of $21k
ATO supporting business – no law required
Businesses are required to apply for these initiatives by contacting the ATO on 1800 806 218. Your BAS or Tax Agent can contact the ATO on your behalf.
Case-by-case discussion with the ATO determines eligibility for:
Up to 4 month deferral on payments to the ATO
Converting to Monthly BAS to enable quicker access to GST refunds (if applicable)
PAYG Instalments (Income Tax) being varied to Nil – this will need to be discussed with your tax agent/accountant
Remitting penalties and interest imposed on tax liabilities since 23 January 2020 Low-interest payment plans
Note: There is no discretion available for super payments. Super must be paid as per normal.
It is expected the law will include provisions for misuse or contrived arrangements to take advantage of these concessions when the business would not ordinarily have such arrangements.
NSW State stimulus package – for businesses
(Excerpt from nsw.gov.au website)
$450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20
$56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1million in 2020-21
$80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
$250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings more than $250 million to bring forward maintenance on public assets including social housing and crown land fencing
$500 million to bring forward capital works and maintenance.
Please note, the details on this information are still quite scarce but if you feel your are eligible for any of the above concessions, I recommend you contact your BAS or Tax Agent to discuss.
Of course, Easy Books for Better Business would be happy to assist if you don't already have a BAS Agent for your business.