BridgePoint Group’s Director Mitchell Turnbull explains what the economic stimulus package means for your business.
In a move to boost economic activity through the June quarter, the Federal Government has announced a $17.6 billion stimulus package.
No school halls, or roof insulation schemes…
but it’s been viewed that it will keep people working and provide a ‘bounce-back’ when the coronavirus threat is over.
- Increase in instant asset write off threshold up to $150,000. It now includes businesses with a turnover up to $500m, an increase from the current turnover threshold of $50m. For your business, this means you can immediately write off capital investments. The govt suggests assets such as a tractor for farming businesses, a delivery truck etc and there must be a direct connection with how the business makes money.
- An investment incentive to support business investment and economic growth by accelerating depreciation deductions. You may be able to deduct an additional 50% of the asset cost in the year of purchase. Buying now will give your business advantages including tax relief and the ability to implement growth opportunities sooner.
- A ‘Boost Cash Flow for Employers’ with the objective providing cash flow support to businesses (with a turnover of less than $50 million that employ staff). What exactly does this mean? It is a credit equal to 50% of the PAYG amounts withheld from salary and wages paid to employees. The employer will need to lodge an activity statement to trigger the entitlement and if in credit, refunded within 14 days. For you, it’s cash flow positive.
- Providing support to the jobs of around 120,000 apprentices and trainees. A wage subsidy of 50 per cent of the apprentice’s or trainee’s wage is available for eligible employers. Again, providing more liquidity in your business.
In addition to these benefits for SMEs;
A one-off, $750 cash payment will be made to pensioners, social security, veteran and other income support recipients and eligible concession cardholders. Treasurer Josh Frydenberg wants Australian households and businesses to “spend up” their share of the federal government’s $17.6 billion stimuli to maximise the multiplier effect of the stimulus package.
This summary explains some of the benefits available for your business.
If you would like BridgePoint Group to help you maximise your entitlements contact Mitchell and the team at BridgePoint Group, your business growth experts.