Australian Government Economic Response to the Coronavirus

On 12 March 2020, the government announced a package of measures totalling $17.6 billion to help the economy withstand and recover from the economic impact of coronavirus.

Here is a summary of each benefit and the corresponding timing and eligibility.

Cash flow assistance for employers

Eligibility: Small and medium business entities with aggregated annual turnover under $50 million and that employ workers.

Assistance:

  • Businesses that withhold tax to the ATO on employees’ salary will receive a payment equal to 50% of the amount withheld, up to a maximum payment of $25,000;
  • Businesses that pay salary but not required to withhold tax will receive a minimum payment of $2,000.

Timing: Payment will be delivered by the ATO as a credit in the activity statement system from 28 April 2020 upon lodging eligible upcoming activity statements.

  • Quarterly lodgers will receive the payment for the March 2020 and June 2020 quarters
  • Monthly lodgers will receive the payment for March to June 2020 months but for March 2020 month the payment will be calculated at three times the rate (i.e. 150%)

Supporting apprentices and trainees

Eligibility: Small businesses employing fewer than 20 full-time employees who retain an apprentice or trainee who is in training as at 1 March 2020.

Assistance:  Wage subsidy of 50% of the apprentice’s or trainee’s wage paid during 9 months from 1 January 2020 to 30 September 2020. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter)

How to access: Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider.

Timing: Employers can register for the subsidy from early-April 2020. Final claims for payment must be lodged by 21 December 2020.

 

Increasing the instant asset write-off

Eligibility: Businesses with annual turnover below $500 million

Timing: From announcement until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe

Benefit: Immediate deduction for each eligible asset purchased at less than $150,000

 

Backing business investment

Eligibility: Businesses with annual turnover below $500 million purchasing certain depreciable assets

Timing: Eligible assets acquired after announcement and first used or installed by 30 June 2021

Benefit: Deduction of 50% of the cost on installation, with existing depreciation rules applying to the balance of the asset’s cost

 

Assistance for severely affected regions

Eligibility: The Minister of Trade, Tourism and Investment will work with affected industries and communities to develop recovery plans and measures

Timing: The $1 billion will be available for distribution through existing or new mechanisms as soon as practicable.

ATO administrative relief: ATO will provide administrative relief for certain tax obligations (similar to relief provided following bushfire) for taxpayers affected by the Coronavirus outbreak, on a case-by-case basis. All taxpayers affected by the Coronavirus outbreak can contact the ATO for assistance. Taxpayers can contact the ATO on 1800 806 218 or visit the ATO website at ato.gov.au for further information.

 

Household Stimulus Payments

Benefit: One-Off $750 payment

Eligibility: You must be residing in Australia and be receiving one of the following payments or hold one of the following concession cards on 12 March 2020 (or lodged a claim by this date and is subsequently granted)

  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Parenting Payment
  • Wife Pension
  • Widow B Pension
  • ABSTUDY (Living Allowance)
  • Austudy
  • Bereavement Allowance
  • Newstart Allowance
  • Youth Allowance
  • Partner Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Family Tax Benefit, including Double Orphan Pension
  • Carer Allowance
  • Pensioner Concession Card holders
  • Commonwealth Senior Health Card Holders
  • Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump sum payments; War Widow(er) Pension; and Veteran Payment
  • Veteran Gold Card holders
  • Farm Household Allowance

 

Please contact us today if you would like to know more details.