Proposed economic government responses: how does it affect you?
We understand that these are tumultuous times for everyone, particularly businesses; we feel it too.
We’ve noticed there's a lot of information circling, a fair bit of misinformation as well. With that in mind, we've prepared a summary of points we believe people would benefit from knowing in relation to the proposed economic responses from both the Federal and State Government of Queensland.
1. Instant Asset Write Off threshold (from 12/03/2020 to 30/06/2020)
- The threshold will increase from $30,000 to $150,000
- This will apply to businesses with aggregated annual turnover of less than $500 million, up from $50 million.
2. Investment allowance of 50% for new assets (through to 30 June 2021)
- Businesses will be able to deduct 50% of the cost of an eligible asset when installed or ready to use.
- This will apply to businesses with an aggregated turnover of less than $500 million.
3. Employers with aggregated turnover of less than $50 million (based on 2019 year) will receive a credit of between $2000 and maximum of $25000
- For quarterly payers, the amount is calculated as 50% of the withholding paid in the March 2020 and June 2020 quarters
- For monthly payers, the amount is calculated on the withholding paid in March 2020 (150% for this monthly only)
- The amount will be deducted from the activity statement for the periods above.
4. Apprentices and trainees
- Eligible employers are those with less than 20 full-time employees
- Eligible employers may be entitled to 50% subsidy of wages, capped at $21000 per apprentice
- Subsidy itself is capped at $7000 per quarter
- Period covered is 01/01/2020 to 30/09/2020
- Application for subsidy is proposed to commence in April 2020
5. Business impacted by the Coronavirus are encouraged to get in contact with the ATO to discuss relief
- Relief may be granted on a case-by-case basis
- Automatic relief will not be granted to a specific geographic area.
- Employee superannuation obligations must still be satisfied
- You still must lodge on time
- ATO emergency Support Infoline: 1800 806 218
6. To social security, veterans, other income support, eligible concession card holders.
- Payment of $750 to commence automatically from 31/03/2020.
1. The Queensland Government will offer business interest-free loans to help keep small businesses afloat amid the crisis
- The proposed facility will comprise loans of up to $250,000 with an initial 12-month interest free period to help businesses retain staff.
2. The six-month payroll tax deferral will extend to all businesses across the state
Before taking any action, please bear in mind that at the time of writing this document, the above proposals are not legislated yet. We recommend waiting for further updates, which we will do so as soon as we know more.