Monthly tax tip:
The Government has announced an increase in tax benefits in response to the Coronavirus outbreak. Below is the list of key tax measures and payments available to small businesses that have been included in the $83.6 billion economic stimulus package.
• The instant asset write-off threshold has been increased from $30,000 (for businesses with a turnover of less than $50 million) to $150,000 (for businesses with a turnover of less than $500 million) from 12th of March to 30th of June 2020
• Immediate 50% deduction of the cost of an eligible asset with the balance to be depreciated under current depreciation rules for assets purchased from 12th March 2020 to 30th June 2021
• Tax-free payments from $20,000 to $100,000 for eligible small and medium businesses that employ staff based on their PAYG withholding obligations – this will be applied as a credit of 100% of the PAYG withheld when lodging an activity statement from March to June 2020 with the ATO
• Relief from the ATO for some tax obligations for persons affected by the Coronavirus outbreak – deferral of certain lodgements and payments
• Temporary relief for directors from any personal liability for trading whilst insolvent
• Wage subsidies to support employers who pay apprentices and trainees – employers who employee less than 20 full-time employees may be entitled to apply for a wage subsidy that will cover 50% of an apprentices or trainees wages for up to nine months from 1st January to 30 September 2020 with a maximum subsidy of $21,000 for each employee
If any of the above points apply to you or your business then please ensure that you apply for them to receive your full entitlement. Please note that some of the benefits are automatic and do not require an application but you do need to ensure that you are eligible. We will be available to answer any questions on the new stimulus package benefits and assist your business to gain these entitlements if required.
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.