With the government in panic-mode about the possibility of slipping into a recession, they have announced a $17.6 billion stimulus package for Australia *.
This includes a once-off payment to people on welfare and also a business tax relief package. With $11 billion expected to be paid out before July the Government have faced the fact that they will not deliver it’s expected surplus.
In a nutshell;
– businesses will receive a minimum of $2,000 and a maximum of $25,000.
– to be eligible they must employ staff and have a annual turnover of less than $50 million (based on last year)
– The payments will be fed back to the businesses via their BAS lodgments (monthly or quarterly)
– Employers who pay employees, but are not required to withhold tax will still receive the minimum payment.
– Welfare recipients will receive a once-off payment from March 31
– The instant asset write-off has been extended to include companies with up to $500 million turnover (currently up to $50 million)
This is an interesting announcement from the Government and with Corona Virus and recession on the horizon, they needed to boost business confidence. This will certainly allow businesses to negate some of the PAYG costs in employing staff and put that money back into growing their business in the face of downturn.
For a fact-sheet on the business package see this Treasury link
For the ABC news article for further reading see this link
If you need help deciphering this package or are worried you may miss out on this package, contact us for further help.
*Details subject to change by the Australian Government