Australian Government announces $17.6 billion economic stimulus package in response to Coronavirus
On 12 March 2020 the government announced the economic package that is expected to protect Australian economy by keeping people in jobs and helping small and medium businesses and maintaining confidence. This action will ensure that the Australian economy is in the position to recover after the crisis subsides.
As per the release from the government, the package will consist four components:
1. Delivering support for business investment by:
Increasing the instant asset write-off
Backing business investment
2. Cash flow assistance for businesses by:
Boosting cash flow for employers
Supporting apprentices and trainees
3. Stimulus payments to households to support growth
4. Assistance for severely affected regions
Support for Coronavirus-affected regions and communities
The government is aiming to move quickly with this package. They will introduce the Bill on the next sitting, which will happen on 23 March 2020 for parliament’s urgent consideration and passage.
Treasury released the below table, which summarises the support people can expect from the government.
The Australian Taxation Office (ATO) will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.
Options available to assist businesses impacted by COVID-19 include:
Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled toAllowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Employers will still need to meet their ongoing super guarantee obligations for their employees.
MAR Advisory welcomes the proactive approach and are ready to assist you with queries about how the Stimulus package may affect your business.
Please contact our office on 07 31808525 for any further queries.
Source of info: treasury.gov.au
DISCLAIMER:This article is intended to provide a general summary only and should not be relied on as substitute for professional advice.
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