Coronavirus Stimulus Package: Support for Australian Businesses and Households

Posted 12 Mar '20

The Coalition have announced that they will be providing an assistance package worth billions of dollars targeted at stimulating the economy and fending off a recession in relation to the global pandemic, Coronavirus.

Here’s what we know!

> The instant asset write-off will immediately increase to $150,000
> Small and medium businesses can get up to $25,000 for staffing support
> More than 6 million welfare recipients eligible for a one-off cash payment
> $1.3 billion in support payments to keep apprentices employed
> $2.4 billion allocated for a health package, including pop up Coronavirus clinics

“It’s about supporting community confidence, employment and business continuity. This means boosting domestic consumption, reducing cash flow pressures for the most vulnerable businesses, and supporting new investments to lift productivity.” – Scott Morrison

The instant asset write-off will immediately increase to $150,000

The instant asset write-off for small businesses is currently restricted to companies with turnovers of up to $50 million dollars, allowing tax write-offs for investments in assets up to $30,000.

This will be significantly boosted, allowing companies with turnovers of up to $500 million, to benefit from tax write-offs for investments in assets up to $150,000.

Small and medium businesses can get up to $25,000 for staffing support

Nearly 700,000 small and medium businesses will be eligible for grants between $2,000 and $25,000 to help pay wages or hire extra staff. It will use the PAYG withholding system to assess the needs of struggling businesses.

More than 6 million welfare recipients eligible for a one-off cash payment

Pensioners, families, carers, veterans, young people and job seekers will get a one-off cash payment of $750 from March 31, hoping to encourage spending money in ways that benefit the economy. The cash payment is set to cost the Government $4.8 billion.

$1.3 billion in support payments to keep apprentices employed

The Government will also support employers to keep 117,000 apprentices in jobs over 9 months, with a wage subsidy.

$2.4 billion allocated for a health package, including pop up coronavirus clinics

Up to 100 coronavirus fever clinics set-up, and a new Medicare item created to deliver health advice remotely. These clinics are designed to take pressure of GP’s and hospital emergency centres, aimed at treating people with mild or moderate Coronavirus symptoms.

While this package abolishes the budget surplus ahead of the federal election, the Prime Minister has said that ‘the way we’ve designed this stimulus is to ensure that it doesn’t have a fiscal hangover down the track, that it doesn’t bury the budget for a decade’.

More to be announced.

Sources: ABC The Australian