Small Businesses to get cash and tax breaks in stimulus package
March 12, 2020
Coronavirus support package: cash payments and tax relief for small business
The Government has announced a $15 billion stimulus package targeted at giving an immediate boost to the economy and small business are the big winners.
- The instant asset writeoff will be raised from $30,000 to $150,000, and the threshold for access will be increased from $50 million to $500 million. For assets over the $150,000 theshhold, accelerated depreciation will apply.
- Small and medium businesses with employees will receive cash payments between $2,000 and $25,000 depending on the size of their payroll. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
- Small businesses with apprentices or trainees can apply for a wage subsidy of 50 per cent of their wage for up to 9 months from 1 January 2020 to 30 September 2020. Payments will be from 31 March 2020 on a progressive basis, with over 90 per cent of payments expected to be made by mid-April.
The package also includes one-off payments of $750 to pensioners, social security, veteran and other income support recipients and eligible concession card holders.
The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months for businesses directly affected by the coronavirus.
The bulk of the stimulus measures will need to be approved by the federal parliament, which next sits on March 23.
This stimulus plan follows the announcement of $2.4 billion for health measures to combat the coronavirus.
Many small business owners report difficulties when it comes to the delay between issuing an invoice and actually getting paid.
Inventory management is critical for any business. It'll help keep enough stock to satisfy customer demand and avoid pitfalls associated with inventory.
Builders report difficulties recruiting or retaining skilled workers. We outline what’s causing the shortages and how you can find those much-needed skilled workers.
Positive cashflow is the beating heart of your business. Read our Plain English guide to cashflow and find out how to get in complete control of your cash position.
At the Federal Budget in May 2026, the Government announced that it would reintroduce a loss carry back tax offset for companies.
Working for yourself or running your own business? Setup robust systems for expenses & tax requirements so you can focus on your important tasks.
From 1 October 2026, businesses will no longer be able to apply a surcharge to card payments on designated eftpos, Mastercard and Visa networks.
Do you know how to track the financial health of your business? We highlight 5 key metrics you should be tracking and managing to keep your finances on course.
Now comes a decision for anyone who uses their car for work: is it better to claim a deduction using the logbook or cents per kilometre method?
Why is good bookkeeping so vital for your financial management? We’ve got some top hacks for maximising your bookkeeping!
