Small Business Cash Handouts, Subsidies and Tax Incentives in Government Coronavirus Stimulus Package.
12 March, 2020 / In Announcements / By Chris Burnett
SME business cash handouts, subsidies and tax incentives. Here are three of the major items that can help your business under the Government’s $18 billion dollar stimulus package in the wake of the Coronavirus downturn.
Small to Medium Size Business Cash Grant
The Government will give tax-free cash grants of up to $25,000 to small/ medium size businesses in a $6.7 billion “cash flow boost”. It is expected that businesses will get a payment equal to 50% of the tax withheld on their employee salaries starting with the March 2020 quarter running through to the end of the June 2020 quarter.
If a business lodges its BAS monthly – your business will get three times the amount for the month of March 2020 to account for the previous two BAS’s already lodged.
Businesses that pay salary and wages will receive a minimum $2000 – even those not required to withhold tax.
The ATO will deliver the payment as a credit to their Activity Statement account upon lodgement of their activity statement. Where it places the business in a refund position, the ATO will deliver the refund within 14 days.
Expanding Instant Tax Asset Write Off
Businesses will be able to claim an instant tax deduction for any asset purchases up to $150,000 – currently the limit is $30,000. More businesses will also be eligible for the incentive with the annual turnover limit going from $50 million to $500 million.
Subsidies for Apprentice Wages
The Government will pay 50% of apprentice wages through to 30 September 2020 – backdated to 1 January 2020.
The subsidy of up to $21,000 for each apprentice is available to small businesses with fewer than 20 staff or any other business that has hired an apprentice who has lost their job since 1 March 2020.
Please give me a call if you want to discuss how your business can access the benefits of the Government’s recently announced stimulus package.