On 12 March 2020, the government announced a package of measures to help the economy withstand and recover from the economic impact of coronavirus. The following measures will be administered by the ATO. We are here to explain what measures would benefit you.
1. Cash flow assistance payments for SMEs
Eligible small and medium-sized businesses (SMEs) will receive a Boost Cash Flow for Employers of up to $25,000 (with a minimum payment of $2,000). The payment will provide cash flow support to businesses with a turnover of less than $50m that employ staff, between 1 January 2020 and 30 June 2020. Businesses will receive payments of 50% of their BAS or IAS from 28 April 2020 with refunds to then be paid within 14 days.
2. Business investment initiatives – instant asset write-off extended and increased to $150k
The instant asset write-off threshold will be increased from $30,000 to $150,000 and expanded to include access for businesses with aggregated annual turnover of less than $500m (up from $50m) until 30 June 2020..
A time-limited 15-month investment incentive (through to 30 June 2021) will also be provided to support business investment by accelerating depreciation deductions. Businesses with a turnover of less than $500m will be able to deduct an additional 50% of the asset cost in the year of purchase.
