BODY CORPORATE AUDITS:
The government has announced a stimulus package for a time when it is widely perceived that our economy will experience a deep impact due to the ongoing corona virus crisis. One of the major reasons for such an impact seems to stem from China, which is a major trading partner with Australia with regards to education; export of commodities, energy and services as well as tourism. The reduced demand for the above will have a cascading effect throughout the economy. It is perceived that this effect will be mostly felt beyond the April to June Quarter of FY 2020. To top this up we shall face some local economy woes where events will be cancelled and schools closed.
The shedding of billions through the global stock markets is another reminder how the world perceives the economic shock of the coronavirus Pandemic. The above factors warrant a stimulus be implemented as soon as possible and hence acting swiftly the government has declared a stimulus topping $17.6bn.
Business owners are the lifeline of the Australian economy and are susceptible to change in economic conditions. So that businesses can keep their wheels moving, some measures have been announced.
The salient features of the declared handouts include the below:
For Businesses:
- Instant Asset Write off increased to $150,000 from the current $30,000.
- A tax-free handout of up to $25,000 equaling 50% of PAYG withholding amounts between the period 1st January to the 30th of June 2020. Minimum handout to be $2000 and it is estimated this benefit will reach about 690,000 employers. If you have employees and reporting wages you would still qualify for the minimum amount of $2000.
- 50% Instant depreciation deduction (generally would apply to purchases over $150,000) and rest to be deducted based on standard depreciation rules.
- 50% of the costs of hiring an apprentice shall be covered, as long as the apprentice had been employed from the 1st of January and continues to be employed thereafter.
For others:
- $750 to low income earners, pensioners and Health card concession holders.
- Any regions that are identified to be severely affected by the coronavirus, will be looked after. A budgetary allocation of $1bn has been made.
- Other benefits could follow through for families.
If you are a business owner and are employing staff and not sure how to become eligible for the government’s small business handouts and tax benefits, feel free to contact us to discuss this. A One Accountants serves many business owners from startups to varied industries and are experts in business accounting and tax.
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