The Federal Government released details today on a proposed stimulus package in response to the economic impact of the Coronavirus pandemic. The stimulus package includes the following proposals:
- A one-off tax free $750 cash payment to age pensioners, Department of Veterans’ Affairs income recipients and holders of eligible concession cards. To be eligible, the person must reside in Australia and be receiving a listed payment or card on 12 March 2020. A person will only receive one payment even if they hold multiple eligible benefits. The payment is expected to be made in mid-April 2020.
- Increasing the instant asset write-off threshold to $150,000 (from $30,000) for businesses with aggregated turnover of less than $500 million, effective today. The threshold continues to apply on a per-asset basis. It is due to cease on 30 June 2020.
- Providing a tax-free cash flow injection of up to $25,000 for businesses with a turnover under $50 million which employ staff. This will be applied automatically through the business lodging its Business Activity Statements and will be based on the amount of tax withheld on employees’ salaries and wages.
The Government intends to introduce legislation to implement this package in the March sitting, which commences on Monday 23 March 2020.
More information can be found here
Additionally, for Centrelink pensioners the lower deeming rate is to be reduced from 1% to 0.5% and the upper rate reduced from 3% to 2.5%, effective from 1 May 2020.
Posted on Mar 12, 2020