The Federal Government has recently announced a range of measures designed to not only help households respond to the economic challenges presented by the spread of the coronavirus but keep the lights on and the doors open of our small businesses.
The initiatives the government has announced will support over 3.5 million businesses or roughly 99% of businesses in Australia employing more than 9.7 million employees.
Support for business includes:
- Increasing the instant asset write off threshold from $30,000 to $150,000;
- An investment incentive for businesses to deduct and additional 50% of the asset cost in the year of purchase;
- Payments of up to $25,000 for eligible SMEs to provide cash flow support;
- A wage subsidy of up to 50% of an apprentice or trainee’s wage;
- A $1 billion fund to support the industries and communities that have been disproportionately affected by coronavirus including tourism, agriculture and education.
Additionally, the Federal Government has announced further measures to be introduced to parliament including:
- Investment of up to $15 billion to enable smaller lenders to continue supporting Australian consumers and small businesses.
- The Australian Office of Financial Management (AOFM) will be provided with an investment capacity of $15 billion to invest in wholesale funding markets used by small banks and non-bank lenders. The AOFM is expected to be able to begin investing by April.
- This funding will complement the Reserve Bank of Australia’s (RBA’s) announcement of a $90 billion term-funding facility for authorised deposit-taking institutions (ADIs, aka ‘banks’) that will also support lending to SMEs.
For assistance in accessing this government support we recommend you contact your accounting advisor or use the QuickBooks portal to find one near you.