Government Stimulus Package
There has no been doubt been a lot of confusion on what’s available to help small businesses amidst this unprecedented COVID-19 crisis.
We understand business in Mackay will be affected and on different scales depending on the industry. We have been working with clients in the Tourism industry and Export industry who so far have been affected greatly.
On Thursday, the Federal Government release a stimulus package which included the following assistance:
- Tax free payment to businesses who employ staff of up to $25000 (and minimum of $2000) whereby businesses will receive payments of 50% of the PAYG Withholding Tax on Activity Statements from 28/4 as a refund to be paid within 14 days following lodgement.
- Immediate asset write off for assets costing up to $150000 (increased from $30000). Please note the assets must be supplied and installed ready for use by 30/06/2020 so be mindful of supply issues.
- An additional 15-month investment incentive whereby until 30/6/21 businesses can claim an additional 50% of the asset cost in the year purchased. Unfortunately there has been no legislation released on this and once the finer details are released we will share this information.
- Eligible employers of apprentices and trainees can apply for a wage subsidy of 50% of the apprentice or trainee’s wages for up to 9 months during the period 1/1/20 – 30/9/20. This can be applied for from 2/4/20 & final claims lodged by 31/12/20. This applies to small businesses with less than 20 employees.
The government is also offering administrative relief with the ATO for certain tax obligations,including deferring tax payments up to four months.
Qld Government Payroll Tax Deferral
The Qld Government has also announced a relief package for businesses affected by the Corona virus where you can apply to defer lodgement and paying payroll tax returns until 31/7/20. You may be eligible if:
- You pay less than $6.5M in taxable wages; and
- Your current turnover, profit, bookings, retail sales, supply contracts or other factors – compared with normal operating activities – have been affected directly or indirectly by COVID-19.
You can apply for this now on the OSR website qldtreasury.syd1.qualtrics.com and defer lodgement and payment obligations until 31/7/20.