The Federal Government has announced a significant coronavirus financial support package for businesses. 

This support package will provide the following financial relief to businesses:

Access to expanded instant asset write-off - The instant asset write off threshold will be raised from $30,000 to $150,000. This means that large purchases like a truck or tractor can be written off immediately. 

Accelerated depreciation deduction for business investments - There will be a 50% accelerated depreciated deduction available. This means businesses will be able to deduct 50% of the cost of an asset and still make use of existing depreciation rules for the balance of the cost. 

Boosting cash flow - A cash flow support payment will be made available to eligible businesses of between $2,000 and $25,000. (eligible businesses include a turnover of less than $50 million who employ staff).

Apprentice subsidies - The government will offer small businesses with fewer than 20 employees a wage subsidy of 50% (up to $7,000 each quarter) for every apprentice for up to 9 months. 
 
Administrative relief - The ATO will also provide administrative relief for some tax obligations for those affected by the coronavirus on a case by case basis. 

Additionally, Australians who receive income support such as pension payments, Newstart, veteran or social security income will receive $750 in one-off cash payments.

Hopefully this package will help support you and your business during the following months. If you have any questions about these changes, or have any concerns about the potential financial impact of the coronavirus on your business, please feel free to contact us.

A summary of measures and timings can be found in the table below and additional information can be found here: treasury.gov.au/coronavirus 

Summary: Economic response to the Coronavirus

Source: treasury.gov.au/coronavirus 

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Last updated 06/03/2020