COVID-19 Stimulus Packages Kennerlys is here to help you understand

INCREASING THE INSTANT ASSET WRITE-OFF

WHO: Businesses with turnover >$500m.
WHAT: Will be able to deduct an additional 50% of a new asset purchased along with normal depreciation in the year of purchase up to June 30, 2021 (A few tricks to this one).

Providing support for retirees

WHO: Benefits for retirees and pensioners.
WHAT: A 50% reduction in minimum draw-down rules for super & a reduction in the social security deeming rates.

Supporting apprentices and trainees

WHO: Employers with apprentices or trainees.
WHAT: Can apply for a wage subsidy of 50% of their apprentices or trainees wage for up to 9 months from Jan 1 to Sep 30, 2020.

Supporting the flow of credit

WHO: Businesses with turnover >$50m.
WHAT: Banks will provide unsecured working capital loans that are 50% government guaranteed, normal credit processes required.

Boosting cash flow for employers

WHO: Business with a turnover >$50m with staff.
WHAT: Payment as a credit through ATO of up to $100k, $20k minimum. Businesses will receive a Cashflow Boost Payment (up to max $50k) based on the PAYG Withholding they report in their Business Activity Statements(BAS) or Instalment Activity Statements(IAS) from April 28, refunds to be paid in 14 days. An additional payment on lodgement of June to September BAS/IAS will be paid matching the Cashflow Boost Payment.

BACKING BUSINESS INVESTMENT (BBI)

WHO: Businesses with turnover >$500m.
WHAT: Can claim a tax deduction for spending on new/secondhand assets purchased up to $150k before June 30, 2020.