Federal Stimulus package – what has been announced so far

The “devil will be in the detail” and the legislation can not be voted on until Parliament returns in late March however, as a starting point it seems that

Households in receipt of government benefits (such as pensions, Newstart etc) to receive a one-off payment of up to $750, rolling out from 31 March

Small employers (less than 20 employees) will receive incentives to retain existing apprentices (they must have been your apprentice on 1 March)

Small businesses (less than $50M turnover) who pay salary & wages (no detail yet as to any possible exclusions for business owners) to receive between $2,000 and $25,000 tax free annually – calculated as 50% of the amount of PAYGW paid to the ATO for employees (capped at $25,000) – this is not expected to start until at least May 2020

Instant asset write-off expanded for capital purchases up to $150,000 – this still only applies to purchases to 30 June 2020.

 

What should you do now?

Nothing (it’s not law yet) but you should start considering planning matters like

– retaining existing apprentices

– contractors vs employees

– timing of capital purchases

 

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