Government proposes the latest TAX Measures
Australian Government proposes the latest Tax Measures to Counter economic disruptions caused by Covid-19.
In fears of the novel coronavirus outbreak, experts around the world are predicting a major economic downfall. As a way to counteract the loss of investor confidence, the government of Australia has announced a package worth $17.6 billion to sustain the economy.
This precautionary measure is being taken to preserve jobs as businesses are expected to lay off a large number of laborers.
Also, to keep the market intact while encouraging investments and support those who are already unemployed. To further elaborate on the suggested measures, a convenient package for bills will be drafted in the parliament in the last meeting in March 2020 (expected around March 23, 2020) for immediate consideration and approval.
The important point from Tax measures include:
- Based on the PAYG prohibitions, small and medium-sized businesses (that have an aggregate turnover of less than $50 million and employed staff) will have tax-free payments of as much as $25,000.
- For social security, veterans, recipients of income support, and legitimate discount cardholders will have tax free payments of $750. According to the experts, this measure will be advantageous for 50% of the pensioners. The payment will start being made to these beneficiaries from March 31, 2020.
- From Thursday, March 12, 2020, the existing asset write off precedent, which was $30,000, will be renewed. For a business with a total sales turnover of less than $50 million, it’s $150,000 (For businesses with a total turnover of less than $500 million).
It will stay in effect until June 30 2020
These guidelines are only accessible to businesses with total sales of less than $500 million. The regulation will only be applicable on first use, new depreciating assets or pre-installed assets that are going to be used for the first time, by June 30, 2021.
The government has proposed some more Economic boosters to keep up with the existing and expected effects of the pandemic. These include:
Extra assistance to aid businesses in recognizing other supply chains or export markets that can help them retain in the crises.
Waiver Fees and extra charges companies currently working in Great Barrier Reef, Marine Park. There will be entry fees for commonwealth national Parks.
A business can avail $21,000 of subsidy per trainee/apprentice. In addition to this, a business that cannot support an apprentice, this subsidy will be given to those who hire the apprentice, given that registration is made around early-April 2020.
There shall be more supportive measures for the local tourism industry and other vulnerable industries.