The Coronavirus pandemic has well and truly reached our shores and its effects are being felt everywhere from the toilet paper aisle to the ASX. Many businesses, particularly in the hospitality, tourism and aviation sector have barely brushed off the ash from the bushfires only to be hit again. The Federal Government has stepped in with unprecedented stimulus measures aimed to temper the severe economic fallout caused by the COVID-19 virus.
The packages are designed to provide short-term cash flow to business taxpayers to support employment and boost spending.
Here are the key sources of support that may be available to your business:
Instant asset write-off extension
The instant asset write-offs mechanism has been extended to businesses with aggregated annual turnover less than $500 million (previously $50 million) and increased to assets with a value up to $150,000 (previously $30,000). The offer is only valid until June 30, 2020, as it is designed to bring spending forward to get the economy moving. You can read more about how this initiative could help you invest in an energy asset such as a solar installation or battery storage.
50% asset investment incentive
Businesses with an annual turnover of less than $500 million will be able to deduct 50% of the cost of an eligible depreciating asset. Existing depreciation rules would apply to the balance of the asset’s cost. This incentive is available for a little longer – until June 30 2021. Importantly it sets no upper limit on the price of the asset.
A cash payment of up to $25,000 for employers
This stimulus package measure is designed to assist employers with the cost of wages and salary and hopefully prevent layoffs. To be eligible, a business must employ staff and have a turnover of less than $50 million. A tax-free payment of between $2,000 and $25,000 will be provided and is calculated based on the salaries and wages reported on the business BAS or IAS from January 1, 2020, to June 30, 2020.
50% wage subsidy for apprentice or trainee wages
This measure aims to help small businesses to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50% of the apprentice or trainee’s wage during the 9 months from January 1, 2020 to September 30, 2020. In cases where a small business is not able to retain the apprentice or trainee the subsidy will be available to a new employer.
The stimulus packages are only available for a limited time so you will need to act fast.
If you want to use your stimulus package to invest in solar or battery storage, it’s best to consult with a reliable energy brokerage firm. Get in touch with us at 1300 852 770 and our experts can talk you through the process as well as other business energy savings options.