The ATO has committed to supporting Small Businesses!
The ATO understands this year has been difficult for a number of small businesses, with a number of recent events leading to economic and personal challenges. If you are experiencing financial difficulties with your tax and super obligations because of COVID-19 (novel coronavirus), phone the ATO Emergency Support Infoline on 1800 806 218 for help tailored to your circumstances.
The Government also recently announced a package of measures to help the economy withstand and recover from the economic impact of coronavirus on 12 March 2020, included in its economic response to COVID-19;
Enhancing the instant asset write-off
The government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million). Available from 12 March 2020 until 30 June 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.
Backing business incentive
The government is introducing a time limited 15-month investment incentive to support business investment and economic growth over the short- term, by accelerating depreciation deductions.
A deduction of 50% of the cost of an eligible asset on installation will apply, with existing depreciation rules applying to the balance of the asset’s cost - Eligible businesses – businesses with aggregated turnover below $500 million.
Boosting Cash Flow for Employers
The Boosting Cash Flow for Employers measure will provide up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses. The payment will provide temporary cash flow support to small and medium businesses that employ staff during the economic downturn associated with coronavirus. The payment will be tax free.
Eligibility - Small and medium business entities with aggregated annual turnover under $50 million and that employ workers will be eligible.
The payment will be delivered by the ATO as a credit in the activity statement system from 28 April 2020 when eligible businesses lodge (see below) upcoming activity statements.
Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50% of the amount withheld, up to a maximum payment of $25,000.
Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.
This measure will benefit around 690,000 businesses employing around 7.8 million people.