The coronavirus or COVID-19 has impacted many of us in Australia.
At the moment, there are over 375 confirmed cases in Australia, in New South Wales, there are over 179 confirmed cases. Of the 375 confirmed cases in Australia, 27 have recovered and 5 have died from COVID-19.189 cases were considered to be overseas acquired. Most of the overseas cases were acquired in the USA, Iran, Italy, and the UK 52 cases are contacts of previously confirmed cases. The likely place of exposure for 115 reported cases is under investigation. The source of infection for 19 cases is currently unknown.
Across the globe, COVID-19, or Corona virus has affected over 174,000 people and around 6800 deaths. Many businesses have been affected, and many businesses are shut down and are likely to go bankrupt. Australian Government announced last week two economic stimulus in trying to save the economy, the Australian Government is urging business people or employers to exercise ethical or moral standards and consider continuing the staff or employee even under the brink of economic conditions.
There are three parts to the coronavirus or COVID-19 government economic stimulus, which include:
- The government is going to hand out up to $100,000 to employers for businesses that meet the eligibility condition, which is the sale is under $50 million.
- Introduce the immediate write-off or depreciation up to $150,000, hence it is a steep increase from the current $30,000.
- The Government will pay up to 50% of your trainee or apprentice for up to 9 months, for eligible trainee or apprentice.
How to get up to $100,000 cash refund of your employee expense from Government
If your business sale is less than $50 million, and you hire employees, and when you lodge the next installment activity statement for the March and June Quarters, then the ATO will refund up to 100% of the PAYG withheld up to $50,000. That amount will be used in the second installment on the July to September and October to December Quarters.
This is done in the January to March quarter business activity statement and the April to June quarter Business Activity Statement.
If you do not withhold PAYG from your employee, then the employer will get up to 10,000 as the minimum payment from the ATO.
The payment or credit refund from ATO is tax-free and is not taxable.
Hence if you are running a business, it is important for you to talk to us, as one of the most responsible and experienced accountants and tax agents in Sydney and Adelaide, we can help you to ensure you get what you are entitled to the maximum credit for your employees. Please email us on email@example.com
Immediate write off or depreciation up to $150,000
In the prior federal budget, the Australian Government had increased the depreciation threshold to $30,000 for new or second hand first used or installed ready for use from 12 March to 30 June 2020. This threshold will be increased to $150,000. The conditions are turnover less than $150 million, increase from the sale of $50 million, and the asset is per asset class, hence in theory, if you buy multiple asset, it will be more. The depreciation amount will be reverted back to normal from 1 July 2020.
You only need to pay 50% of you trainee or apprentice, the government will pay the other 50%
If you meet the eligible criteria, and hire the eligible trainees or apprentices, you will get subsidy of wages for trainee or apprentice up to 50% for 9 months.
This is multiple billion dollar program of up to $17.6 billion economy stimulus is hoped to save the economy of Australia.
If you are running a small business, please come and talk us on 0410829900 and we will help you to ensure you will get all the eligible cash refunds from the Government.