COVID-19 short-term business support via the tax system

A summary of assistance for small and medium businesses (turnover up to $500m) provided by the Federal Government through the tax system for those holding ABNs by 12 March 2020.

Please contact us for further details and your eligibility.

Boosting cash flow – linked to employer withholdings from worker’s remuneration

For businesses with revenue below $500m, refunds of PAYG withholdings will be made once monthly or quarterly BAS are lodged. The amount for the March 2020 quarter is the greater of $10,000 or the withholdings, capped at $50,000. The amount for April to June 2020 is 25% of the withholdings for monthly lodgers and 50% of the withholdings for quarterly lodgers. Those eligible for these cash flow boost payments will also be entitled to additional cash flow boost payments through to the September 2020 period, capped at the amounts refunded to June 2020.

Full deduction for new depreciable assets costing up to $150,000

The ability to deduct 100% of depreciable assets is extended to $150,000 for assets purchased and used or installed ready for use by 30 June 2020, up from the usual threshold otherwise applicable to the 2019-20 tax year (up to $30,000 for small businesses).

Higher depreciation for other new assets

Depreciation for more expensive assets will be accelerated for businesses. Small businesses using a small business general pool will be eligible to deduct 57.5% of the cost of depreciable assets added to the pool from 12 March to 30 June 2020, up from the standard rate of 15%. Larger businesses able to deduct up to 50% of the cost plus the standard depreciation rate from the value written down by 50%.

Other changes

  • Government guarantees to financial institutions loaning money to incorporated businesses;
  • Temporary changes have also been made to the Bankruptcy Act and to the Corporations Act relating to insolvent trading for a maximum of six months;
  • Wage subsidies to retain apprentices and trainees;
  • Establishment of a Business Growth Fund to make investments in corporations to provide stable funding for growing businesses.