In an effort to keep the wheels of commerce rolling forward, the government has announced the availability of cash grants of up to $25,000 to eligible businesses as part of a $17.5 Billion stimulus package. The tax free grant is targeted at eligible businesses that have employees and payroll withholding of tax from employee wages, with a maximum grant payable of $25,000, the government will effectively rebate 50% of the wages tax withholding on wages paid during the months of January 2020 – June 2020. The mechanism for calculation and payment will be simply by lodging your quarterly or monthly BAS with the ATO and ensuring that the correct banking details are held by the ATO for the business to be able to pay the grant to you.
Another proposed measure is to increase the instant asset write off for purchases up to $150,000 for businesses with a turnover of up to $500 million. The extension is proposed to apply until June 30 2020.
There is no legislation that has been passed regarding the government’s announcement. So stay tuned and we will keep you posted as we learn more.