The Coronavirus pandemic is bound to impact us all one way or another, but it’s important that we do what we can to help each other get through the challenges ahead. As our valued customers, we want you to make it to the other side, so we’ll be sharing any proactive solutions we develop or discover, including incentives and subsidies like those below.
The Australian Government has announced a range of options to help support small businesses, and we’ve summarised these below. We’re no tax agents, though, so we encourage you to touch base with your accountant sooner rather than later to learn how you can access this support, and start ‘lining up your ducks’ in order to make the most of the offerings.
Backing Business Investment (BBI)
This incentive is designed to support business investment and economic growth by accelerating depreciation deductions. It applies to eligible assets acquired from 12 March 2020 (to be used or installed by 30 June 2021). Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset cost. Ask your accountant about plant, equipment and in-house software. (And ask us about the incentives PYTHA HQ are offering to help you get set up with PYTHA 3D CAD – contact our office to learn more.)
Boosting cash flow for employers
This incentive provides a potential $25,000 credit (applied in the activity statement system) to small and medium-sized businesses who employ staff, with a minimum payment of $2,000 for eligible businesses. The idea is to help provide cash flow support to entities with a turnover of less than $50 million. This measure will benefit around 690,000 businesses employing approximately 7.8 million people. Ask your accountant how this will work for you, and start getting your accounts in order for an on-time lodgement.
Supporting apprentices and trainees
If you employ an apprentice or trainee (and have fewer than 20 full-time employees), you may be eligible for a wage subsidy of 50% of wages paid from 1 January 2020 to 30 September 2020. You’ll be able to register for the subsidy from early April 2020. Employers will be reimbursed up to a maximum of $21,000, per eligible apprentice or trainee ($7,000 per quarter). This measure will support up to 70,000 small businesses, employing around 117,000 apprentices. Contact your Australian Apprenticeship Support Network (AASN) provider for more information.
And if you want to find out how we’re helping our customers, check out the link below: