Government COVID-19 Stimulus Plan: Tax-related Measures

Note: current as of 25 March 2020

Federal Government 

Stimulus MeasuresEffective Date
Support for businesses
Instant asset write off 
Instant asset write-off threshold for depreciating assets under $150,000 for businesses with aggregated annual turnover of less than $500m

The depreciable assets applies to both new and second hand assets first used or installed ready for use from 12 March 2020 to 30 June 2020 

The instant asset write off will revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020 
12 March 2020 to 30 June 2020                                                   
Business accelerated rate of depreciation 
Immediate deduction of 50% for eligible expenditure that does not fall within the above instant asset write-off, either because the item exceeds the $150,000 threshold, or the item is not first used or installed ready for use by 30 June 2020 for businesses with aggregated annual turnover of less than $500m 

Eligible asset are new depreciable assets acquired after 12 March 2020 and first used or installed by 30 June 2021

This incentive does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43
12 March 2020 to 30 June 2021
Cash payments for SMEs employers and charities
Businesses and not for profit organisations with turnover less than $50 million will receive cash flow boost payment between a minimum of $20,000 and up to $100,000

Eligible employers that withhold tax on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000 for each phase of the payment

The payment will be made in two periods, firstly the quarters ending in March 2020 or June 2020 and secondly the quarters ending June 2020 and September 2020 for quarterly BAS lodgers and the relevant monthly periods for monthly BAS lodgers

It will be generated automatically and will be a tax free amount. It will be included as credit on the relevant entity’s Business Activity Statements

Entity must have held an ABN on 12 March 2020 and have carried on an enterprise at that time
March 2020 BAS to September 2020 BAS
50% subsidy apprentice wages
Wage subsidy of 50% of apprentice or trainee wages for up to 9 months from January 2020 to September 2020, maximum benefit is $21,000 per apprentice or trainee, for small businesses with fewer than 20 full time employees
January 2020 to September 2020
ATO concessions
PAYG concession SMEs can vary the PAYG instalment amounts to zero from the March 2020 quarter, and claim a refund for any instalments made for the September 2019 and December 2019 quarters taxpayers

BAS payment deferral: Taxpayers can request the ATO to allow deferral of payments of BAS (GST liability, PAYG instalments and FBT) for 4-6 months

Monthly BAS: taxpayers on quarterly GST reporting can opt into monthly GST reporting

Remission of interest and penalties: Remitting any interest and penalties incurred on tax liabilities on or after 23 January 2020 for taxpayers impacted by COVID-19
From March 2020 quarter determined per case
Support for individuals and households
Individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
From mid-April 2020 

State and Territory Governments

StateStimulus Measures

NSW
Payroll tax waived for the March 2020, April 2020 and May 2020 payroll tax returns  25% reduction on payroll tax payable in the payroll annual reconciliation due by 28 July 2020, for business whose total grouped Australian wage for FY19/20 is less than $10 million Payroll tax threshold increased to $1 million from 1 July 2020
ACTPayroll tax waived for 6 months for businesses in the hospitality, arts and entertainment industry Payroll tax deferral for FY20/21 for businesses grouped with Australian wages up to $10 million until July 2022
VICPayroll tax waived for FY19/20 for businesses with annual taxable wage up to $3 million. The eligibility threshold applies to each employer, so any member of a group that pays taxable wages of less than $3 million per annum will be eligible. Payroll tax deferral for first quarter of FY20/21 for businesses with annual taxable wage up to $3 million until January 2021 Land tax deferral for the 2020 land tax payment until 31 December 2020, for land owners with at least one non-residential property and total taxable landholding below $1 million. Payment will be required in full by 31 March 2021
QLD6 months payroll tax deferral for all businesses until 3 August 2020. Need to make online payroll tax deferral application 
WAPayroll tax deferral for FY19/20 for businesses with annual Australian taxable wage <$7.5 million until 21 July 2020. Need to make online payroll tax deferral application  An one off grant of $17,500 to be automatically paid to businesses with annual Australian taxable wages between $1 million and $4 million, paid from July 2020 Payroll tax threshold increased to $1 million from 1 July 2020
SAN/A
NTExtend the existing payroll tax exemption for hiring Territory employees to 30 June 2021
TASPayroll tax waived for the March 2020, April 2020, May 2020 June 2020 payroll tax returns for businesses in the hospitality, tourism, seafood industry businesses and businesses with annual payroll of up to $5 million 12-month payroll tax rebate for businesses that employ persons under 24 between April and December 2020

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