Coronavirus: Government announces new tax measures

The Government has announced a number   of economic  responses  to  the  Coronavirus  (or ‘COVID-19’)  pandemic,  including  economic stimulus packages worth billions of dollars.

Some of the key tax measures include:

• From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
• A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions.

This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

• Small and medium-sized businesses (and not-for-profit entities), with an aggregated annual turnover of less than $50 million that employ people may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations.