It’s the news small business owners have been waiting for. Prime Minister Scott Morrison has finally announced a $17.6 billion stimulus package in response to the economic uncertainty around the coronavirus.
Businesses will be eligible for up to $25,000 and instant tax relief while members of the community on Centrelink benefits will get one-off cash payments.
The stimulus package is said to be worth an estimate $15 billion with payments and incentives spread over this financial year and the next.
As part of the stimulus package, the government has upped the ante on its instant asset write-off scheme. Currently, businesses with a turnover under $50 million can get up to $30,000 per instant asset write off. From today the package has been expanded. Businesses with a turnover up to $500 million will now have access to the scheme and will be able to access an instant access write-off up to $150,000 per eligible item. The government hopes this will encourage business to get spending.
Further assistance will come in the form of cash payments from $2000-25,000 to help eligible small business owners pay wages or hire extra staff.
The government has also addressed community concerns surrounding employment by introducing a $1.3 billion stimulus package to keep apprentices in work. The package will deliver up to $21,000 per apprentice to businesses, paid quarterly backdated to the beginning of the year.
“We want to ensure that as we go through these difficult months and quarters ahead, that young people and apprentices will be able to continue in those apprenticeships as we go through this very difficult period,” Morrison said.
In response to the growing number of Australians being diagnosed with the virus, the government has announced a $2.4 billion dollar package that is expected to take the strain off the health care system. Funds will be used to establish pop-up coronavirus clinics and remote health services to ensure everyone has access to the advice they need to combat the virus.
These telehealth consultations will now be bulk-billed as part of the government’s containment strategy.
Small business commentator David Koch has given his take on the Morrison government package.