The government’s announcement of further economic support measures, backing-up a 12 March 2020 stimulus package and the Reserve Bank of Australia’s action, and intended to provide some cushioning effect among the Australian community in response to the coronavirus (COVID-19) crisis.
Today’s package (22 March 2020) is designed to enable businesses to self-determine the support they need—whether it be cash flow support from government or private sector funding support from banks—over the period of this crisis.
The measures announced today amount to a further AUS $66.1 billion in federal government support, bringing the total over the last two weeks to approximately AUS $189 billion, including the fiscal measures announced on 12 March 2020 and various financial liquidity support measures (including those of the Reserve Bank of Australia)—about 10% of GDP.
Tax relief measures
For individual taxpayers, the tax relief measures include tax-free withdrawals from superannuation funds, and one-off stimulus payments to individual taxpayers, to be made through the social security system.
For businesses and non-profits, there are to be tax-free payments made to certain employers (to support small and medium-size businesses). The payment would be delivered as a credit in the business activity statement system.
To accelerate business investment, the tax depreciation write-off rules are to be significantly expanded with an increased instant asset write-off for immediate deductions of certain asset purchases and a 50% accelerated depreciation deduction in addition to the existing depreciation deduction for certain eligible asset purchases.
Read a March 2020 report [PDF 1.5 MB] prepared by the KPMG member firm in Australia
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