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Australia: Tax relief measures included in economic stimulus package (COVID-19)

Australia: Tax relief measures, coronavirus

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.

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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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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