March 23, 2020
Australian Government announces economic package to support workers and businesses
On 22 March 2020, the Australian Government announced its economic support package “Supporting Australian Workers and Businesses,” releasing the second stage of its economic plan to cushion the economic impact of the coronavirus (COVID-19). This AU$66 billion1 (Safety Net) package adds to the 12 March 2020 (Stimulus) announcements2 and includes new measures and enhancements to previous announcements.
There are only minor new direct income tax measures or enhancements for business. However, all businesses should consider what flow on effects there may be from the broader package of measures.
This Alert outlines the new measures.
Superannuation related measures
Other measures for individuals
State governments have also announced their responses to the economic impact of the coronavirus – which notably include changes to payroll tax arrangements, focusing on SMEs and ranging from refunds and waivers to changes to exemption thresholds.
A package of Bills to enact the Federal Government’s stimulus measures was introduced into Parliament, including the business tax measures (announced on 12 March) for those with a turnover of up to $500 million. This includes the increase in the instant asset write off to $150,000 and the business investment incentive measure to accelerate depreciation deductions.
The Australian Taxation Office (ATO) has added to its range of frequently asked questions (FAQs) and answers, as well as direct interactions on lodgments, payments and other issues. EY continues to engage with the ATO.
Broader economic impact
The impact for businesses and individuals is broadened by the difficulties arising from varying state government restrictions which are disrupting financial markets. These issues are relevant also for superannuation funds.
Joanne Masters, Chief Economist, EY Oceania, continues to provide economic comment on LinkedIn – link.
For additional information with respect to this Alert, please contact the following:
Ernst & Young (Australia), Sydney
Ernst & Young LLP (United States), Australian Tax Desk, New York
Ernst & Young LLP (United Kingdom), Australian Tax Desk, London