From Aussies doing their grocery shopping to small business owners trying to keep things afloat, the coronavirus has impacted all corners of life in Australia.
And to ease the financial stress, the Federal Government has today announced a stimulus package that’ll provide more than $17.6 billion worth of tax breaks and subsidies to small businesses feeling the pinch.
“Australia is not immune to the global coronavirus challenge but we have already taken steps to prepare for this looming international economic crisis,” said Prime Minister, Scott Morrison.
“The economy needs temporary help right now to bounce back better so the livelihoods of all Australians are protected.”
It’s estimated that the stimulus package will benefit 700,000 small and medium sized businesses and 7.8 million Aussie workers.
What small businesses will receive
Around $6.7 billion will be spent over four years to help businesses stay up and running during the outbreak.
Small businesses with less than 20 employees will receive up to $7,000 each quarter for every currently employed apprentice in the form of wage assistance.
It’s hoped that this will provide wages for up to nine months to help trainees and apprentices remain employed.
Businesses with a turnover of under $50 million will also be granted access to tax-free payments of up to $25,000 in an effort to increase cash flow.
Finally, the government also plans to spend over $700 million to expand the instant asset write-off.
The instant asset write-off is a scheme that allows small businesses to immediately claim deductions on business purchases of up to $30,000, which includes things such as chairs, desks or storage units.
This $30,000 threshold will now be lifted to $150,000 for large businesses with an annual turnover of $500 million.
By doing this, the government is expected to see an increase in interest by small businesses to purchase big-ticket items, such as cars, utes, trucks and equipment.
So if you’re an Aussie looking to safeguard your small business against unforeseen disasters like the coronavirus, we've got four ways to get started.