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caronavirus large business

Following on from the Financial Crisis Assistance  article, we are just looking at larger businesses.

The other 5 articles in this series are:

Low-Income Earners
Superannuation Pension and Centrelink Recipients
Home Owners and Investors
Small and Medium Business
Landlords & Tenants

You can also refer to our other articles by clicking on the links above for your personal situation.

Most of the measures announced by the Federal Government and various State Governments revolve around small and medium-sized businesses. So, for the purposes of this newsletter, a large business is defined as meeting the following:

  • Turnover of over $50m
  • Operating in NSW with a payroll greater than $10m
  • Operating in WA with a payroll greater than $4m
  • Operating in Tasmania with a payroll greater than $5m
  • Operating in ACT with a payroll greater than $10m
  • Operating in Victoria with a payroll greater than $3m

We summarise the specific issues for Large Business as follows:

1: Business Loans – Repayment Holidays (3 months):

A number of banks have announced that they will grant a three month repayment holiday for business loans and equipment finance and vehicle loans. This is on a case by case basis, so please contact us for assistance in dealing with your financial institution on your behalf.

2: Employers with Apprentices and Trainees:

Eligible employers who employ apprentices or trainees can apply for a subsidy of 50% of the employee’s wage. This applies for the period of 1 January – 30 September 2020. The maximum payment is $21,000 per apprentice or trainee.

If an employer is unable to retain an apprentice, the subsidy will be available to the new employer.

An eligible employer must have less than 20 full-time employees. The apprentice or trainee must be in employment with the business as of 1 March 2020.

Other employers, regardless of size, and Group Training Organisations that re-engage eligible out-of-trade apprentices or trainees are also eligible for the subsidy.

Eligible employers can register for the subsidy from early April 2020 and final claims for payments lodged by 31 December 2020.

3: Instant Asset Write Off:

From 12 March 2020, the instant write-off threshold will increase from $30,000 to $150,000. It has also been broadened and will be available to businesses with an annual turnover of up to $500 million for the current financial year (an increase from $50 million). This applies to new or second-hand assets used or installed ready for use by 30 June 2020.

The increased write-off threshold will apply on a ‘per asset basis’ until 30 June 2020.

4: Accelerated Depreciation:

Accelerated depreciation of 50% will apply to eligible assets until 30 June 2021.

Eligible assets are those acquired after 12 March 2020 and are used or installed ready for use by 30 June 2020. However, it does not apply to second-hand assets, building or other capital works deductible under separate tax provisions. This concession will be available to business with an aggregated turnover of less than $500 million.

Still have questions? We are here to help.

We will assist you to get access to the information and any financial assistance as soon as it comes to hand. We will help you with your finances and your financial welfare.

We are here to support you with all concerns however small or large. Please email us at consulting@austasiagroup.com, or via phone on 08 9227 6300.

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AAG AustAsia

AAG AustAsia

AAG is a family-owned group providing Tax planning, management accounting, wealth management, and more. Established in 1979, AAG acts entirely in their clients' best interest by providing financial expertise and upholds a reputation of nurturing long-lasting relationships with clients to assist them with all their personal and business financial issues.