The Australian Government‘s economic response to the impacts of the COVID-19 outbreak include a variety of tax concessions, as well as cash flow assistance packages aimed at ensuring that business remain solvent. The Government has increased the instant asset write-off threshold from AUD 30,000 to AUD 150,000 and expanded access to include businesses with an aggregated annual turnover of AUD 500 million, up from AUD 50 million.
The Government is also introducing a 15 month investment incentive by accelerating depreciation deductions for businesses with a turnover of less than AUD 500 million. These businesses will now be able to deduct 50% of the cost of an eligible asset on installation, with exisitng depreciation rules appling to the balance of the asset’s cost.
The Government is also introducing cash flow support for small and medium-sized businesses, in the form of tax free payments of up to AUD 25,000 for business with an annual turnover below AUD 50 million. This measure will benefit 690,000 businesses employing over 7.8 million people.