Member Updates from the office of the Jobs Australia CEO - 25 March 2020
Jobs Australia is focussing our efforts to source as much information for you that is as “up to the minute” as possible. A new tab has been established on the Jobs Australia website, www.ja.com.au “Coronavirus Updates”. There you will find media releases from Federal and State Governments as well as media releases from other relevant sources that could be of assistance during these unprecedented times. We will commit to being discerning, as inboxes being overloaded is not our goal, however, sharing of information is considered important.
Together with this activity, updates that are received that may assist in the financial and wellbeing impact Covid-19 has on your organisation, will also be sent via eDM. This information will also be uploaded on the Jobs Australia website.
Jobs Australia works with or has collaborations with, many organisations and trusted information from any of them may be shared from time to time.
Cornwall’s Law Firm who have pulled together a summary of the Federal Government Stimulus Packages. Cornwall's have given consent for Jobs Australia to share this information. This is general commentary only and shared as a guideline for Members.
CEO Jobs Australia
As you will be aware, the federal government has announced two stimulus packages over the last week, aimed squarely at assisting the business community. The following is a summary of those measures.
Please note that we are working off the announcements themselves. There appear to be ongoing changes as the federal government seeks to better target its own measures. Therefore, the legislation itself may not strictly reflect the announcements.
What is clear is that this is a genuine attempt by Canberra to economically stimulate the business community and / or prevent a substantial increase in the unemployment rate in Australia.
We believe that overall, these measures are beneficial to business – especially those with a turnover of up to $50 million. It is certainly worth reviewing the measures and determining which parts of the stimulus packages may apply to you.
In addition, the speculation is that, in time, the federal government may announce a third tranche of measures in order to further stimulate the economy during the period of the COVID-19 pandemic.
We now turn to the measures announced to date.
The stimulus packages aim to assist small business entities (SBEs) by providing cash flow in the short term. For the purposes of this article, an SBE is a small to medium business entity with an aggregated annual turnover under $50 million.
1. Instant asset write-off (IAW)
The IAW threshold will increase from $30,000 to $150,000. Businesses with aggregated annual turnover of less than $500 million (up from $50 million) will be eligible for the IAW until 30 June 2020. This will apply on a per asset basis up to $150,000 exclusive of GST. The benefit of the IAW application on a per asset basis is that it enables eligible businesses to write-off multiple assets.
This incentive will only be available for assets first used, installed or acquired from 10:30am AEDT 12 March 2020 until 30 June 2020.