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Author: Harris Black

The Government’s Economic Stimulus Package In Response To COVID-19

by Harris Black
Harris Black | 13 March 2020

On Thursday 12 March, the federal government announced details of a proposed $17 billion stimulus package, which was triggered by the classification of COVID-19 as a global pandemic.

The package is to support businesses throughout the current economic climate and has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.

Below is a summary of the incentives that have been announced.

Please note the below incentives are still only proposals and have not yet been legislated. It is expected that the measures will be introduced to Parliament in the final sitting week of March for urgent consideration and passage.

Instant asset write-off threshold

From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.

15-month investment incentive

From Thursday 12 March 2020, businesses with an aggregated turnover of less than $500 million will be able to claim a 50% deduction of the cost of new eligible depreciable assets until 30 June 2021. These include assets which are in excess of the proposed instant asset write-off threshold of $150,000 up to 30 June 2020 and will revert to all assets from 1 July 2020 to 30 June 2021. The incentive does not apply to second-hand depreciable assets or buildings and other capital works.

Tax-free payments – PAYG Withholding

Eligible small and medium businesses (i.e. with a turnover of less than $50 million that employ staff) will be eligible for a tax-free payment of up to $25,000 based on their PAYG withholding obligations.

Tax-free payments – Centrelink recipients

Certain income support recipients and eligible concession card holders will be eligible for a tax-free payment of $750 and will commence to be automatically made from 31 March 2020.

Wage subsidies to support the retention of apprentices and trainees

Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. The maximum subsidy for each apprentice/trainee is $21,000. Employers are expected to be able to register for the subsidy from early-April 2020

Assistance to severely affected regions

The Government has also committed to set aside $1 billion to support regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.

ATO administrative relief

The ATO will provide administrative relief for some tax obligations for people affected by the Coronavirus outbreak, on a case-by-case basis.

Important Tax Dates

by Harris Black

28 February 2020
Lodge tax return for non-taxable large/medium entities as per the latest year lodged (except individuals).
Lodge and pay December 2019 Quarterly BAS

21 March 2020
Lodge and pay February 2020 monthly BAS

31 March 2020
Lodge tax return for companies and super funds with total income of more than $2 million in the latest year lodged (excluding large/medium taxpayers), unless the return was due earlier.
Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more, excluding large/medium trusts.

21 April 2020
Lodge and pay March 2020 BAS

Expansion Of Tax Avoidance Taskforce

by Harris Black

The ATO has recently expanded its Tax Avoidance Taskforce activity to include top 500 private groups, high wealth private groups, and medium and emerging private groups.

The Tax Avoidance Taskforce was originally conceived in 2016 to ensure that multinational enterprises, large public and private business pay the right amount of tax. The Taskforce’s main role is to investigate what the ATO considers aggressive tax avoidance arrangements, including profit shifting.

As a part of the expansion, the ATO now has three “programs” for private groups under the Taskforce’s umbrella: top 500 private groups, high wealth private groups, and medium and emerging private groups. The expansion that will perhaps affect the most taxpayers will be the program covering medium and emerging private groups. This program includes private groups linked to Australian resident individuals who, together with their associates, control wealth between $5 million and $50 million, and businesses with an annual turnover of more than $10 million that are not public or foreign owned and are not linked to a high wealth private group. The ATO estimates this will cover around 97% of the total private group population.

Accountancy Insurance – Audit Shield Service

by Harris Black

You would have received a letter from Harris Black offering you the opportunity to participate in our Audit Shield Service. Whilst we make all efforts to prepare your accounts and tax returns perfectly, we cannot stop a government authority choosing to undertake a review or an audit.

With government authorities increasingly using data matching with other government bodies, banks, Single Touch Payroll and even companies such as AirBnB, audits and reviews are on the rise.

The Audit Shield service has provided effective financial protection to those of our clients who have been subject to an audit, enquiry, investigation or review from the Australian Taxation Office or any other relevant government revenue agency in relation to lodged returns. Whilst we act as your registered tax agent, you are able to opt into this service.

Below is a chart outlining the 2018-2019 Audit Shield claims across Australia:

Source: Audit Insurance

To understand more about the Audit Shield Services please contact your Harris Black team member

Meet Nathan Gordon

by Harris Black

Nathan started with Harris Black in 2008 and has since progressed to become a Director in 2013. He is a member of the Chartered Accountants Australia and New Zealand and a Chartered Tax Advisor of The Taxation Institute.

Some interesting facts about Nathan – born in Newcastle, NSW, Nathan says he could give a 40-minute presentation on the history of the Newcastle Knights without any preparation. Nathan’s favourite subject in high school was Maths and his first (and only) job was as an accountant. Aside from necessities, Nathan couldn’t go a day without coffee and a skill he would like to master is golf.

An excerpt of the interview with Nathan is below.

To view the full interview, please click here.

Harris Black Happenings

by Harris Black

A couple of reasons for celebration in the Harris Black family so far this year!

Practice Manager Kim Ward (Schluter) and her husband James welcomed baby Julius into the world on 13 January. We are receiving plenty of pics and updates. Looking forward to an office visit soon!

Baby Julius William Ward

Additionally, congratulations to Jacinta Murray for passing her Chartered Accountants qualification. A tough task. Well done!

All the best and congratulations from your Harris Black family!

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