As the impact of the coronavirus on our daily lives and livelihoods rapidly evolves, below are the latest measures released by the Government to reduce both the impact to the nations health, economy, household and business finances.
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To further support Australian businesses through the fallout resulting from COVID-19, the government has extended the $150,000 instant asset write-off for an additional six months to 31 December 2020.
Initially announced on 12 May and intended to last until 30 June, the government’s $17.6bn stimulus package in part temporarily increased the threshold of the instant asset write off up from $30,000.
Businesses with turnover less than $500 million can continue writing off newly purchased, multiple assets, provided that each item is worth up to $150,000. Assets need to be first used or installed ready for use by 31 December.
The government anticipates that over 3.5 million businesses will be eligible to benefit from the extension of the scheme.
It is devised to encourage business owners to follow through with the investment they already had planned before the COVID-19 crisis, and assist others to invest sooner than intended to support economic growth over the near term. The measure is also intended to help to improve cash flow for businesses by bringing forward cash deductions.
The Government has announced the new HomeBuilder program to support jobs and boost demand in the residential construction sector at a time when the construction industry is facing extreme uncertainty.
Prime Minister Scott Morrison says this will drive a “tradie-led recovery” of the economy.
HomeBuilder will provide all eligible owner-occupiers with a grant of $25,000 to build a new home or substantially renovate an existing home.
The grants are open to singles earning less than $125,00 a year, or $200,000 per couple. They can be used for new homes valued up to $750,000 including land, or renovations worth between $150,000 and $750,000 for renovating an existing home with a current value of no more than $1.5 million.
The money can’t be used on investment properties or to build things outside the house such as pools, spas, tennis courts, sheds or garages and the works are to be undertaken via a licensed builder.
The program is expected to provide around 27,000 grants at a total cost of approximately $680 million.
The government anticipates the program will support the 140,000 direct jobs and another million related jobs in the residential building sector.
The grants are available from 4th June and will run until the end of 2020. Construction must be contracted to commence within three months of the contract date.
Norman Sinclair – MastFP, DipFP, AFP ASIC No. 249943.
Stephen Vigh – CFP, B Bus (Acc & Man), Dip FP ASIC No. 239508
Sef Pandzo – BComm (FinPlan) ASIC No. 278807 Kyle Medson – Certified Financial Planner ASIC No. 328912
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