COVID-19 tax obligations and business relief guide
Australian federal government has provided the grant named “COVID-19 response package” including the amount of $25 billion in addition to temporary and targeted support. Due to the widespread of coronavirus, the local and international economy is impacted. The Prime minister of Australia has announced that they are all set to balance the budget and revert to the economic challenges. Below are the details about the COVID-19 tax obligations and the business relief package.
Key proposed measures for Covid-19 tax obligations:
- Economic support payments
- JobKeeper payment extension
- Making Victoria’s business support grants non-assessable, non-exempt income for tax purposes.
As indicated by OECD and IMF, Australia is providing financial support and running the advanced economy without risking debt sustainability. Instead of challenges, Federal and State level governments have welcomed medium and small businesses for tax concessions and cash flow support. Also, the Australian Taxation Office has announced administrative concessions for which you should consult a professional tax accountant to get benefits for business tax returns in Melbourne.
Stimulus and relief package
The first package was announced on 12 March 2020, worth $17.6 billion by the federal government, to battle the spread of COVID-19 and confronting economic challenges. The second package was announced by the government bringing the total relief to $189 billion on 22 March 2020. This was followed by a Job Keeper package worth $130 billion. Many announcements were made subsequently to expand and extend these packages.
The federal government stimulus package
There are many components included in the economic stimulus package like:
- Help to businesses via JobKeeper payments to keep employees.
- Tax concessions for supporting business capital investments
- Not-for-profits (NEPs) and cash flow assistance form helping medium and small-scaled businesses to keep their staff employed.
- For most seriously affected communities, regions, and sectors, direct support will be provided.
- Government assures 50% support to the unsecured short-term loans for medium and small businesses, to support the flow of credit.
- For financially stressed enterprises, temporary relief is provided to directors for trading while insolvent.
- Backing for people and family units as boost installments and pay to uphold, transitory measures to permit early admittance to superannuation, and diminishing the superannuation least drawdown rates.
Other than this Enhanced tax concessions for capital investment is provided. Also, cash flow is boosted for small to medium businesses and NFPs. The wage subsidy for trainees and apprentices is available. State and Territory tax relief measures and ATO administrative relief measures are announced.