Businesses and Employers are the worst affected by COVI-19. With not even have the money to pay rent, most small businesses have foreclosed themselves, letting their employees go. So the economy is crushing itself, however government has come up with below mentioned measures to give boost to Businesses and Employers:
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JobKeeper Payment:
This payment scheme is a temporary subsidy for businesses that are significantly affected by COVID-19. This scheme allows eligible employers, sole traders and other entities to apply to receive $1,500 per eligible employee per fortnight. This is paid to employers only. The ATO does not make payments directly to employees. To be eligible for this payment, you and your employees must meet certain criteria.
This measure will enable the employers to hold on to their staff as the government is paying them $1,500 per fortnight. Hence, when the situation turns they don’t look for new employees and waste time to recover the economy.
This will also help employees not to leave their current employer to keep receiving $1,500 per fortnight. -
Boosting Cash Flow for Employers:
Eligible businesses and not for profit organisations who employ staff will receive between $20,000 to $100,000 by lodging their activity statements up to the month or quarter of September 2020.
This measure will support small and medium businesses and and not for profit organizations affected by COVID-19.
This cash flow boosts will be delivered as credits in the activity statements. This will be equivalent to the amount withheld from wages paid to employees for each monthly and quarterly period from March to June 2020.
An additional cash flow boost will be applied at the time of lodging monthly or quarterly activity statements from June to September 2020.
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Increasing the Instant asset write off:
Under instant asset write-off eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.
From 12 March 2020 untill 30 June 2020, the instant asset write off threshold is $150,000 (up from $30,000). The eligibility range covers businesses with an aggregated turnover of less than $500 million.
From 1 July 2020, the instant asset write off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
