Since the upsurge of the Coronavirus, the commercial world has been the target of the unexpected event. More precisely, Australia, which has its main trading partners within Asia but especially with China.
So with Australia facing the pending economic crisis the Government has announced its COVID19 financial stimulus package in an attempt to halt and slow the dramatic slip in commerce due to the quarantine realities needed to stave off the virus spread and in turn avoid Australia slipping into recession.
The Morrison government and it’s $17.6b stimulus package hopes to stimulate the economy and assist SMEs to keeps its workforce.
Firstly, to help small businesses (less than 50 million turnover) with a tax reduction and provide them with up to $25,000 to help them pay their salary costs but also ability to immediate asset write-off up to $150k. This is aimed at protecting Australians from unemployment. Then, large companies (less than 500 million turnover) will also be supported in the future.
With 11 billions of this package to be spent before July 2020 and the remainder to be injected in to the economy by July 2021, it is an aggressive move which not many business owners will complain about even if it means that Australia will not be on track to achieve a budget surplus which until now has been the Government trump calling card.
All in all, it is a very much welcomed move as Australia faces down what has now become a global pandemic.