COVID-19 – The Government is acting to support the economy.
In response to COVID-19 the Government is acting to support the economy. The $12.1 billion package includes:
- a wage subsidy scheme
- leave and self-isolation support
- business cash flow and tax measures.
Wage subsidy scheme
Wage subsidies will be available for all employers that are significantly impacted by COVID-19 and are struggling to retain employees as a result. The scheme will be open to all businesses, including sole traders and the self-employed.
Wage subsidies will be available for businesses in all sectors and all regions that can show a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue).
Leave and self-isolation support
Workers and businesses have an important role in slowing the spread of COVID-19.
The COVID-19 leave and self-isolation scheme financially supports workers to self-isolate, or stay home when sick with COVID-19. Helping businesses and workers to do the right thing.
The COVID-19 Leave Payment is available for people who:
- need to self-isolate
- cannot work because they are sick with COVID-19
- cannot work because they are caring for dependents who are required to self-isolate, or who are sick with COVID-19.
Business cash flow and tax measures include:
- increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021
- increasing the small asset depreciation threshold from $500 to $1,000 — and to $5,000 for the 2020/21 tax year
- allowing depreciation on commercial and industrial buildings from 2020/2021
- removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.
Wider $12.1 billion package
Other elements of the $12.1 billion package include income support, and further investment in the health response.