Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

Small business support bill passes Parliament

Adrian Flores
Adrian Flores
19 June 2020 1 minute readShare

Several amendments relating to extra support for small to medium businesses have passed both houses of Parliament, including adjustments to the cash-flow boost and an extension of the instant asset write-off.

The Treasury Laws Amendment (2020 Measures No. 3) Bill 2020 passed both houses of Parliament on 18 June 2020 and is awaiting royal assent.

The bill includes several amendments to the government’s Coronavirus Economic Response Package, including an extension of the $150,000 instant asset write-off threshold for another six months until 31 December 2020.

Access to the instant asset write-off has expanded to include businesses with aggregated annual turnover of less than $500 million, up from the former $50 million threshold.

“These measures will support over 3.5 million businesses. They are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the near term,” Treasurer Josh Frydenberg said.

Entities required to pay amounts under Division 13 in Schedule 1 to the TAA 1953, in relation to alienated personal services payments received in these periods, are also entitled to the cash-flow boost as part of efforts to clarify the Boosting Cash Flow for Employers Act 2020.

In addition, entities that may have received a cash-flow boost payment from the ATO on the basis of reporting that does not distinguish between amounts withheld under Subdivisions 12-B, 12-C and 12-D in Schedule 1 to the TAA 1953 and amounts payable under Division 13 in Schedule 1 to the TAA 1953 are not required to repay these amounts.

Another measure included in the bill is setting the PAYG instalment GDP adjustment factor as 0 per cent for the 2020–21 financial year.

The ATO said it will adopt the same PAYG instalment adjustment factor for GST instalments over the same period which is in line with past administration practice.

Small business support bill passes Parliament
mybusiness logo
Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?