Market and Business Update #4 – COVID-19 & Federal Stimulus Package Posted on March 13, 2020
Yesterday, The Australian Federal Government announced a stimulus package for the economy. This has significant relevance to the small and medium business sector.
There are six key measures valued at $17.6billion – 90% of which will be paid to business and individuals between 31 March and mid-April.
- Wage subsidies for Apprentices and Trainees
- Discounted Business Activity Statements or Instalment Activity Statement
- Faster depreciation on business asset costs
- Tax deductions on asset spending
- Fee waivers for small business
- One-off welfare payments, including pensioners.
You can read the Prime Ministers address here.
The government will review the effectiveness of the stimulus and write adaptations into the May budget if need be.
This is intended to contribute 2 per cent of GDP in the March 2020 quarter.
The investment market had a difficult day yesterday, and has been compared to 1987’s Black Monday. There will be buying opportunities to come, and tax strategies available to relieve pressure. The wise approach at this stage is to maintain a long-term perspective on your investments.
Every individual and business has its own needs and we are here to advise you on the best strategies to help you be better off in the long run. Please contact us if you would like to discuss your financial situation.
“Tough times never last, but tough people do”Robert H Schuller.