On 12 March 2020, the Federal Government announced its comprehensive package (AUD17.6 billion) of measures to respond to the current economic challenges confronting the Australian economy as a result of the continued spread of the coronavirus (COVID-19). The focus of the package is on “backing business and keeping Australians in jobs” and from a tax perspective, includes significant concessions for capital investment from today in the form of enhanced tax write-offs for depreciable assets, as well as cash flow assistance to small and medium-sized businesses.
As the global spread of COVID-19 continues, the economic impacts both locally and overseas are just beginning to be felt. The tax concessions and cash flow support announced on 12 March 2020 will be welcomed by many small and medium businesses, although practical challenges will remain.
