The Government has announced a $17.6 billion investment package to support the economy as we brace for the impact of the coronavirus.
What’s in it for the horse industry?
The measures are largely targeted at businesses to assist them with investing in assets and people in the short term. The horse industry should widely benefit from these measures because it is a labour-intensive industry that also invests heavily in capital equipment. For commercial breeders, this may mean a tax benefit for buying a large piece of equipment such as a float or tractor. For horse trainers and syndicators, the instant asset write-off could apply to shares in racehorses that they hold as part of their business.
For the large majority of small to medium horse businesses, the tax-free payments up to $25,000 to help cover wages before the period to 30 June 2020 will be most welcome.
In saying all of that, we all face unique business risk and challenges that will adversely affect functionality and profitability and for some it may be financially dire. It is very true often but especially now, CASH IS KING.
The yet to be legislated four part package focuses on business investment, sustaining employers and driving cash into the economy.
1. Business investment
• Increase and extension of the instant asset write-off
• Accelerated depreciation deductions
2. Cash flow assistance for small and medium sized business
• Tax-free payments up to $25,000 for employers
• Wage subsidy of up to 50% of an apprentice or trainee wage
3. Targeted support for severely affected sectors, regions and communities
4. Household stimulus payments to drive cash into the economy
• Tax-free $750 payment to social welfare recipients