The federal government's $17.6 billion economic stimulus package has been given the thumbs up from parts of the accommodation sector, as operators navigate an increasingly challenging climate.

In the first stimulus measures to be announced since the GFC, Prime Minister Scott Morrison pledged $3.2 billion of accelerated depreciation would be made available to businesses with a turnover of less than $500 million, as well as $1.3 billion to provide wage subsidies. 

Small and medium-sized businesses will receive up to $25,000 to cover the costs of employee wages and salaries, paid by the Australian Taxation Office based on tax withheld.

Government stimulus package - At a glance: 

• $700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
• $3.2 billion to back business investment by providing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions.
• $6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses.
• $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees.

Tourism Accommodation Australia CEO Michael Johnson said the measures included in Thursday's announcement would see immediate financial support and incentives to an accommodation industry facing the unprecedented challenge caused by coronavirus.

“The substantial increase in the instant asset write-off threshold will encourage many businesses to invest in new equipment over the remainder of the financial year," he said.

img_1919.jpg

Deputy Prime Minister Michael McCormack with Tourism Accommodation Australia CEO Michael Johnson. Source: TAA

"The $3.2 billion accelerated depreciation measure available to those businesses with a turnover of less than $500 million will enable greater deductions and will deliver meaningful assistance to many accommodation providers.

"Both of these accounting measures will entice businesses to invest while supporting the important investments in assets they had already made.

Mr Johnson said other measures such as $1 billion to assist severely affected regions through the waiver of specific fees and charges, along with the development of measures to further promote domestic tourism were clearly targeted towards the sector.

"The Government also announced administrative relief for certain tax obligations, which will provide respite for businesses under pressure to meet their commitments," he said.

“This is a comprehensive assistance package which encourages investment, delivers immediate support and will help ensure as many jobs as possible are secured during this challenging time – it will require close monitoring to make sure it achieves the required results for industry and allows it to survive while preparing for a successful business recovery.

“It is a package that will deliver practical assistance to Australia’s accommodation providers and we commend the Federal Government for their considered and targeted approach.”

Similar to this: 

Qantas to reduce capacity by 'almost a quarter' in response to coronavirus

Air New Zealand announces reduction of flights in the midst of coronavirus outbreak

Queensland Government brings forward launch of $1 million Cairns tourism package