DESPITE A RECENT surge in positive COVID-19 cases for Victoria, the infection rates detected by its testing blitz have remained at a very low 0.2%.
And so, that would suggest the virus is not widespread within the community.
Furthermore, there hasn’t been any marked increase in the number of cases actually requiring hospitalisation.
AMID THE COVID-19 pandemic, the government has announced several stimulus packages to help Australian businesses. If you’re a business or property owner, here is what you need to know.
More business owners will be able to claim the instant asset write-off this financial year. The government announced an increase of the instant asset write-off threshold from $30,000 to $150,000.
The increase has also been extended to include business with an aggregated annual turnover of up to $500 million.
The instant asset write-off expansion is now in place and will be until 30 June 2020.
This fifteen-month incentive will support business investment by accelerating depreciation deductions for remaining assets not affected by the immediate write-off changes.
Different rules apply to whether an entity is using the simplified rules of capital allowances for small businesses.
Small businesses with an aggregated turnover of up to $10 million can take advantage of the Backing Business Investment incentive. They can deduct 57.5% of the asset cost in the year of purchase.
In later years, the asset will be depreciated as part of the general small business pool rules.
Businesses with an annual turnover of up to $500 million will be able to deduct fifty per cent of the asset cost, plus an additional amount of the standard depreciation on the remaining balance, in the year of purchase.
It’s important to note that both the instant asset write-off and backing business investment incentives are only available to business owners. This means landlords who own a commercial building (but do not use the building for business operations) cannot claim the incentives.
As you’d be aware, the government has also announced a mandatory code of conduct for commercial tenancies.
This mandatory code introduced a number of good-faith principles to guide negotiations between tenants and landlords, where a tenant has been affected by COVID-19.
Some inclusions involve rental waivers, deferrals and disallowing lease terminations. And you can find out more about the principles here.
SEVERAL CLIENTS have been asking about how long until things start to get back to “normal”. And what changes investors need to watch for, after we emerged from lockdown.
During times of economic uncertainty, you should focus on the underlying fundamentals driving demand and investment. And these still remain strong.
In my view, you should see a stronger than expected recovery – provided various states don’t unnecessarily delay the steps needed to restart the economy. [Read more…]
IN REALITY, the Australian economy is showing solid growth in the metropolitan areas. And there is a flow-on effect into most regional cities – the only exceptions being those areas recently struck by drought and bushfires.
While not buoyant (and there may be a short-term pullback from natural disasters) … overall, the economic fundamentals look fine.
Therefore, we need to steer clear from unwittingly talking ourselves into recession. Because, as soon as confidence returns (and it will), consumers will start spending again. [Read more…]
RIGHT NOW, there is really nothing that can immediately ease the pain and suffering being felt by all the bushfire victims and emergency service providers.
And yet, the process of restoration and rebuilding may bring some unexpected benefits. [Read more…]
THERE WAS A FAVOURABLE response to the so-called Phase 1 breakthrough in the Trade Talks, between the US and China. And there’s been further positive developments this week.
However, it is actually worth reviewing where things stood before these recent events.
Despite political tensions, there has been little adverse impact on Australia’s trade with China. And the rapid increase in China’s share of our exports has been principally driven by higher iron ore prices. [Read more…]
ACCORDING TO JP MORGAN, the expected trade war should only shave about 0.07% off Australia’s GDP over the next couple of years. [Read more…]
WHAT AN AMAZING election result … although, I had always felt it would be a lot closer than everyone thought. Now many people are now asking how the pollsters could have got it so wrong?
In actual fact, they weren’t that far out. Rather, it was more a heavy bias in media coverage which fanned the Labor fever.
THE FINANCIAL INDUSTRY in general (and the major banks in particular) have been under the microscope recently as a result of the Royal Commission. And that has provided a steady stream of negative headlines for the banks over the past 12 months.
As a result, the banks have instituted a number of changes including: [Read more…]
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SURELY THE GENERAL PUBLIC aren’t that gullible? Maybe they are.
Everyone knows politicians tend to massage the truth to suit their purpose. However, it seams Bill Shorten is once again trying to mislead people – in much the same way as he did with the “Medi-scare” campaign, in the lead up to the last election. [Read more…]
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LAST WEEK, the Property Council of Australia released its 6-monthly update on the national Office Market to January 2018. And a few interesting things emerged. [Read more…]
