Economic Stimulus Package

Media Release

12 March, 2020

The Pharmacy Guild of Australia welcomes the announcement today of a $17 billion economic stimulus package, some of which will directly benefit community pharmacy businesses at a very challenging time.

Included in the measures designed to assist the economy to withstand the pressures imposed by the COVID-19 crisis are a direct cash input to small businesses that employ staff and expanded instant depreciation provisions.

To assist the cash flow of businesses during the economic downturn associated with coronavirus, the Government will make payments up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide tax-free cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020.

Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000. Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.

The Guild also welcomes the announcement that the instant asset tax write off threshold will be increased from $30,000 to $150,000 and will be available for businesses with aggregate annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

There’ll also be 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.

The National President of the Pharmacy Guild, George Tambassis, said: “This is a very timely and necessary move by the Government at a time when many community pharmacies – along with other businesses across the economy – are feeling stress and facing challenges thrown up by the onset of COVID-19. We welcome the measures that have been announced because they will directly support Australia’s 5,700 community pharmacies and the more than 60,000 staff directly employed in the industry.”

 Source: The Pharmacy Guild of Australia.