Stimulus Relief Posted on March 24, 2020
The Federal and State Government Stimulus Package is the most significant since war time. It totals to more than $189 billion across the forward estimates, representing 9.7 per cent of annual GDP.
This article includes a top-line summary of support available for individuals, households and businesses. Our team of Accountants and Financial Planners are working with clients to access and apply the stimulus for survival through this crisis. We are also holding a webinar on the evening of Wednesday 8 April to run through what is available.
| Who | How much | When | Reference |
| Existing and new recipients of Centrelink payments including Jobseeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit. | Pay increase of $550 per fortnight. | Now. | Click here for more info |
| Social security, veteran and other income support recipients and eligible concession card holders, including pensioners. | 2 x $750 payments. | The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. | Click here for more info |
| Financially distressed individuals. | Temporary early release of superannuation with access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21 tax free. | 2019-20 and 2020-21. | Click here for more info |
| Account-based retirees. | Temporarily reducing superannuation minimum drawdown rates for account-based pensions and similar products by 50 per cent. | 2019-20 and 2020-21. | Click here for more info |
| Income support recipients including Age Pensioners. | 0.5 percentage point reduction in both the upper and lower social security deeming rates resulting in a pay increase of around $105 per fortnight. | Now. | Click here for more info |
| Small and medium-sized business entities with aggregated annual turnover under $50 million and that employ workers. | At least $20,000 up to a total of $100,000 to help with cash flow payments for rent, electricity, other bills and staff wages. Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. | Up to 50% now, then matched again in July-October quarter. | Click here for more info |
| Businesses in financial distress. | Further leniency including increasing the threshold at which creditors can issue a statutory demand on a company and to initiate bankrupt proceedings against an individual as well as temporarily increasing the time companies and individuals have to respond to statutory demands they receive. | Now | Click here for more info |
| Businesses with aggregated annual turnover of less than $500 million | Instant asset write-off threshold increase from $30,000 to $150,000. | Now until 30 June. | Click here for more info |
| Businesses with a turnover of less than $500 million. | 50 per cent deduction of the cost of an eligible asset costing >$150,000 on installation, with existing depreciation rules applying to the balance of the asset’s cost. | Now til 30 June 2021 | Click here for more info |
| Businesses who employ Trainees and Apprentices | 50 per cent of the apprentice’s or trainee’s wage. | 9 months from 1 January 2020 to 30 September 2020. | Click here for more info |
| Businesses with bank loans. | The Government will provide a guarantee of 50 per cent to SME lenders to support new short-term unsecured loans to SMEs up to $250,000. The Australian Banking Association has also announced deferral options for small businesses with loans. | Now. | Click here for more info |
| Businesses with payrolls of up to $10 million for three months to June 2020. | Payroll tax waiver. | Until June 2020. | Click here for more info |
Further stimulus will be injected into projects and industries around us to further support the economy.
Please be aware of online scammers taking advantage of people needing access to these new measures. Use government links for your information and work with a reputable accountant to structure financial security.
