COVID-19 CRISIS How the Australian Government Stimulus Can Help You
What’s in it for individuals?
Expansion to the eligibility of income support payments and established a new, time-limited Coronavirus supplement to be paid [$550 per fortnight] for both existing and new recipients of the eligible payment categories.
Two household support payments of $750 each to social security, veteran and other income support recipients and eligible concession card holders. Payable in March 2020 and July 2020.
Temporary release of superannuation to individuals affected by COVID-19. Limits apply to $10,000 per 2020 & 2021 financial years. These amounts will be tax free and you must satisfy specific criteria.
Temporarily reduced the minimum drawdown requirements of account based pensions and similar accounts by 50% for the 2020 + 2021 financial years.
What’s in it for your business?
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. In addition, the minimum payment is being increased from $2,000 to $10,000.
An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.
The Government will guarantee 50% of new unsecured loans for businesses with turnover under $50 million. The Government will provide eligible lenders with a guarantee for loans – conditions apply – see fact sheet for more detail.
Designed to protect businesses as a result of the economic impacts of Coronavirus. The elements of the package provide a safety net to make sure when the crisis is over they can return to business as usual. See the fact sheet for more details.
For owners or directors of a business that are currently struggling due to the Coronavirus, the ATO will tailor solutions for their circumstances, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.
The information contained in this blog is in the nature of general comment and to be used for information purposes only. This is not to be relied upon or taken as advice.
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