The Federal Government has released a Second Economic Stimulus Package of $66 Billion now making their response in value of up to 9.7% of GDP. Here are the benefits you may be eligible for:
-$750 Payment to Social Security, Veteran, other Income Support recipients, Eligible Concessional Card Holders and Family Tax Benefit Recipients. This second payment is to be paid on July 13. This is in addition to the first payment of $750 due to be paid on 31 March. People eligible for the $550 payment at item 2 aren’t eligible for this payment. There is a difference between the people eligible for the first payment and people eligible for the second payment so please check the list for eligibility at https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf.
-$550 payment per Fortnight for 6 months for Newstart which is becoming Job Seeker Payment, Youth Allowance, Parenting Payment, Farm Household Allowance and Special Benefit payment. This payment is on top of the eligibility for these payments as a supplement that increases these benefit payments.
-Eligible Businesses with a Turnover of under $50 million were eligible for a tax free payment of up to $25,000 in the first Stimulus and this has been increased to up to $100,000. This is for business who employ staff and is given as a credit in the lodgement of Activity Statements of up to 50% of the PAYG Withholding on employee’s wages. It would appear that Business may be elgible for a tax free payment of $20,000 even if they are not required to withhold tax but presumably still employ staff.
-The Government is creating a scheme to guarantee up to 50% of Business Loans for up to 3 years.
-Access of up to $10,000 of superannuation for the 2020 Financial Year and also the 2021 Financial Year. This is normally available for people suffering financial hardship but the Government is removing the tax withholding on this payment and exempted this from Centrelink income tests.
-50% Reduction in the Minimum draw down on Account Based Pensions for the 2020 and 2021 Financial Years. The amount required to be withdrawn from your super fund for your pension payment will be halved, for example, people aged between 65 to 74 are required to withdraw 5% of their account balance as a pension payment and this will be reduced to 2.5%.
-Instant Asset Write Off for Small Businesses purchasing assets was increased from $30,000 to $150,000 in the first Stimulus Package. This has remained the same and continues to be available to at least 1 July 2020 or maybe 1 July 2021.
The Government has not ruled out providing further assistance. The Federal and State restrictions and shut downs are going to have a huge impact on the economy and as such we would expect more Stimulus Packages to come.
The Federal Government would normally release a Federal Budget in May but this has been postponed until at least October at this stage as they provide a more itemized response to the economic situation.
Good Cash Flow is Now a Priority