Page 5 - Tropic Magazine Issue 223

ECONOMIC RESPONSE

ECONOMIC RESPONSE TO THE CORONAVIRUS

TO THE CORONAVIRUS Assistance to business to keep people This builds on the investment the Government

in a job is making to enable smaller lenders to continue
supporting Australian consumers and small
The Government is providing up to $100,000 to businesses, through providing the AOFM an
eligible small and medium-sized businesses, and not- investment capacity of $15 billion to invest in
for-profits (including charities) that employ people, with wholesale funding markets used by small authorised
a minimum payment of $20,000. These payments will deposit-taking institutions (ADI) and non-ADI lenders.
The Commonwealth Government has released the second stage of its help businesses’ and not-for-profits’ cash flow so they It further supports the Reserve Bank of Australia’s
can keep operating, pay their rent, electricity and other
economic plan to cushion the economic impact of the Coronavirus. bills and retain staff. announcement of a $90 billion term funding facility
for ADIs that will reduce the cost of lending, with
Under the enhanced scheme, employers will receive incentives to lend to small and medium enterprises.
Support for workers and households Early release of superannuation a payment equal to 100 per cent of their salary
and wages withheld (up from 50 per cent), with the The measures the Government has announced will
The Government will allow individuals in financial
Coronavirus supplement maximum payment being increased from $25,000 to deliver a total of $125 billion to support Australians get
stress as a result of the Coronavirus to access up $50,000. through the impact of the coronavirus.
The Government is temporarily expanding eligibility to $10,000 of their superannuation in 2019-20 and a
for income support payments and establishing a further $10,000 in 2020-21. The minimum payment will increase from $2,000 to The Government will guarantee up to $20 billion to
new, time-limited Coronavirus supplement to be paid Eligible individuals will be able to apply online $10,000 and be available from 28 April 2020. support $40 billion in SME loans.
at a rate of $550 per fortnight. This will be paid to both through myGov for access of up to $10,000 of their By linking the payments to business to staff wage tax
new and existing recipients of the JobSeeker superannuation before 1 July 2020. They will also be withholdings, businesses will be incentivised to hold Providing temporary relief for financially distressed
Payment, Youth Allowance jobseeker, Parenting able to access up to a further $10,000 from 1 July on to more of their workers. businesses
Payment, Farm Household Allowance and Special 2020 for another three months. They will not need The Government is temporarily increasing the
Benefit. to pay tax on amounts released and the money they The payments are tax free, there will be no new forms threshold at which creditors can issue a statutory
The Coronavirus supplement will be paid for the next 6 withdraw will not affect Centrelink or Veterans’ Affairs and payments will flow automatically. demand on a company and the time companies have
months. Eligible income support recipients will receive payments. This measure will benefit around 690,000 businesses to respond to statutory demands they receive. The
the full amount of the $550 Coronavirus supplement employing around 7.8 million people, and around package also includes temporary relief for directors
on top of their payment each fortnight. Temporarily reduce superannuation minimum 30,000 not-for-profits (including charities). from any personal liability for trading while insolvent.
drawdown rates The Corporations Act 2001 will be amended to
An increase of up to 5,000 staff for Services Australia Small and medium business entities with aggregated provide temporary and targeted relief for companies
will assist to support delivery of new Government The Government is temporarily reducing annual turnover under $50 million and that employ to deal with unforeseen events that arise as a result of
measures. superannuation minimum drawdown requirements for workers are eligible. NFP entities, including charities, the Coronavirus.
account-based pensions and similar products by 50 with aggregated annual turnover under $50 million and
Payments to support households per cent for 2019-20 and 2020-21. This measure will that employ workers will now also be eligible. This builds on the support for business investment
provided in our first economic support package, which
In addition to the $750 stimulus payment announced benefit retirees by providing them with more flexibility An additional payment is also being made from 28 included:
on 12 March 2020, the Government will provide a as to how they manage their superannuation assets. July 2020. Eligible entities will receive an additional
further $750 payment to social security and veteran payment equal to the total of all of the Boosting Cash • increasing the instant asset write-off;
income support recipients and eligible concession Reducing social security deeming rates Flow for Employers payments received. • backing business investment by providing
card holders, except for those who are receiving an On top of the deeming rate changes made at the time accelerated depreciation deductions;
income support payment that is eligible to receive the of the first package, the Government is reducing the Regulatory protection and financial support for
Coronavirus supplement. deeming rates by a further 0.25 percentage points to businesses to stay in business • supporting apprentices and trainees; and
reflect the latest rate reductions by the Reserve Bank • targeted support for Coronavirus-affected regions
This second payment will be made automatically The Government will establish the Coronavirus SME
from 13 July 2020 to around 5 million social security, of Australia. Guarantee Scheme which will support small and and communities.
veteran and other income support recipients and As of 1 May 2020, the lower deeming rate will be 0.25 medium enterprises (SMEs) and guarantee 50% of
eligible concession card holders. Around half of those per cent and the upper deeming rate will be 2.25 per new loans issued by eligible lenders to SMEs.
that benefit are pensioners. cent. The Government’s support will enhance lenders’
The first payment will be made from 31 March 2020 The change will benefit around 900,000 income willingness and ability to provide credit to SMEs. The
to people who will have been on one of the eligible support recipients, including Age Pensioners. Scheme will support $40 billion of lending to SMEs
payments any time between 12 March 2020 and 13 and complements the Government’s work to allow
April 2020. them to get access to credit faster.

For more information please visit australia.gov.au

Authorised by W. Entsch, Liberal National Party of Queensland, 200 Mulgrave Road, Westcourt QLD 4870. Authorised by W. Entsch, Liberal National Party of Queensland, 200 Mulgrave Road, Westcourt QLD 4870.