Treasurer Josh Frydenberg wants Australian households and businesses to "spend up" their share of the federal government to support confidence and domestic demand in the economy.
The Government will provide a one-off $750 payment to around 6.5 million social security, which will support confidence and domestic demand in the economy to stave off recession caused by the coronavirus outbreak.
These two measures are designed to support employing small and medium enterprises and to improve business confidence:
- Boosting cash flow for employers:
The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff. The payment will be exempt from taxation and will not count as income for Social Security, Farm Household Allowance and Veteran payments.
This measure will benefit around 690,000 businesses employing around 7.8 million people.
- Supporting apprentices and trainees:
The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
This measure will support up to 70,000 small businesses, employing around 117,000 apprentices.
To support regions most significantly affected by the Coronavirus outbreak, the Government has set aside $1 billion.
During the 9 months from 1 January 2020 to 30 September 2020, Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid, he Government is supporting small business to retain their apprentices and trainees.
The one-off payment will be paid automatically from 31 March 2020 by Services Australia or the Department of Veterans’ Affairs. Over 90 per cent of payments will be made by mid-April 2020.