The Australian federal government has announced its second stimulus package to help the Australian economy worth an extra $66 billion.
Here are some of the highlights:
As announced on 22 March, the government is providing up to $100,000 to eligible small and medium sized businesses and not-for-profits (including charities) that employ people, with a minimum payment of $20,000 (under both payments).
Under the enhanced scheme, eligible employers that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100% of the amount withheld (up from 50%), with a:
minimum payment of $10,000 (even if they are not required to withhold tax).
maximum payment of $50,000.
The payments will only be available to active eligible employers established before 12 March 2020.
A corona virus income supplement:
Eligible income support recipients will receive the full amount of the $550 coronavirus supplement on top of their payment each fortnight.
What about the $750 payment?
The first $750 payment aimed at boosting domestic demand in the economy.
The government has announced another $750 payment to social security and veteran income support recipients and eligible concession cardholders.
However, Australians who receive the $550 will not be eligible for the extra $750.
Temporarily reducing superannuation minimum drawdown rates:
The government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for 2019–20 and 2020–21.
On 12 March 2020, the government is also reducing by a further 0.25 percentage points in addition to the 0.5 percentage point reduction to both the upper and lower social security deeming rates.
FOR MORE INFORMATION:
- Australian Government’s economic response to coronavirus, visit https://treasury.gov.au/coronavirus