While the current coronavirus pandemic leads us through uncharted and unprecedented times, the Australian Government has announced a number of stimulus packages to assist businesses and workers.
For Individual and Households (including Employees, Sole Trader)
- Starting from 27 April 2020
- Eligible categories:
- Jobseeker payment receivers
- Youth allowance receivers
- Parenting payment receivers
- Farm household allowance receivers
- Special benefit recipients
- How to apply
- Phone call to Centrelink
Two separate payments of $750 to social security, veteran and other income support recipients and eligible concession card holders.
- Starting: the first payment will be available from 31 March 2020, and the second payment will be available from 13 July 2020.
- How to apply: this is an automatic payment made to your account from Centrelink if you are eligible.
Temporary Early Access to Superannuation
Eligible individuals will be able to access their super fund if they are experiencing financial hardship due to the Coronavirus.
Up to $10,000 can be accessed before 1 July 2020, and a further $10,000 after 1 July 2020. The amount released is tax free.
- Starting mid-April 2020
- Eligibility (satisfy any one or more of the following)
- Unemployed; or
- Jobseeker payment receivers, youth allowance receivers, etc; or
- After 1 January 2020, you were made redundant; or
- After 1 January 2020, your working hours were reduced by 20% or more; or
- After 1 January 2020, if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
- How to apply: MyGov
Temporary Reduce Superannuation Minimum Draw Down Rate
Reduced the superannuation draw down rate by 50% for 2019/20 and 2020/21 years;
- Commences immediately
For Businesses and Employers
Small and medium size business employers will receive a payment equal to 100% of their PAYG withheld.
From March to June quarter, the maximum payment is $50,000, and minimum is $10,000.
This payment will be paid as a credit to the business ATO activity account. It will be used to pay off any existing overdue payments. If this places the business in a refund position, the ATO will release the money within 14 days.
This is a tax-free payment.
- Timing: after employers lodge their activity statement.
- Small and medium sized business entities (SMEs) and non-for-profit entities (NFPs) with aggregated annual turnover under $50 million and that employ workers will be eligible.
- The employer of profitable organisations who registered PAYG withholding prior 12 March 2020.
- How to apply:
- This is an automatic payment calculated by the ATO. No application required.
Instant asset write-off expansion
The instant asset write-off threshold amount is increasing to $150,000.
The eligible businesses can claim an immediate deduction for asset costs less than $150,000.
- Starting from 12 March to 30 June 2020
- Businesses with an aggregated turnover of less than $500 million.
A significant wage subsidy program to assist employers and employees. Eligible employers receive $1,500 per fortnight for eligible employees for up to 26 weeks.
- Register interest from March 30
- Initial payments to be received in week 1 of May
Supporting Apprentices and Trainees
Wage assistance to help small businesses to keep their apprentices and trainees
- Applications are open from early April
The Australian Government’s announcements are updating every day, if you would like more details regarding the incentives, please look at the ATO website or Government webpages.
For advice on your current financial situation, please talk with your independent financial adviser.