What does the Government Stimulus Package Mean for You?

On the 22 March the Australian Government announced a second Coronavirus Stimulus package to help keep Australians in jobs, keep business in business and support households and the economy as the world deals with significant challenges posed by the spread of the coronavirus. What does this package mean for you?

Below is a summary of the key announcements.

• Eligible people are able to access $10,000 tax free from their super fund this financial year as well as an additional $10,000 next financial year.  This can be applied for via your MyGov account.  To find out more information and to see if you are eligible click here.
• The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This measure will benefit retirees holding these products by reducing the need to sell investment assets to fund minimum drawdown requirements.  There has also been a reduction to the deeming rates by a further 0.25%.  To access the fact sheet for Providing support to retirees click here.
• Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This will be paid to both existing and new recipients of JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.   The one week ordinary waiting period has been waived and reduced means testing implemented.  To access the fact sheet on Income Support for Individuals click here.
• The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. Around half of those that benefit are pensioners. This payment will help to support confidence and domestic demand in the economy. The second payment will not be made to those eligible for the Coronavirus supplement.  To access the fact sheet for Payments to Support Households click here.
• The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000. These payments will help businesses and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.  To access the fact sheet for cash flow assistance for business click here.

For additional information on support for businesses please refer to the treasury.gov.au website.  Should you have any questions please do not hesitate to contact our office on 1300 656 260.