Government Assistance for Businesses & Households

Government Assistance for Businesses & Households

Over the weekend, the Australian Government announced its economic support package to help Australians who are under financial stress as a result of the Coronavirus.

For Individuals

• Coronavirus supplement of $550 per fortnight paid to eligible individuals.
• The government will waive the asset test and waiting period for the jobseeker allowance

For Households

• From July 13, a further $750 payment will be made to those on income support that are not eligible for the coronavirus supplement. This covers 5.2 million Australians, including those receiving the age pension, a carers allowance, family tax benefit and the Commonwealth senior card
• Early release of superannuation up to $10,000 in FY2020 and FY2021 where no tax is required to be paid and will not affect their Centrelink or Veteran’s Affairs Payment.
• Reduction of superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent in FY2020 and FY2021.
• Government to reduce deeming rates by a further quarter of a percent to reflect the recent Reserve Bank interest rate cut.

For Businesses

• All employing businesses will receive at least $20,000, all employing small businesses will receive at least $20,000 and some of the larger SMEs will receive up to $100,000.
• Eligible employers can apply for a wage subsidy of 50 per cent of apprentice’s or trainee’s wages from 1 January 2020 to 30 September 2020.
• Providing temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies and temporary increase in thresholds for creditors to deal with unforeseen events arose from the Coronavirus health crisis.
• Increase in instant asset write-off from $30,000 to $150,000 to all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
• Limited 15-month investment incentive (through to 30 June 2021) where eligible businesses will be able to deduct 50 per cent of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
• $1 billion set aside to support regions most significantly affect by Coronavirus outbreak and recovery.