Please find below a summary of the suite of fiscal measures aimed at cushioning the blow from the coronavirus downturn in the second stage of the Governments economic plan.
There is a wealth of information available and the Australian Government Fact Sheet provided by the Treasury provides a more detailed overview of these measures as well as a number of examples explaining how they will work in practice.
The Governments second $66 billion economic support package includes:
- Support for households including casuals, sole-traders, retirees and those on income support;
- Assistance for businesses to keep people in a job; and
- Regulatory protection and financial support for businesses to stay in business.
Support for Business
The Australian Government is supporting Australian businesses to manage cash flow challenges and retain employees. Assistance includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.
Boosting Cash Flow for Employers
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.
Coronavirus SME Guarantee Scheme
Establishment of Coronavirus SME Guarantee Scheme to support small and medium enterprises (SMEs) to get access to working capital to help them get them through the impact of the coronavirus.
The Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.
Relief for Financially Distressed Businesses
The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
The package also includes temporary relief for directors from any personal liability for trading while insolvent.
The Government is also implementing changes to Superannuation.
Early Release of Superannuation
Individuals in financial stress as a result of the Coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
Reduce Superannuation Minimum Drawdown Rates
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.