Here’s what you need to know about the second stimulus package and most importantly, how to claim them if you are eligible:
Benefits to Business
Key Points
- Eligible not-for-profits and small businesses will receive a tax-free, cash payment of between $20,000 and $100,000
- The commonwealth is offering to guarantee unsecured loans of up to $250,000
Boosting cash flow for employers
- Expanding on the previous package, the Government is providing up to $100,000, under two payments, to eligible small and medium-sized businesses, and not-for-profits (NFPs) that employ people.
- Businesses that pay salary and wages but are not required to withheld tax will receive a minimum payment of $20,000 instead of $2,000 in the first package.
- Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000.
Eligibility & How to claim:
- Eligible not-for-profits and small businesses will receive a tax-free, cash payment of between $20,000 and $100,000
- The commonwealth is offering to guarantee unsecured loans of up to $250,000
Temporary 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, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.
- The ATO will tailor solutions for owners or directors of business that are currently struggling due to the Coronavirus, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.
Eligibility & How to claim:
- Generally, you are eligible if your business is affected by the COVID-19 downturn.
- payment plan / deferral can be negotiated with ATO or any other creditors based on your business and financial scenario.
Support for immediate cash flow needs for SMEs
- Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders to support new short-term unsecured loans to SMEs for unto $250,000 in an unsecured loan.
- No repayment for the first six months and then an interest rate of 4.5% will apply.
Eligibility & How to claim:
- Eligibility is yet to be released by the big four banks, but,they have indicated it would be much easier to secure a loan as 50% of the loan value is guaranteed by the Government.
- From the beginning of Apr 2020, banks will start accepting this application.We will also update you once more details available regarding the eligibility.
As this unprecedented situation evolves rapidly, we are committed to doing our very best to support you. Should you have any queries on the above matters please do not hesitate to contact us.
Benefits to individuals
Key Points
- Eligible recipients will receive coronavirus supplement payment of $550 per fortnight
- Two separate payments of $750 to the eligible income support recipients
- Individuals affected by coronavirus can access up-to $20,000 of their superannuation
The Coronavirus Supplement
- 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.
- Over the next six months, the coronavirus supplement of $550 will be paid to eligible income support recipients on top of their original payments each fortnight.s
Eligibility & How to claim:
- This will be paid to both existing and new recipients of JobSeekerPayment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
- You must need to register with Centrelink (if not done so yet and access via myGov) to claim. Please DO NOT GO TO A CENTRELINK OFFICE. They are overwhelmed, and it is dangerous for the spread of the virus, both for others and for you and your family. The article from ABC is also a great resource:ABC Article
Payments to support households
- 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
- The second payment will not be made to those eligible for the Coronavirus supplement.
Eligibility & How to claim:
- You must be registered with Centrelink, and they will automatically assess and pay these benefits
Temporary early release of superannuation
- The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
- Individuals will not need to pay tax on amounts released, and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
- Under the new regime, from mid-April eligible individuals can withdraw up to $10,000 from their super before 1 July 2020 and a up to a further $10,000 for a defined period after 1 July 2020 —providing a maximum of $20,000 per person. The exact timing of the regime is still to be confirmed.
Eligibility & How to claim:
- Eligible individuals are those:
- who are unemployed; or
- who are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
- who on or after 1 January 2020:
- was made redundant;
- had their working hours reduced by 20% or more; or
- in the case of sole traders, had their business suspended or experienced a reduction in turnover of 20% or more.
- If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website. Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF).