Australia’s largest Stimulus Package, ever.
On 22 March 2020, the Government announced a second set of economic responses which, combined with previous actions, total $189 billion across forward projections, representing 9.7% of annual GDP.
These actions are aimed at supporting affected workers, businesses and broader Australia.
The Government is monitoring the situation very closely to ensure that Australia as a whole remains manageable and does not become an existential threat.
The Prime Minister, Scott Morrison had very important sentiments that should be remembered
“while these hardships and these sacrifices may break our hearts on occasion, we must not let them break our spirit. And we must not let them break our resolve as Australians”
This is unlikely to be the last stimulus package as it is relatively early days in this world-changing crisis. There will be no quick solution and we need remain level-headed and positive as a nation to get through to the other side.
The Second Stimulus
There are 3 main parts containing 10 separate initiatives:
- To support households, including casuals, sole traders, retirees and those on income support
- Provide assistance for businesses to keep people in a job
- Provide regulatory protection and financial support for businesses to stay in business
Here are the separate initiatives clearly defined:
- Boosting Cash flow for employers
- Supporting Apprentices and Trainees
- Temporary relief for financial distressed businesses
- Supporting the flow of credit
- Higher instant asset write-off threshold
- Coronavirus Supplement – $550 each fortnight for eligible individuals
- Additional Payments to Social Security, Veteran Income Support and Concession holders – $1500
- Temporary Early Access to Superannuation –$20,000 over 2 years
- Providing Support for Retirees – Reduction in Super Minimum Drawdown & Social Security Deeming Rates
Many of these initiatives require your business and/or your personal tax/financial situation to be up to date. If you need assistance, please reach out to our friendly accountants on 1300 865 199 or if you would like us to give you a call, book in a time here