M & C Accountants comments
This weekend or at least Sunday 22 March 2020 was definitely one we will remember. Together with Stage 1 Lock-downs, Prime Minister Scott Morrison released a Second stimulus package to help the economy. (For stimulus 1 refer to our previous article and Facebook posts on 16 March 2020 and 20 March 2020)
The motto of the government is that by supporting small and medium business to keep people employed (as they together employ 68% of our workforce) and injecting money into the economy through social welfare hopefully those laid off will still be able to pay their bills.
M & C Accountants suggest you call or email us to go through your situation and work out which measures will suit your needs best during this time. We will then communicate with the relevant bodies or point you in the right direction and complete all necessary paperwork for you.
This $66b stimulus is to be injected into the economy as follows;
Casuals and Sole traders
If you are currently making less than $1075 a fortnight you will be eligible to a coronavirus supplement of $550 per fortnight for the next 6 months.
- This payment is accessible through Centrelink.
- You will need to make a declaration to Centrelink that you business has been suspended or turnover has significantly reduced due to the coronavirus.
- This is on top of any other benefits you may be receiving or entitled to.
Casuals receiving a jobseeker payment, parenting payment, special benefit, farm household allowance or sole traders who’s income or hours have reduced by 20% or more you can access up to $10k from your superannuation fund Tax-Free.
- this financial year and again next financial year
- Applications to withdraw super will need to be made through myGov.
- To withdraw $10k this financial year you will need to apply before 30 June 2020.
Households
If you are not eligible to receive the coronavirus supplement of $550 per fortnight you may still be able to claim a $750 stimulus payment.
- This payment is not available to those in receipts of the $550 per fortnight coronavirus supplement.
- This payment will be made automatically from Monday 13 July 2020 on top of the one to be made in April to about 5 million Australian to people receiving the age pension, carers allowance, family tax benefit and Commonwealth senior card holders
- Click on this link to see a full list of who is eligible https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf
Pensioners
The deeming rates used to calculate how much pension you are entitled will be reduced from 1 May 2020 to 0.25% and 2.25%. If you were previously affected by these rates your pension will increase. The government expects 900,000 pensioners to benefit
Self funded retirees, account based pensions minimum withdrawal rates will also be halved for the current 2020 financial year and the 2021 financial year.
Employers who want to keep staff
Not for profits and small businesses with turnover of <$50m will receive a Tax-Free cash payment of between $10k to $50k to help them keep staff and continue operating
- To be eligible a business must be registered as an employer and pay a wage.
- The payment is to assist business continue to operate, retain staff and pay bills such as rent and utilities.
- This will be for the July to September and October to December 2020 BAS.
Regulatory protection and financial support for businesses to stay in business
The Government has pledged to guarantee 50% of new loans issued by eligible lenders to small and medium enterprises. (A total of $20b to fund $40b of small to medium enterprises loans)
The government has also reiterated that it plans to cut red tape to allow small to medium enterprises access credit faster.
Up to $715m to support the Australian airlines and airports.
Temporary relief for financially distressed businesses
The government is also temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to these demands.
The Corporations Act will be amended to provide temporary targeted relief for companies to deal with unforeseen events that arise due to the coronavirus.
Enhancements to First stimulus package!!
Employers will receive 100% of tax withheld from wages up to $50k
- previously 50% of amount withheld and up to a maximum of $25k
Employers will receive a minimum payment of $10k even is there is no PAYG to be withheld - - previously $2k
This Tax-Free payment will be available from 28 April 2020
More stimulus packages are planned and will be released as things unfold. In the meantime stay safe.