Important Update: Stimulus Package COVID-19

Important Update: Stimulus Package COVID-19

During this unprecedented time, we are continuing to monitor the impacts of COVID-19 (Coronovirus) pandemic. We want to keep you informed with the Federal Government’s latest news and updates.

At Crest, our highest priority is the health and well-being of our people, our clients and our community. Our response measures to COVID-19 (Coronavirus) are aligned with the advice provided by health authorities.

We would like to reassure you that it’s business as usual here at Crest, we have state-of-the-art IT system that will allow us to work remotely and conduct client meetings through Skype, Zoom and telephone conferences.

Latest Update to the Economic Stimulus Package

On Sunday Prime Minister Scott Morrison unveiled a $66.1 billion support package, just 10 days after he announced an initial $17.6 billion package that included a supercharged instant asset write-off and SME cash payments.

A total of $189 billion is being injected into the economy by all arms of Government in order to keep Australians in work and businesses in business. To read the full statement click here.

SME cash payments

The second stimulus package will now build on the initial tax-free cash payments to small and medium businesses, rising to up to $100,000, with a minimum payment of $20,000, up from the previously announced $25,000 and $2,000 limits respectively.

The measure, which will be available to entities with aggregated annual turnover under $50 million that employ workers, has also now been extended to not-for-profits and charities.

The enhanced scheme will be delivered in two phases: Firstly, with employers set to receive a first payment equal to 100 per cent of PAYG withholding tax if a quarterly remitter, or 300 per cent of PAYG withholding if a monthly remitter, up to a maximum of $50,000, when businesses lodge their activity statements for the March 2020 to June 2020 quarters.

Eligible businesses that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.

Secondly, an additional payment equal to the first payment will be made after businesses lodge their June 2020 to September 2020 BAS.

Sole Trader support

The government will establish a new $550 fortnightly coronavirus supplement payment. Permanent employees who are stood down or lose their employment, sole traders, the self-employed, casual workers and contract workers will be able to access the new coronavirus supplement under expanded access to the JobSeeker Payment, formerly known as Newstart.

The supplement will also be paid to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.

Access to Superannuation

Employees who have been made redundant, or those who have their working hours reduced by 20 per cent or more, or sole traders whose businesses have been suspended or see a reduction in turnover by 20 per cent or more will also now be allowed to access up to $20,000 of their superannuation.

Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020, and be able to access up to a further $10,000 from 1 July 2020 for approximately three months.

Coronavirus Guarantee Scheme: unsecured loans for small & medium businesses

From 1 April 2020, eligible lenders will be able to provide unsecured loans of up to $250,000 for up to three years, with an initial six month repayment holiday.

Assistance to help pay the wages of apprentices or trainees

Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.

Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter). Read more about the assistance to help pay for the wages of your apprentices or trainees.

$500 million loan facility

The Government will create a new $500 million loan facility, interest free for the first 12 months, to support businesses to keep Queenslanders in work and extend the coronavirus payroll tax deferral to all businesses across the state – for more information click here.

To find our more information on financial assistance, eligibility and timing for the new government support for Australian businesses click here.

Additional Information
Banks to defer small-business loan repayments for 6 months

Small businesses will be allowed to defer loan repayments for six months under new emergency measures announced by the Australian Banking Association.

  • Repayment of $100 billion in small business loans put on hold amid coronavirus outbreak
  • The Banking Association expects that will put $8 billion back in small business’ pockets
  • The banks will consider home loan relief measures if households enter mortgage stress

Read full article.

In these unprecedented times we are here to support you and your business – we remain committed to you and are here to assist in any way we can. If you would like more information please contact us.

Disclaimer: This blog post is intended to provide a general summary only, the information is subject to change and should not be relied on as a substitute for professional advice.

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