The Federal Government has released the second economic stimulus package to cushion the economic impact of Covid-19 and help build a bridge to recovery.
The new measures include $66 billion to provide further relief to help businesses and individuals hit by Covid-19.
The new package will include the following key measures:
For Business – Reduction in PAYG wage withholding
- 100% of PAYG wage withholding refunded to $100,000 increased from $25,000 (with a minimum payment of $20,000 increased from $2,000); Available for not-for-profits and small businesses employing people with turnover under $50 million.
- Payment is Tax-Free and will be delivered by the tax office as a credit on activity statements from late April. It is not a cash payment.
- Payable in two amounts of up to $50,000 based on March Quarter and June Quarter wages
Supplement for income support recipients and welfare recipients
- The payment of $550 per fortnight over the next six months and can be available for sole traders and casual workers if they meet income tests.
- The second $750 cash payment from 13 July for welfare recipients in addition to the $750 stimulus payment announced ten days ago (you will get this if you are not already receiving a payment under the Coronavirus Supplement)
Superannuation
- Early release of superannuation capped at $10,000 per year in 2019-20 and 2020-21 financial years if facing financial hardship due to the coronavirus pandemic. Applications will be done through myGov.
- Reducing minimum Pension Drawdowns by 50% for 2019/20 and 2020/21 Financial Years.
Insolvency limit
- The threshold of $2,000 at which a creditor can take action and issue a payment demand has been increased to $20,000 and providing 6 months instead of 21 days to respond.
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Should you have any questions, or want to know how this can help you please do not hesitate to contact our office.
In the meantime, we’ll keep providing updates over the coming weeks and months.
The Blackburns Team
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