The key takeaways from yesterday’s announcement is as follows:
Access to Superannuation:
Access to $20,000 out of super tax free to be claimed over the next two financial years.
What that means is before 30 June you can claim $10,000 and after 1 July you can claim another $10,000.
Who does this help?
– Sole Traders
– Those who have just lost their jobs
– Small business owners
$550 Centrelink Benefits Boost
A six-month coronavirus supplement of $550 a fortnight will be given to existing and new recipients of benefits including JobSeeker, Youth Allowance, Parenting Payment recipients, Farm Household Allowance recipients and Special Benefits.
This will be ON TOP of the $750 stimulus payment to be paid by 31 March 2020.
Business Assistance
The Government has announced a range of measures to assist SME’s in an effort to retain as many staff as possible.
This includes:
– 6 month Interest free loans up to $250,000 underwritten by the Government and the banks
– Withholding income tax from wages paid rather than paying it to the ATO to keep cashflow within the business
– Relaxation of Corporations Act allowing businesses to trade insolvent for a 6 month period.
This is on top of the previously announced packages for SME’s.
Many of you are full time employees who are lucky enough to work from home during this difficult period. It may be disappointing to see that you won’t qualify from these changes however this is a community issue and the Government needs to support those who need it most. SME’s employ 5million Australians, many in hospitality, travel and beauty will lose their businesses and jobs however when this is over, we need these people back, healthy and ready to get back to their normal lives.
