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Federal Government Stimulus Package No.2

Federal Government Stimulus Package No.2

On the 22 March 2020, The Commonwealth Government  announced its second stage of its economic stimulus package to support the economy at this precarious time. These measures complement and in some cases replace announcements made on the 11 March.

Measures involve the following:


Coronavirus supplement

This consists of an additional $550 a fortnight for those people who are on Centrelink benefits. This applies to new and existing applicants to Centrelink and will be paid to eligible recipients for a period of 6 months.

It will be easier to receive these payments as the Government will be relaxing assets and income tests.


Household payments

There will be an additional $750 paid to those people who are on Centrelink benefits. This is in addition to the earlier amount of $750 that was announced on the 11 March 2020.


Early release of Superannuation

The Government will allow individuals in financial stress to access up to $10,000 in the 19/20 financial year and an extra $10,000 in the following 20/21 financial year. This will be a tax free amount and will have no impact on Centrelink eligibility.


Temporarily reduce superannuation  minimum drawdown rates

The Government is allowing the reduction on a temporary basis of the drawdown requirements for account based pensions made out of Self Managed Superannuation Funds and other Superannuation funds by 50%. This measure should give some flexibility to self-funded retirees.


Boosting Cash Flow for Employers

The Government is providing up to $100,000 to eligible businesses that employ people with a minimum of $20,000. These business will act as a boost to Employers to keep employing people and paying various business expenses.

This payment replaces the first announcement by effectively doubling the amount that employers receive.


Loan Guarantee scheme

Under this scheme, the Government will effectively guarantee 50% of new loans issued by lenders to Small and Medium businesses. (SME).

This announcement builds on the earlier decision by the Reserve Bank to get faster access to bank finance and the major bank’ s decision to offer more ready capital to businesses.


Relief for Financially Distressed Businesses.

The Government will amend the Corporations law to provide relief from creditors attempting to bankrupt businesses that owe them money.

It is hoped that these measures will attempt to cushion the blow for a dramatic decline in economic activity.