What’s in the $66b second virus stimulus

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Colin Brinsden and Katina Curtis
(Australian Associated Press)

 

THE $66B SECOND CORONVIRUS STIMULUS PLAN

SUPPORT FOR WORKERS, RETIREES AND HOUSEHOLDS

  • Time-limited $550 per fortnight supplement for both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
  • A further $750 payment to social security and veteran income support recipients and eligible concession cardholders.
  • Individuals in financial stress can access up to $10,000 tax-free of their superannuation in 2019/20 and a further $10,000 in 2020/21.
  • Temporary reduction in the superannuation minimum drawdown requirements by 50 per cent for 2019/20 and 2020/21, providing retirees with more flexibility as to how they manage their superannuation assets.
  • Deeming rates reduced by a further 0.25 percentage points to reflect the latest rate reductions by the Reserve Bank, making the lower deeming rate 0.25 per cent and the upper deeming rate 2.25 per cent.

 

EXPANDED CASH FLOW INJECTION TO SMALL BUSINESS

  • Another $25.2 billion over four years for individual $100,000 tax-free payments for businesses turning over up to $50 million a year
  • The minimum payment for business will be $20,000
  • The amount will be 100 per cent of tax withheld to the ATO on employees’ wages
  • The government hopes it will benefit 690,000 businesses and 7.8 million workers
  • About 30,000 not-for-profits will also be eligible
  • Adds to the $6.7 billion in payments already announced

 

LOAN GUARANTEES

  • Government will guarantee 50 per cent of unsecured loans taken out by small businesses in the six months starting from April 1, 2020 with banks who join the scheme
  • Loans can be up to $250,000 over a three-year term
  • Loans won’t have repayments on them for the first six months
  • Won’t apply to existing customers refinancing
  • Scheme is worth $20 billion, for total lending of $40 billion

 

WHAT IS ALREADY ON THE TABLE FROM FIRST PACKAGE

  • A $750 one-off, tax-free payment from March 31 for about 6.5 million pensioners and people on welfare
  • A $1 billion tourism and trade fund for communities hurt by coronavirus flow-on effects

 

FOR BUSINESS

  • Expanded instant asset write-off from July 1, rising from $30,000 to $150,000 and available to businesses with an annual turnover of up to $500 million instead of $50 million
  • Businesses with a turnover of less than $500 million can deduct an extra 50 per cent of asset costs in depreciation
  • Small businesses with fewer than 20 employees will get up to $7000 each quarter for apprentices as a wage subsidy, equal to half the apprentice or trainee’s wage from January 1 to September 30
  • $90 billion from the Reserve Bank and $15 billion from the government for banks to provide low-interest loans to business
  • Banks to give business affected by the coronavirus crisis a six-month holiday from loan repayments

 

FOR AGED CARE

  • $234.9 million for a “retention bonus” to ensure the continuity of the workforce in both residential and home care
  • Direct care workers will receive payments of up to $800 after tax per quarter, for two quarters
  • In-home carers will receive payments of up to $600 after tax per quarter, for two quarters
  • $78.3 million in additional funding for residential care to support continuity of workforce supply
  • $26.9 million for a temporary 30 per cent increase to the Residential and Home Care Viability Supplements and the Homeless Supplement
  • $92.2 million to home care providers and organisations, including meals on wheels, to offer services for people in self-isolation such as shopping and meal delivery
  • $12.3 million to cut call waiting times on the My Aged Care service.
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