COVID-19 Stimulus Package – Stage 2
On 22 March the Government announced the details of the second stimulus package. Parliament is sitting today to pass this legislation which will provide us with more guidance as to how these will work.
The key points of this are:
Payments to Support Households
There will be a second $750 payment to social security recipients in addition to the previously announced payment. There will also be a Coronavirus supplement payable to those on the Job Seeker allowance of $550 per fortnight payable for the next 6 months.
Early Release of Superannuation
Eligible Individuals in financial stress will be able to access $10,000 from their superannuation prior to 30 June 2020 and an additional $10,000 from 1 July 2020 for approximately 3 months. This will need to be applied for through the ATO.
Temporary Reduction in Superannuation minimum draw down Rates
The minimum pension requirement to be drawn down will be halved for the 2019-20 & 2020-21 financial years.
Boosting Cash Flow for Employers
The previously announced tax free payment of $2,000 – $25,000 has been modified.
The minimum payment will be increased to $10,000 with an upper limit of $50,000 and will include not for profit organisations. The payment will be based on $100% of an employers pay as you go withholding for the period 1 January 2020 to 30 June 2020 and will be available from 28 April.
A second payment will follow from 28 July equal to the first (so a total minimum of $20k and maximum of $100k)
These payments are available to eligible active employers that were established prior to 12 March. These payments will automatically be made as part of the activity statement lodgement program.
Victorian Government Announcement
Further to the federal government’s announcements, the Victorian state government has also announced an economic survival package to support businesses. A key element of this is an adjustment to payroll tax. There will be a full refund for Victorian payroll tax paid for the 2019-20 financial year to date for employers with a payroll of less than $3 million.
You can find further information on the COVID-19 Stimulus Package that was announced on the 16th March, 2020 here.