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New Australian Stimulus Packages
●April 9, 2020●5 minute read
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What do the new Australian stimulus packages entail?
Billions of dollars are being put into the Australian economy to offset the damage to businesses and employment rates from the coronavirus pandemic. However, millions have found themselves unemployed and forced to shut their doors. The question many Australians may ask is, what exactly do you get from all this government spending? In the past few weeks, the Federal and State government have announced a range of Australian stimulus packages available. Jacaranda’s here to make it easy for you to get all the information you need to know!
What exactly do you get from the stimulus packages?
On March the 12th 2020, the Federal Government released a $17.6 billion stimulus package which targeted businesses and welfare recipients. 10 days later a second package was announced which was worth $66 billion. The Government returned with a $130 billion wage subsidy plan 8 days later. To gain a full understanding, let’s have a look at what each one means and how it might benefit you.
$17.6 Billion Federal Australian Stimulus Package
- A $750 one-off cash payment will be given to welfare recipients. 6.5 million Australians will receive this including those on the age pension, Family Tax Benefit, Youth Allowance, Newstart, Austudy, Disability Support and parenting and carer payments.
- The instant asset write-off threshold has been increased from $30,000 to $150,000. Businesses with an aggregated annual turnover of less than $500 million (up from $50 million) have expanded access.
- Up to 70,000 eligible employers can get a wage subsidy worth 50 per cent of apprentice or trainee wages.
- Around 690,000 small and medium businesses will receive a tax-free payment of $2000 to $25,000. Employers will be eligible if they have a turnover of up to $50 million.
- Services Australia will offer a Major Personal Crisis exemption for 14 days to workers who fall sick or need to be isolated.
$66.1 billion Federal Australian Stimulus package
- For new and existing recipients of JobSeeker, Youth Allowance, Parenting Payments, Farm Household Allowances and Special Benefits they will receive payments of $550 per fortnight over the next six months, on top of existing payments.
- An extra $750 payment to social security, veteran income support recipients and eligible concession cardholders.
- Individuals in hardship can now access $10,000 of their superannuation in 2019-20 and $10,000 in 2020-21.
- To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% in the 2019–20 and the 2020–21 financial years.
- The Reserve Bank of Australia has cut interest rates from 0.5 per to 0.25 per cent, effectively as low as rates can go.
- Up to $100,000 in payments for small and medium businesses to help with operating costs.
- Government guarantee of 50 percent for new small and medium business loans through eligible lenders.
Temporary Hold on Evictions
With the financial uncertainty of the coronavirus, many Australian’s are struggling to make rental payments. With that in mind, the National Cabinet agreed to put a temporary hold on evictions over the next six months for commercial and residential tenancies which have been affected by the Coronavirus.
What does this actually mean?
While this may be true, many tenants may find they will have to pay accumulated rent once the temporary hold is over. With this in mind, tenants do have the choice to try and figure out another option with their landlord. As the COVID-19 crisis continues to unfold, we will likely see government rules and regulations change.
New $130 Billion Wage Subsidy Plan
The government has now announced a $130 billion Job Keeper payment. This will help more Australians keep their jobs and support businesses. This allows them to receive funds for up to 6 months. Therefore around 6 million workers will receive a fortnightly payment of $1500 (before tax) through their employer. The JobKeeper payment is about 70 per cent of the median wage and a little more than the minimum wage. Employers can top-up payments with actual pay or through annual leave and also have the option to pay superannuation.
Who is eligible?
- All workers, full-time, part-time and casual, however, they have to have been with their employer for at least a year.
- Businesses that have lost 30 percent of their turnover. The business will also be eligible if they’ve lost 50 percent and normally take in annual revenue over $1 billion.
- If you’ve been made redundant or unemployed, you cannot. However, if your employer has stood down you, you can.
- New Zealanders living in Australia
- Must be over 16 years of age
New $1.3 billion Supporting Apprentices and Trainees package
As of April 2, employers can register to receive a 50 percent subsidy for wages paid to apprentices between January to March of this year. All apprentices or trainees must have been in training with the small business since 1 March 2020. The subsidy will cover wages paid from 1 January 2020 to 30 September 2020. Businesses can be reimbursed up to $7,000 per quarter (to a maximum of $21,000) per eligible team member. Any final claims for payment will need to be lodged by 31 December 2020.
Will there be more?
The State and Federal Governments are still in negotiations about further measures to help tenants manage their rental payments. On the other hand, the Government is still finalising the details of its $130 billion Job Keeper program. If you’d like the latest information and updates, head to the Australian Government’s website. You can also download the official government “Coronavirus Australia” app from most online stores.
For the latest news on the Coronavirus outbreak worldwide, check out News.com.au’s coverage.
How Jacaranda Can Help
If you’ve found yourself in need of a small financial boost, Jacaranda might be able to help you. At Jacaranda, we may be able to consider your loan application even if you’re on Centrelink benefits. While traditional lenders may not give you a loan while receiving Government benefits, we like to give everyone a fair go. We’ll fully assess your situation to determine whether you’re in a position to receive and repay a personal loan. If you can meet our eligibility criteria, we will treat your Centrelink repayments just like any other regular income.
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Written by Jacaranda Team