As the pandemic situation spreading like a bushfire worldwide, the Australia Government is spearheading economic reforms and policies to provide all the necessary support for households and businesses. The measures are significant to the address the rising economic consequences of the Coronavirus throughout the country. Predominantly, Govt. announced AUD 130 billion as a JobKeeper Payment Package to help the Australians in keeping the jobs and avoid layoffs.
A country that has suffered the most this year 2020, first the Bushfire and now the Covid-19 outbreak, but the country has never failed to provide the essential help and assistance to its people.
Below statements will give a panoramic view of economic benefits granted to Australians:
PROVIDING SUPPORT FOR INDIVIDUALS AND HOUSEHOLDS
- JobKeeper payment for Employees – Under this payment, around 6 million employees in Australia will be granted AUD 1500 (fortnightly payment) for maximum of six month through their employers.
- Income support for individuals – For the next six months, Govt. will extend the income support of AUD 550 (fortnightly payment) to the new recipients and those were already receiving JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
- Payments to support households – For households, Govt. will provide two separate payments will be made AUD 750 each (1st payment will be from 31st Mar 2020 & 2nd payment will be from 13th Jul 2020) to the veterans, concession card holders and other income support recipients.
- Early release of superannuation – Govt. will allow up to AUD 10,000 of their superannuation in 2019-20 and AUD 10,000 in 2020-21 for those affected by Coid-19.
- Reducing social security deeming rates – Govt. reduced both upper and lower social security deeming rates by 2.25% and 0.25% respectively. This will enable around 900,000 income support recipients, including 565,000 Pensioners, to receive AUD 324 as Pension in the first full year.
PROVIDING SUPPORT FOR BUSINESSES
- JobKeeper payment – For the impacted businesses, Govt. will provide the wage subsidy of AUD 1500 per employee (fortnightly payment) to continue paying the employees for a maximum of six months.
- Boosting cash flow for employers – Under this scheme, Govt. will grant from AUD 20,000 to AUD 100,000 to the eligible small and medium-sized businesses.
- Temporary relief for financially distressed businesses – Govt. is increasing the threshold at a point where creditors can propagate a statutory demand on a company. They have also increased the time that the companies have to respond to those statutory demands.
- Increasing the instant asset write-off – The instant asset write-off threshold will be increased from AUD 30,000 to AUD 150,000 to the businesses with annual turnover of less than AUD 500 million until 30th Jun 2020.
- Backing business investment – Govt. is launching 15 month investment incentive program to support business investment by accelerating depreciation deductions. Businesses with turnover of less than AUD 500 million, will be able to deduct 50% of the cost of an asset on installation.
- Supporting apprentices and trainees – Wage subsidy of 50% of the apprentice’s or trainee’s wage for the next 9 months can be claimed by employers. Wage subsidy may clock up to maximum of AUD 21,000 per apprentice or trainee.
- Support for Coronavirus-affected regions and communities – AUD 1 billion has bee1n distributed to the Coronavirus affected regions for the speedy recovery. An additional AUD 715 million is given to the airline industry as a relief measure.
PROVIDING SUPPORT FOR FLOW OF CREDIT
- Support for immediate cash flow needs for SMEs – Under this Scheme, Govt. will provide 50% to SME lenders which will accumulate up to AUD 40 billion to support new unsecured loans to SMEs.
- Quick and efficient access to credit for small business - Govt. is providing an exemption from lending obligations for lenders, which will help the small businesses to avail the credit immediately.
- Reserve Bank of Australia – Supporting the flow and reducing the cost of credit - The Reserve Bank of Australia announced a scheme that will have access to minimum AUD 90 billion in funds at a fixed interest of 0.25%. This will reduce funding costs for banks and help reduce interest rates for borrowers.
- Support for non-ADI and smaller ADI lenders in the securitisation market – Govt. will provide AUD 15 billion to AOFM for the investment in the finance markets of smaller lenders, including non-ADIs and smaller ADIs.
- Australian Prudential Regulation Authority - Ensuring banks are well placed to lend - The APRA has announced changes to the bank capital ratios that will support the banks that are lending to the customers.
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