Prime Minister Scott Morrison announced a $66 billion worth of measures today as part of the Morrison Government's second economic stimulus package, including relief for retirees and a new wage or "safety net" for workers who lose their jobs.
"There is a lot of pain coming but we're going to cushion the blow as best we can," Mr Morrison said.
Early Release to Access Your Superannuation
Eligible individuals in financial stress will be able to apply online through myGov for access of up to $10,000 of their superannuation from April, 2020. They will also be able to access up to a further $10,000 from 1 July 2020.
These withdrawals will be tax-free and available to those who are eligible for the coronavirus supplement as well as sole traders who have seen that hours work, or income fall, 20% or more as a result of the coronavirus.
Applications will be made online. Through a simple declaration to the tax office.
Temporarily reduce superannuation minimum drawdown rates
The government is temporarily reducing superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This measure will benefit retirees by providing them with more flexibility as to how they manage their superannuation assets.
Small Business and Not-for-Profits
Eligible not-for-profits and small businesses with turnovers under $50 million will be given a tax-free, cash payment of up to $100,000 with a minimum payment of $20,000 to keep their staff employed during the coronavirus crisis. This is a increase from a minimum of $2,000 to a maximum of $25,000 announced in the first stimulus package.
The payments will be delivered by the Tax Office as a credit on activity statements from 28th April.
Government to Guarantee Eligible Loans
The federal government will also guarantee 50% through the participating bank of an eligible loan to a small or medium-sized business hit by the impact of the virus.
The guarantee will cover loans granted within six months, from April 1 and used for working capital and be unsecured. It will apply to new or existing customers of banks and non-bank lenders. The maximum loan will be $250,000, for a term of up to three years and will not apply to re-financing an existing customer.
Lenders will not be charged a fee for accessing the scheme, and it will be repayment-free for six months.
Bankruptcy Relief
The government is proposing to increase the threshold at which a creditor can take action to initiate insolvency or bankruptcy from as low as $2,000 today to $20,000 and giving companies and individuals six months instead of 21 days to respond.
Relief for directors for personal liability when the company is trading while insolvent is also been made avialable.
This relief will be provided over the next six months and will be vital to help companies get through this period.
Payments for Households
In addition to the $750 stimulus payment announced on 12 March 2020, the government will provide a further $750 payment to social security and veteran income support recipients and eligible concession card holders, except for those who are receiving an income support payment that is eligible to receive the coronavirus supplement.
This second payment will be made automatically from 13 July 2020 to around 5 million social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners.
The first payment will be made from 31 March 2020 to people who will have been on one of the eligible payments any time between 12 March 2020 and 13 April 2020.
Reducing Social Security Deeming Rates
On top of the deeming rate changes made at the time of the first package, the government is reducing the deeming rates by a further 0.25 percentage points to reflect the latest rate reductions by the RBA.
As of 1 May 2020, the lower deeming rate will be 0.25 per cent and the upper deeming rate will be 2.25 per cent.
JobSeeker payment to be doubled
The government is temporarily expanding eligibility to income support payments and establishing a new, time-limited coronavirus supplement to be paid at a rate of $550 per fortnight.
This will be paid to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
The coronavirus supplement will be paid for the next 6 months. Eligible income support recipients will receive the full amount of the $550 coronavirus supplement on top of their payment each fortnight.
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