PRIME MINISTER MEDIA RELEASE UPDATE (Key points) | March 22 - 2pm AEDST
* A total of $189 billion is being injected into the economy by all arms of Government in order to keep Australians in work and businesses in business.
This includes $17.6 billion for the Government’s first economic stimulus package, $90 billion from the RBA and $15 billion from the Government to deliver easier access to finance, and $66.1 billion in today’s economic support package.
* Boosting Cash Flow for Employers The Government is providing up to $100,000 to eligible small and medium sized businesses, and not-forprofits (including charities) that employ people, with a minimum payment of $20,000.
These payments will help businesses’ and not-for-profits’ cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff. Under the enhanced scheme from the first package, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000.
In addition, the minimum payment is being increased from $2,000 to $10,000. The payment will be available from 28 April 2020.
By linking the payments to business to staff wage tax withholdings, businesses will be incentivised to hold on to more of their workers. The payments are tax free, there will be no new forms and payments will flow automatically through the ATO.
This measure will benefit around 690,000 businesses employing around 7.8 million people, and around 30,000 NFPs (including charities). Small and medium business entities with aggregated annual turnover under $50 million and that employ workers are eligible.
NFPs entities, including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible. This will support employment at a time where NFPs are facing increasing demand for services.
An additional payment is also being made from 28 July 2020. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments received. This measure is estimated to cost $31.9 billion over the forward estimates period, including the value of the measure announced in the first package.
Providing temporary relief for financially distressed businesses The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
The package also includes temporary relief for directors from any personal liability for trading while insolvent.
The Corporations Act 2001 will be amended to provide temporary and targeted relief for companies to deal with unforeseen events that arise as a result of the Coronavirus.
• This builds on the support for business and business investment provided in our first economic support package, which included:
• increasing the instant asset write off
• backing business investment by providing accelerated depreciation deductions
• supporting apprentices and trainees
• targeted support for Coronavirus-affected regions and communities
Supporting Australian workers and business - March 22 - DOWNLOAD DOCUMENT
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