Economic Response to the Corona Virus Cash Flow Assistance for Business
Written by Sheppard-Hanson-Accountants on March 23, 2020 in Practice Updates

Economic Response to the Corona Virus

Cash Flow Assistance for Business

This assistance will assist businesses to manage cashflow challenges and help businesses retain their employees. These two measures are designed to support employing small and medium sized businesses and to improve business confidence. The Boosting Cash Flow for Employers measure also supports the activities of not-for-profits (including charities) at a time where they are facing increased demand for services.
The wage subsidy for apprentices and trainees will help to ensure the continued development of the skilled workforce.

Continue Reading: ↔  Assistance for Business Cash Flow

Payments to Support Households

These payments will provide assistance to lower income Australians, including pensioners, other social security and veteran income support recipients and eligible concession card holders.

SUPPORT PAYMENTS

Summary
The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. These payments will support households to manage the economic impact of the Coronavirus.

  • The first payment (announced on 12 March 2020) will be available to people who are eligible payment recipients and concession card holders at any time from 12 March 2020 to 13 April 2020 inclusive.
  • The second payment will be available to people who are eligible payment recipients and concession card holders on 10 July 2020.

Continue Reading: ↔ Extra Centrelink Payments

Income Support for Individuals

The Government is providing support for individuals to assist them during the next six months.

INCREASED AND ACCELERATED INCOME SUPPORT

Summary
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 supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.

Continue Reading: ↔ Individuals Income Report

Providing Support for Retirees

The Government is helping retirees to manage the impact of volatility in financial markets on their retirement savings by temporarily reducing superannuation minimum drawdown requirements. The Government is also reducing social security deeming rates in recognition of the impact of the low interest rates on savings.

Summary
The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for the 2019-20 and 2020-21 income years.

Continue Reading: ↔ Self Funded Retirees

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