COVID-19
Business Package

GET UPTO $100,000 IN CASH

COVID-19
Stage 2 Stimulus Package

The Federal Government has announced stage 2 of its economic plan to cushion the economic impact of coronavirus (COVID-19). We have pulled together the information that provides guidance on some of the stimulus measures announced prior to the passage of legislation. It builds on the first stimulus measures previously announced but introduces many new initiatives to help the economy deal with the direct and indirect impacts of the coronavirus.

To view stage 2 of the economic plan, click here.

COVID-19 Business Package

COVID-19
Stage 2 Stimulus Package

  • Providing Small Business cash payments upto $100,000
  • Guaranteeing Loans For Small Businesses
  • Increasing the insolvency and bankruptcy thresholds
  • Paying 50% of small business Apprentice wages to 30 September

Access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21

Economic Response to the Coronavirus

The Government is acting decisively in the national interest to support households and businesses and address the significant economic consequences of the Coronavirus.

While the full economic effects from the virus remain uncertain, the outlook has deteriorated since the Government’s initial Economic Response announced on 12 March 2020.

The spread of the virus worldwide has broadened, and is expected to be more prolonged. Governments, both international and domestic, have announced stricter mitigation measures to slow the spread of the virus, which are having significant economic impacts.

On 22 March the Government announced a second set of economic responses which, combined with our previous actions, total $189 billion across the forward estimates, representing 9.7 per cent of annual GDP.

These actions provide timely support to affected workers, businesses and the broader community.

The Government’s economic response targets three areas:

The Australian Government is providing financial assistance to Australians. This assistance includes income support payments, payments to support households and temporary early releases of superannuation.

  • Income support for individuals
  • Payments to support households
  • Temporary early release of superannuation
  • Temporarily reducing superannuation minimum drawdown rates
  • Reducing social security deeming rates

The Australian Government is supporting Australian businesses to manage cash flow challenges and retain employees. Assistance includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.

  • Boosting cash flow for employers
  • Temporary relief for financially distressed businesses
  • Increasing the instant asset write-off
  • Backing business investment
  • Supporting apprentices and trainees

The Government, the Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to ensure the flow of credit in the Australian economy. Timely access to credit is vital for businesses to manage the impacts of the Coronavirus.

  • Support for immediate cash flow needs for SMEs
  • Quick and efficient access to credit for small business
  • Reserve Bank of Australia – Supporting the flow and reducing the cost of credit
  • Support for non-ADI and smaller ADI lenders in the securitisation market
  • Australian Prudential Regulation Authority – Ensuring banks are well placed to lend

The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme will support up to $40 billion of lending to SMEs.

Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.

The Scheme will enhance lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus.

The Scheme will be available for new loans made by participating lenders until 30 September 2020.

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