Coronavirus Targeted households to get $750 cash boost
Scott Morrison has announced a $17.6bn package to fight off a pandemic-sparked recession.
Targeted households will receive $750 one-off payments and $1 billion will be poured into regions hit by the coronavirus downturn as part of Scott Morrison’s $17.6bn package to fight off a pandemic-sparked recession.
Eligible small and medium businesses will receive a minimum $2000 payment and be given $1.3bn to keep apprentices in jobs as part of the “job saving” measures.
Treasury are hoping that the stimulus package will boost the economy by $22bn and avoid a negative quarter of growth in June. `
More than $10.9bn will be spent before the end of this financial year, and the Prime Minister said the whole $17.6bn package was worth 1.2 per cent of GDP and a “significant investment.”
“We have taken the decision to put this stimulus in place that has the obvious impact on the Budget outcome for 2019-20 and Australians understand that.
“Australians know that this needs to be the priority and our government agrees with that priority and that’s why we’ve taken the decision to put these measures in place.”
More than 5 million Australians on Newstart, pensions and family tax benefits will be eligible for the emergency cash payments.
Mr Morrison said he believed recipients would go out and spend that money, rather than save it and limit the stimulus.
“I believe their common sense has demonstrated in the wake, and in response, to previous situations like this that it speaks for itself,” the Prime Minister said.
“The cash payments have two purposes. And they’re both important. Of course, those who received them – that is obviously a benefit to them.
“But more importantly, frankly, it is about a cash injection into the Australian economy, which supports small businesses and supports medium businesses.
“That, in turn, supports the jobs, which means people can continue to participate positively in the economy and have greater confidence going forward.”
There will also be a $1bn regional communities fund to support regions affected by the hit to tourism and education sectors including waiving fees for tourism businesses operating in national parks and the Great Barrier Reef.
The Morrison Government has announced a $17.6b economic stimulus plan in response to the challenges posed by the #coronavirus.
— Josh Frydenberg (@JoshFrydenberg) March 12, 2020
We are focused on keeping Australians in jobs, keeping businesses in business & supporting the Australian economy.
MoreðŸ“https://t.co/IKz4qCjGUe pic.twitter.com/EHIG5uj1YN
Coronavirus stimulus plan: the detail
HELP FOR PENSIONERS AND WELFARE RECIPIENTS
■ Deeming rate cut by 50 basis points, with an average benefit of $219 a year
■ About 6.5 million people will get a $750 one-off, tax-free payment from March 31.
FOR CASUAL WORKERS
■ Immediate access to the sickness payment if they need to self-isolate.
TO HELP TOURISM AND TRADE
■ A $1 billion fund to help communities hurt by flow-on effects of the coronavirus.
FOR BUSINESS
■ About $6.7 billion over four years will go towards individual $25,000 tax-free payments for businesses turning over up to $50 million a year
■ The minimum payment for business will be $2000
■ The amount will be 50 per cent of tax withheld to the ATO on employees’ wages
■ The government hopes it will benefit 700,000 businesses and 7.8 million workers
■ From Friday to July 1, the instant asset write-off for businesses will be raised from $30,000 to $150,000
■ It will be expanded to businesses with an annual turnover of up to $500 million from $50 million previously, at a cost to the federal budget of $700 million
■ It’s expected to help 3.5 million businesses.
TO KEEP APPRENTICES EMPLOYED
■ Small businesses with fewer than 20 employees will get up to $7000 each quarter for every apprentice as a wage subsidy
■ Employers will get a wage subsidy equal to 50 per cent of the apprentice or trainee’s wage from January 1 to September 30
■ Apprentices must have been with a small business as at March 1
■ The total cost is expected to be $1.3 billion over two years.
Speaking today at the largest tax convention in Australia, Commissioner Chris Jordan reflects on how far we’ve come, recent achievements & goals for the future #TheTaxSummit pic.twitter.com/3vFRQePzG7
— ato.gov.au (@ato_gov_au) March 11, 2020
Tax office support for those affected by COVID-19
The ATO says it can tailor support plans to suit various needs
OPTIONS FOR BUSINESS
■ Deferring by up to four months the payment of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
■ Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting to get quicker access to GST refunds they may be entitled to
■ Allowing businesses to vary PAYG instalment amounts to zero for the April 2020 quarter, and claim a refund for instalments made for the September 2019 and December 2019 quarters
■ Remitting interest and penalties incurred on or after January 23 that have been applied to tax liabilities
■ Low-interest payment plans.
OTHER SERVICES
■ A temporary shopfront with staff specialising in assisting small business will be established in Cairns in the next few weeks
■ Other areas badly impacted by the virus could see similar services set up.
■ Individuals facing financial hardship and their tax agents can also get tax relief measures.
— with AAP
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