There has been a lot of broken reporting of the stimulus packages to date and we at OBrien Real Estate think it is supremely important for the community and of course our buyers, sellers, tenants or landlords to know about the huge assistance that is being offered.
Federally the Government has so far announced two Economic Stimulus packages, however, there is talk more stimulus will be announced on the Friday 27 March.
Here’s the majority of the stimulus from the Federal government so far.
- Coronavirus Supplement increased by $550 per fortnight payment for recipients of the JobSeeker Payment, Youth Allowance, Parenting Payment, Farm Household Allowance and Special Benefit for the next six months
- Early access to superannuation for struggling Australians. Eligible Aussies will be able to access up to $10,000 in FY 2019-2020 and a further $10,000 in 2020-2021. To take advantage of the offer, you will need to apply online through myGov before July 1.
- Temporary reduction of minimum super drawdown rates for account-based pensions and similar products by 50 per cent for 2019-2020 and 2020-2021. This is designed to benefit retirees by providing them with more flexibility in managing their super.
- An initial $750 for all households on welfare benefits, payment will also occur automatically from March 31.
- Businesses with a turnover of less than $500 million are eligible for an expanded instant asset write-off for asset investments of up to $150,000.
- Employers with less than 20 full-time employees may be entitled to apply for Government-funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage. The maximum subsidy for each apprentice/trainee is $21,000
- The Government will provide up to $250,000 to each business in new short-term unsecured loans to businesses with a turnover up to $50 million.
- An extra $750 for some households, including those on social security, veteran income support and eligible concession cardholders. This new payment will be made automatically from 1 July
- Cash rate reduced by 0.50% percentage points. Through the Reserve bank initiative, all Aussie banks are offering assistance to home loan holders and business owners. We encourage our sellers, buyers, tenants and landlords to speak to your bank on what assistance they can offer you. Many of the big 4 banks will offer a 6-month reprieve on either repayment and/or interest and will also support people on personal loans, hire purchase and equipment loans.
- Small and medium businesses with turnover under $50 million, along with not-for-profit charities, will be eligible for a tax-free cash payment of up to $100,000. The government is providing up to $100,000 that employ people, with a minimum payment of $20,000. The purpose of this payment is to keep the lights on and keep employees on the books.
- The government is temporarily relieving rules around bankruptcy laws to support financially distressed businesses in numerous ways, for instance, providing relief for directors from any personal liability from trading whilst insolvent.
As well as the Federal Government the Victorian Government has also announced the following support for businesses:.
– Payroll tax is being completely waived in 2019-20 for eligible businesses with taxable wages up to $3 million.
– Also, the 2020 renewable liquor licence fees are waived.
– All 2020 land is tax-deferred for people that have at least one non-residential property and total taxable landholdings below $1 million.
That is all the stimulus announced to date, there is talk of more stimulus being announced on Friday 27 March.