On Sunday 22 March 2020, the Commonwealth Government released the second stage of the economic plan to cushion the economic impact of the coronavirus and help build a bridge to recovery.
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 Reserve Bank of Australia (RBA) and $15 billion from the Government to deliver easier access to finance, and $66.1 billion in today’s economic support package.
Our economic support package includes:
- Support for households including casuals, sole-traders, retirees and those on income support
- Assistance for businesses to keep people in a job
- Regulatory protection and financial support for businesses to stay in business
Assistance to business to keep people in a job
Boosting Cash Flow for Employers
Provides up to $100,000 back to small and medium-sized businesses, with a minimum payment of $20,000 for eligible businesses. The payments will provide cash flow support to businesses with a turnover of less than $50 million and not-for-profit entities that employ staff. The payment will be tax free.
Click here for further information on eligibility, timing and examples of how this payment can help your business.
Regulatory protection and financial support for businesses to stay in business
Coronavirus SME Guarantee Scheme
The Government, Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to support the flow of credit in the Australian economy, in particular for small and medium enterprises (SMEs).
Click here for more information.
Providing temporary relief for financially distressed businesses
There is a temporary increase to 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. This includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act.
Click here for more information on the elements of this package.
For full media release, click here.
MPA SA will provide more information as it becomes available.