Scott Morrison – $17.6 billion stimulus.

$17.6 billion in stimulus measures in response to coronavirus.

Scott Morrison has announced $17.6 billion in economic stimulus, so what’s in it for you?

The Federal Government has announced a $17.6 billion economic stimulus package in a bid to keep Australians in jobs as the economy takes a hit from the spread of coronavirus.

Scott Morrison is hopeful the package would provide an  immediate stimulus to the economy amid fears of recession. 

Who will get a stimulus payment?

Here’s what each group will receive:

  • Welfare recipients: an extra $750 per person.

4.8 billion to provide a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders.Around half of those that will benefit are pensioners.The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and Veteran payments.

There will be one payment per eligible recipient. If a person qualifies for the one off payment in multiple ways, they will only receive one payment.Mr Morrison also said casual workers who contracted COVID-19, or had to isolate themselves, would be eligible for a Newstart welfare payment while out of work.

  • Small businesses with apprentices: up to $21,000 to keep apprentices in work through wage subsidies.

Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

  • Small to medium-sized businesses: between $2,000 and $25,000 to help with cashflow.

The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free.This measure will benefit around 690,000 businesses employing around 7.8 million people.

Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.

  • Businesses generally (excluding the very largest): the instant asset write-off threshold raised to $150,000 and an extra depreciation discount to encourage investment.

$700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

For example, assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.

  • Affected businesses: access to a new $1 billion fund

Will we get more money?

The initial stimulus package from the Rudd government in response to the global financial crisis (GFC) was worth $10 billion, while a second three months later was worth $42 billion.

Mr Morrison indicated earlier this week that the economic impact of the coronavirus could be worse than the global financial crisis.

He flagged there might be more spending in the May budget, but said in relation to Thursday’s announcement: “We believe these measures are the measures that can do the job and we will continue to monitor events as we go forward.”

State and territory leaders are meeting with the Prime Minister on Thursday night and will discuss further measures.

If you would like more information on your eligibility please contact our office.

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