ECONOMIC RESPONSE TO CORONAVIRUS - FACT SHEETS

New Government information has been released responding to business support surrounding Coronavirus.  

The assistance aims to support cash-flow for businesses and includes temporary measures to help provide relief for financially distressed businesses.

Below you will find a summary and a link to the latest fact sheets.


Cash flow assistance for businesses

Summary: The Government is providing up to $100,000 to eligible small and medium sized businesses, and not-for- profits (including charities) that employ people, with a minimum payment of $20,000. These payments will help businesses' and not-for-profits' cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.

Full fact sheet.


Temporary relief for financially distressed businesses

Summary:

  • A temporary increase in threshold at which creditors can issue statutory demand and the time companies have to respond to statutory demands they receive;
  • A temporary increase in threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice, and extending the period of protection a debtor receives after making a declaration of intention to present a debtor's petition;
  • Temporary relief for directors from any personal liability for trading while insolvent; and
  • Providing temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.

Full fact sheet. 


Early access to superannuation

Summary: Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation).

Full fact sheet. 


Income support for individuals

Summary: Temporary expansion of eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.

Full fact sheet. 


Payments to support households

Summary: The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders.

Full fact sheet. 


Delivering support for business investments

Summary: The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

Full fact sheet. 


Assistance for severely affected regions and sectors

Summary: The Government has set aside an initial $1 billion to support those regions, communities and industries that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education. The $1 billion will be spent through existing or newly established Government programs or initiatives.

Full fact sheet. 


If you would like to make an urgent appointment to see one of the team, please call our office on 02 6566 2200 or email admin@wrightsca.com.au. Please note, in the interest of keeping our clients and staff safe, we are conducting phone and online consultations only at this point.

We will be posting updates about the Stimulus Package for business as we receive them on our website and via our Facebook and LinkedIn Pages.


Source: treasury.gov.au