Covid-19 Stimulus Package 2

To our dear clients,

We are all facing an incredibly trying time for our economy, businesses, employees and retirees.  The second economic stimulus package announced yesterday by Prime Minister Morrison and Treasurer Frydenberg has been designed to stem the drain many businesses will feel on their cash flow, and support those individuals who find themselves with limited income.

This latest round of initiatives includes:

• An increase in the Tax-free grants to small – medium sized businesses with employees from $2000 – $20,000, to now $10,000 – $50,000 this financial year, with a further $10,000 – $50,000 in the next financial year.
• Adjustments to time periods and threshholds for financially distressed businesses, including director penalty adjustments for insolvent trading, creditor demand adjustments and bankruptcy
• Apprentice and trainee wage support of $7000 per employee per quarter
• Government supported (to 50%) loans of up to $250,000, with banks excused from responsible lending criteria
• Temporary early release of superannuation (up to $10,000 tax-free this and next financial year) for sole traders affected
• Newstart eligibility fast-tracked and Covid-19 bonus payments made to recipients
• A reduction in the deeming rates (for pension recipients) and a halving of the minimum pension payment requirements for SMSF pension-paying members.
• There will be some extensions on tax lodgements in this period, which will be elaborated in further announcements.

A number of factsheets can be accessed from the NSW Treasury website.

We want all of our clients to know that we are here for you, and will be doing everything in our power to help you through this time.

I urge you to remain kind and supportive, think outside the box, trim non-essential expenditure and look after each other.

As things are revealed we will keep you posted, on LinkedIn, Facebook and by email.

Please contact us if you need help.