Australian Government announced another $66 billion package to boost the economy that has hit a rough patch amid coronavirus pandemic. The economic package contains relief for small businesses, workers, households, job seekers and pensioners who have suffered a \ blow in these tough times. The Government braces the nation for the upcoming Coronavirus led lockdown (to cut the transmission chain of the virus) by announcing another round of relief totaling the economic assistance package to $189 billion. The package will benefit the low-income vulnerable section reeling under the corona- crisis. Read below to find out what the economic package actually means and how will it benefit the Aussies.
- Another $750 supplement for welfare recipients
- Jobseeker payments to double with additional $550 every fortnight
- Access to $10,000 of superannuation amount tax-free
- Unsecured small business loans guaranteed up to $250,000
- Small Business Employers to get tax free cash up to $100,000 to retain staff and operations
- Deeming rates reduced by further 0.25% for Pensioners
- There will be more packages and more support in future, says PM Mr. Morrison
Additional cash relief for Welfare recipients
Every welfare recipient that is approximately 5 million Australians will receive 2 nd round of $750 relief from July 13. 1 st round of payment of 750 dollars announced in first stimulus package will come on 31 st March. Even if you don’t meet the eligibility criteria to get Coronavirus package, you can still claim the 750 dollars from economic assistance. The amount will be transferred from July 13 to approximately 5 million Australians including people who are already receiving other welfare support like pension, carer allowance, family tax benefit or Commonwealth senior holders. Additionally, for the Sole Traders and Casual Workers who are making less than $1075 a fortnight, the Australian Government has announced that Jobseeker Payment that was previously known as Newstart will be temporarily doubled and additional 550 dollars will be transferred every fortnight for the next six months. For instance, if you got a $612 as jobseeker payment for being single with dependent child, and you meet the eligibility criteria, now you will receive $1162 a fortnight for the next six months that nearly double doubles their jobseeker payment. Sole traders and casual workers whose working hours are cut by 20 percent or more due to Coronavirus are eligible to access up to $10,000 of their superannuation in 2020-21 and 2021-22 tax
Deeming Rates reduced for pensioners
Deeming rates are used to access pension income and tells how much amount a person will receive in their pension. Starting from May lower deeming rate will be 0.25 percent and upper deeming rate will be 2.25 percent. National seniors estimated that pensioners will receive an average increased income of $219 per year after the first 750 dollars stimulus. $100,000 tax free cash to Small Business Employers to retain staff and operations All small businesses with annual turnover of less than $50 million will receive a tax-free cash relief of $10,000. The package is not meant for the employees but intended to retain staff and stimulate the economy. PM notes that, this attempt by the Australian government will help the vulnerable low middle and middle-income groups sail through the current crisis. Prime Minister Morrison prompted that this is just the beginning and more packages will be announced in the future. Brace yourself to battle the Coronavirus and be ready for upcoming lockdown in whole of Australia and done let it mess with your financial status.