Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

Coalition unveils $20bn stimulus package

  • March 12 2020
  • Share

Invest

Coalition unveils $20bn stimulus package

By Cameron Micallef
March 12 2020

The Coalition government has announced a raft of stimulus packages targeted at businesses and households, following the coronavirus outbreak which has turned markets bearish and left the economy facing a recession.

Scott Morrison and Josh Frydenberg

Coalition unveils $20bn stimulus package

author image
  • March 12 2020
  • Share

The Coalition government has announced a raft of stimulus packages targeted at businesses and households, following the coronavirus outbreak which has turned markets bearish and left the economy facing a recession.

Scott Morrison and Josh Frydenberg

Households will receive a stimulus payment of $750, with pensioners making up half of those who receive the payments, Prime Minister Scott Morrison confirmed in a statement this morning. This is predicted to help 6.5 million Australians.

While it is not part of the stimulus package, pensioners have received an additional bonus with deeming rates falling for pension recipients. 

Employees will be able to access a sickness payment, which will be called the jobseeker payment, if they are a casual staff member, the Prime Minister noted in his speech.

Cash payments for businesses, wage subsidies for apprentices and an expansion of the instant asset write-off aimed at the sales of motor vehicles, tools and equipment will form the centrepiece of the business boost, which will start before April.

Advertisement
Advertisement

“We are dealing with the economic issues to keep Australians in jobs and business in business,” Mr Morrison said.

Mr Morrison highlighted how the package would look after younger Australians through paying wages, while supporting businesses with less than $50 million in turnover with support through their BAS.

“An important one today is the around 120,000 apprentices that would be at risk, that we are going to pay half their wage,” Mr Morrison continued.

Under the scheme, an eligible business that withholds tax for the Australian Taxation Office on employees salary and wages will receive payments of up to 50 per cent of the amount withheld, up to a maximum payment of $25,000.

The Prime Minister’s announcement will mean $3 out of $4 will go back into the economy.

Mr Morrison believes the package is just under 1 per cent of the total Australian economy and that the federal government is in a position to ramp up spending if required.

“It’s scalable and we have a budget coming up in a month’s time and the government is always in a position to do what it needs to do because it got the budget in balance,” Mr Morrison said.

The government’s stimulus package comes off the back of sharp market falls which have seen Australian equities go from a bull to a bear market in three weeks.

nestegg has a page dedicated to the latest updates around the coronavirus and its impacts on the economy and share markets. Stay up to date here

Coalition unveils $20bn stimulus package
Scott Morrison and Josh Frydenberg
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.