Prime Minister Scott Morrison has announced a $66.1 billion economic lifeline, just 10 days after announcing an initial $17.6 billion package, with more help coming to those affected by the COVID-19 outbreak.
The new package, designed as a “safety net for workers”, is dedicated to combating the economic damage caused by the coronavirus pandemic.
A total of $189 billion has now been injected into the economy through two stimulus packages from the government, as well as $100 billion from Australia’s central bank.
Under the second package, the government will allow individuals in “financial stress” as a result of the coronavirus to have limited access to their superannuation savings.
Australian workers sacked or stood down will be able to take up to $20,000 from their superannuation account over the next two years.
As part of the government’s second stimulus package, it has established a new time-limited coronavirus supplement payment of $550 per fortnight for the next six months at a cost of $14 billion.
This will effectively double the rate of Newstart, which has been renamed to Jobseeker payments.
The maximum JobSeeker payment rate with a coronavirus supplement is now $1,162 per fortnight for a single with a dependent or child.
In the first package, the government announced that 6.5 million lower-income Australians would receive a one-off payment of $750 aimed at boosting domestic demand.
In the second package, the government announced an additional $750 payment to social security and veteran income support recipients and eligible concession cardholders.
However, this won’t be available if you get the $550 a fortnight coronavirus supplement.
The first payment will be made from 31 March 2020 to people eligible anytime between 12 March 2020 and 13 April 2020, with the second payment coming automatically from 13 July 2020.
Five million Australians, including those who receive the age pension and carer allowance will soon be able to claim up to $750 in stimulus payments.
The new measures in the second stimulus will also target small businesses and not for profits as they are eligible to receive tax-free cash payments of up to $100,000 to help them retain their staff and keep operating.
Not-for-profits that employ people will also be able to apply for a minimum payment of $20,000.
The measures are designed to help 690,000 businesses, which employ around 7.8 million Australians and about 30,000 not-for-profits, Mr Morrison said.
While the government has announced two changes in just two weeks, they have not ruled out the possibility of a third package.
About the author
Join the nestegg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
About the author
Join The Nest Egg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
most viewed
Economy
PM to give grants for home renovations
Tax refund
9 things you can and can’t claim tax on this year
Property
Can I claim capital allowance on my investment property?
Economy
Treasurer confirms Australia on track for recession
Listen to
What the heck is with robots and tech - ETFs explained
More podcasts
Find super’s sweet spot
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.