Stimulus worth a total of $66 billion dollars will put money in the pockets of small and medium sized businesses to try to encourage them not to sack staff.
With the coronavirus pandemic smashing the economy and a global recession seen as almost inevitable, the federal government has announced this second stimulus package after an initial $17.6 billion dollar offering more than a week ago.
Businesses and not-for-profits with a turnover of less than $50 million a year will receive tax free, cash payments starting at a minimum of $20 thousand and up to as much as $100 thousand dollars.
These payments will be delivered by the Tax Office as a credit on activity statements from late April.
There's to be a temporary doubling of the Jobseeker Payment that used to be known as Newstart.
It will be available to sole traders and casual workers provided they meet income tests.
The government will waive asset tests and waiting periods to access the Jobseeker Payment.
Treasurer Josh Frydenberg says the coronavirus supplement comes in the form of a $550 dollar additional payment each fortnight.
"This means anyone eligible for the maximum job seeker payment will now receive more than a 11 hundred dollars a fortnight effectively doubling the job seeker allowance."
There is going to be a second $750 dollar payment to Australians on income support that are not eligible for the new coronavirus supplement.
This includes aged pensioners, people getting the carers' allowance, family tax benefits and the Commonwealth Seniors Health Card.
The first $750 payment announced in the first stimulus package will be delivered to about 5 million people on March 31 with the second payment coming on July 13.
People including sole traders and casual workers, whose income or hours have worked dropped by at least 20 per cent, are being allowed early access to their superannuation.
They will be able to make tax free withdrawals of up to $10 thousand this financial year and another 10 thousand next financial year. The Treasurer says,"These withdrawals will be tax free and available to those who are eligible for the coronavirus supplement as well as sole traders who have seen their hours worked or income fall by 20 per cent or more as a result of the coronavirus. So, if you're a sole trader or you're a casual, and you've seen your income or your hours worked fall by 20 per cent or more as a result of the coronavirus, you will be able to get early access to your superannuation."
The government will also guarantee unsecured loans of up to $250 000 for three years for businesses with a turnover of less than 50 million dollars.
No repayments will be required for the first 6 months.
Prime Minister Scott Morrison, who is imploring people to comply with the social distancing measures and cancel all non-essential travel, says the country faces many hardships and sacrifices in the months ahead.
He says while they might break our hearts on occasion, they must not break our spirit and resolve.
He says more assistance will be made available as the pandemic evolves.
"There will be more packages, there will be more support. There will be more issues that even now haven't presented themselves or even couldn't be conceived at this point with what we may face over the next six months and we will be working night and day to ensure that we bring forward the measures that Australia needs to get them on this bridge to the recovery on the other side."
Labor's Treasury spokesman Jim Chalmers has told the ABC the relief measures need to be delivered as soon as possible. Mr Chalmer says,
"Some of this assistance won't flow until the middle of next month. Some of the payments for individuals, for pensioners won't flow for another week or so. So I think there is a lack of urgency here and one of the constructive roles that we do want to play in the opposition is to inject a sense of urgency where it's lacking or absent. If we are contemplating further measures to contain the outbreak then we need to be looking for ways to get this welcome relief into the hands of more workers, pensioners, families, businesses and circulating throughout the economy ASAP because we can't afford there to be more dithering and delay."
