As has been well reported, both the Federal and State governments have issued stimulus packages in response to the economic impact of the spread of the novel coronavirus disease (COVID-19).

The Federal Government’s stimulus package has now passed both houses of Parliament, with some amendments. The NSW Government’s stimulus package has also passed both houses of the NSW Parliament.

The ATO has also outlined administrative measures to assist businesses.

Federal Government Stimulus Measures

The Coronavirus Economic Response Package Omnibus Bill 2020 (Cth) (Federal Bill), which is comprised of 8 separate Bills, was passed by both houses of Parliament on 23 March 2020. The Federal Bill incorporates the measures contained in the 2 stimulus packages announced by the Federal Government on 12 March 2020 (a $17.6 billion fiscal package) and 21 March 2020 (a $66 billion fiscal package).

The measures include:

1. an enhanced instant asset write-off. Details of this measure are outlined in the link below;

2. accelerated depreciation for assets not deducted under the instant asset write off;

3. a cash boost payment to small and medium sized businesses with an aggregated turnover of less than $50 million and that employ staff. The details of this measure are outlined in the link below;

4. wage assistance to help small businesses keep their apprentices and trainees;

5. an economic support payment of $750 to Social Security and Veterans’ income support recipients, Farm Household Allowance recipients, Family Tax Benefit recipients and holders of a Pensioner Concession Card, Commonwealth Seniors Health Card or Commonwealth Gold Card;

6. a second economic support payment of $750 to Social Security and Veterans’ income support recipients, Family Tax Benefit recipients and holders of a Pensioner Concession Card, Commonwealth Seniors Health Card or Commonwealth Gold Card;

7. short term changes to the Corporations Act and Bankruptcy Act to provide relief for persons unable to meet their obligations under that Act. The details of this measure are outlined in the link below;

8. enabling persons to obtain early release of their superannuation benefits and to reduce the minimum amount to be paid for account-based pensions. The details of this measure are outlined in the link below;

9. a scheme to grant guarantees to financial institutions in connection with loans made, or to be made, to SMEs. The details of this measure are outlined in the link below.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.

contact