Morrison Government Announces Stimulus Package

Prime Minister Scott Morrison has today announced a $17.6 billion economic stimulus package in response to the challenges posed by the spread of the Coronavirus.

The government said the package is focused on keeping Australians in jobs and helping small and medium sized businesses to stay in business. The package consists of four parts:

  • Supporting business investment
  • Providing cash flow assistance to help small and medium sized business to stay in business and keep their employees in jobs
  • Targeted support for the most severely affected sectors, regions and communities
  • Household stimulus payments that will benefit the wider economy

Support for small and medium-sized businesses

The measures aimed at providing cash flow assistance to business will be of particular interest to ES clients:

  • $6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. This measure will benefit around 690,000 businesses employing around 7.8 million people. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
  • $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

Read the Prime Minister’s media release here. You can also view a fact sheet on cash flow assistance for business here.

Support for employees

ES also understands that people who do not have any leave entitlements (eg sick leave) and are unable to attend work because they have been diagnosed with Coronavirus or who are in isolation may qualify for a sickness allowance from the government. More information can be found on the Department of Social Services website here.