The Second Stimulus Package: What You Need To Know

Support for workers and households

Casuals and Sole Traders

If you’ve found yourself affected by the economic downturn, you’ll be able to access a “coronavirus supplement” of $550 a fortnight for the next six months.

That’s on top of other benefits — so if you’re already receiving payments through Jobseeker (formerly known as Newstart), you can claim both.

Sole traders and casual workers who are currently making less than $1,075 a fortnight will be eligible to receive the full supplement.

Access to Super for Casuals and Sole Traders

Sole traders or casual workers who have had their income or hours reduced by 20 per cent or more as a result of coronavirus will also be able to access to up to $10,000 of their superannuation tax-free this financial year, and another $10,000 next financial year.

Payments to support households

If you’re not eligible to receive the coronavirus supplement, you could still be able to claim a $750 stimulus payment.

The payment will be made automatically from July 13 to about 5 million Australians, including those receiving the age pension, a carers allowance or family tax benefit and Commonwealth senior card holders.

That’s in addition to a separate $750 stimulus payment announced earlier this month.

Age Pension Changes

Deeming rates will be reduced by a further 0.25 percentage points to reflect the latest rate reductions by the RBA, which follows similar cuts made earlier this month.

This is important because deeming rates are used for the pension income assessment — and therefore affect how much someone will receive through their pension.

From the beginning of May, the lower deeming rate will be 0.25 per cent and the upper deeming rate will be 2.25 per cent.

To put things in perspective, when deeming rates were reduced by half a percentage point in the first stimulus package, National Seniors estimated age pensioners would receive on average an additional $219 per year.

According to the Government, the change will benefit around 900,000 income support recipients, including age pensioners, and is estimated to cost $876 million over the forward estimates period.

Superannuation Pension Changes

In addition, the minimum superannuation pension requirements will be reduced for 2 years, this will halve the minimum pension requirements. The applicable rates, before these changes, are age dependent, and start at 4% per annum for those under age 65 and up to 14% per annum for those above age 95.

Employers who want to keep staff

Not-for-profits and small businesses with a turnover under $50 million will receive a tax-free cash payment of up to $100,000 to help them retain staff and continue operating.

The Government expects 690,000 businesses employing 7.8 million people and 30,000 not-for-profits will be eligible for measures in the stimulus package.

It doesn’t mean extra pocket money if you’re an employee, but by linking the payments to staff wage tax withholdings, businesses will be given an incentive to hold on to more of their workers.

“Whether it is a coffee shop or mechanic or hairdresser… by providing at a minimum $20,000 and up to $100,000 for small businesses who employ people, [it] gives them a chance to get to the other side.”

Expect more to come…

An important thing to keep in mind is that this is the second suite of measures announced by the Government in just a matter of weeks.

The first, announced on March 12, also included one-off cash payments for welfare recipients, and changes to welfare payments for casual workers who contracted COVID-19 or had to isolate themselves.

In announcing Sunday’s package, Mr Morrison himself warned that it would not be his “last visit to these podiums”.

“There will be more issues that even now have not presented themselves or could not even be conceived at this point.”

So, if you’re doing it tough, expect more measures in the near future.

Written by

The author didnt add any Information to his profile yet