Economic Collapse

Worldwide Economic Collapse and Distress of Nations: Australia coronavirus stimulus package: $750 cash for welfare recipients in $17.6bn plan. Australian government stimulus package to include cash payments to 6.5m Australians, as well as support for small businesses, as it seeks to ward off a recession.

Worldwide Economic Collapse and Distress of Nations: Australia coronavirus stimulus package: $750 cash for welfare recipients in $17.6bn plan. Australian government stimulus package to include cash payments to 6.5m Australians, as well as support for small businesses, as it seeks to ward off a recession.

Casuals still have to wait at least five days for sick payment to kick in

Asked if Centrelink would be able to handle the loan, Scott Morrison says while the government is waiving the waiting period (currently set at least a week) there is the “normal processing time”, which Anne Ruston has told him is “about five days”.

“What I am saying is it about a five-day period for processing, you put your application in and it takes about five days. Now previously there was a waiting period you would have to wait out and then make that application. We will be waiving that waiting period, and that will be provided for Newstart as well.

“… This is a good element about our system, there are many other countries in the world who don’t have this and I can understand the concern that casual employees would have had. I am encouraged by the lead of the early response by large businesses and I would hope that other large businesses would follow the lead of Telstra, and I expect that they would from some of the messages that I have.

“The government will be doing its bit by supporting that program and waiving the waiting periods to provide that support at the Newstart rate.”

Updated at 8.37pm EDT

Scott Morrison asks for a show of hands from the media of who saw the coronavirus happen and says that is one of the reasons it can’t be embarrassed it called the budget “back in black” when clearly it is not (and hasn’t been).

And yet, Christian Porter seemed to suggest that casuals should have been prepared for an unexpected two weeks off, because they receive a higher hourly wage in exchange for giving up entitlements such as sickness leave, when asked on Monday, but it is amazing how quickly things can change.

Updated at 8.36pm EDT

For anyone who may need the currently named sickness allowance, you will find the DSS information here

The Australian food and grocery council (who knew such a thing existed?!) is quick off the mark to say thank-you to the government for the stimulus package:

Our sector plays an integral role in Australia’s economic and social fabric, with an annual turnover of $122.1 billion,” said AFGC Acting CEO, Dr Geoffrey Annison in a statement

‘The sector employs more than 273,300 Australians, representing almost 40 per cent of total manufacturing employment, and it is also the lifeblood of many regional and rural communities, where 39.3 per cent of these jobs are based.

Updated at 8.29pm EDT

There will be no changes to the sickness allowance (which will roll into the JobSeeker payment on March 20) asset test. The only thing that will change is the waiting period.

There have been issues with it in the past:

Stimulus at a glance

The package is worth $18bn in this financial year and $22bn over the 15 months it will run

The instant asset threshold is increased from $30,000 to $150,000

The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses.

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

Households which receive a government payment will receive $750 from March 31

$1bn “Coronavirus fund”

Updated at 8.25pm EDT

4. Assistance for severely affected regions

This measure provides $1 billion to support regions most significantly affected by the Coronavirus outbreak.

Support for coronavirus-affected regions and communities

The government has set aside $1 billion to support those regions and communities that have been disproportionately affected by the economic impacts of the coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.

This will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and the waiver of entry fees for commonwealth national parks.

It will also include additional assistance to help businesses identify alternative export markets or supply chains.

Targeted measures will also be developed to further promote domestic tourism. The Australian Tax Office (ATO) is also providing administrative relief for some tax obligations for people affected by the coronavirus outbreak, on a case-by-case basis.

The ATO will set up a temporary shopfront in Cairns within the next few weeks with dedicated staff specialising in assisting small business.

In addition, it will consider ways to enhance its presence in other significantly affected regions, making it easier for people to apply for relief.

The ATO is considering further temporary shopfronts and face-to-face options.

Updated at 8.30pm EDT

3. Stimulus payments to households to support growth

This measure will assist around 6.5 million lower income Australians, which will support confidence and domestic demand in the economy.

The government will provide a one-off $750 payment to social security, veteran and other income support recipients and eligible concession card holders.

Around half of those that will benefit are pensioners.

There will be one payment per eligible recipient. For example, if a person qualifies for the one-off payment in multiple ways, they will only receive one payment.

The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and veteran payments.

Updated at 8.30pm EDT

2. Cash flow assistance for businesses

This assistance will support businesses to manage cash flow challenges resulting from the economic impacts of the coronavirus and help businesses retain their employees. These two measures are designed to support employing small and medium enterprises and to improve business confidence.

The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses.

The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff.

The payment will be tax free.

This measure will benefit around 690,000 businesses employing around 7.8 million people.

Supporting apprentices and trainees

The government is supporting small business to retain their 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.

This measure will support up to 70,000 small businesses, employing around 117,000 apprentices.

1. Business investment

Delivering support for business investment the government is backing businesses to invest to help the economy withstand and recover from the economic impact of the coronavirus.

The two business investment measures in this package are designed to assist Australian businesses and economic growth in the short term, and encourage a stronger economic recovery following the coronavirus outbreak.

From today, the government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. In 2017-18 there were more than 360,000 businesses that benefited from the current instant asset write-off, claiming deductions to the value of over $4 billion.

The government is introducing a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

These two measures will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees.

Categories: Economic Collapse

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