Who gets what from the $17.6 billion federal stimulus package? The federal package is front-loaded, meaning a burst of money comes at the start – $11 billion over the next three months. Here are the highlights:
- $750 one-off cash payment to welfare recipients will be received by 6.5 million Australians including those on the age pension, Family Tax Benefit, Youth Allowance, Newstart, Austudy, Disability Support, parenting and carer payments. Paid into our account from March 31, 2020. Budget Cost: $4.8 billion in 2019-20.
- Lower and higher deeming rates will be cut by half a percentage point, largely benefiting aged pensioners. Budget Cost: $600 million
- Investment incentives for businesses with turnover up to $500 million. The instant asset write-off threshold has been lifted to $150,000 temporarily and a 15-month investment incentive will give businesses a 50 per cent deduction on the cost of eligible assets. Budget Cost: $3.9 billion
- Up to 70,000 eligible employers are able to get a wage subsidy worth 50 per cent of apprentice or trainee wages paid from January 1, 2020 to September 30, up to $21,000 per person. Budget Cost: $1.3 billion
- For employers with turnover under $50 million, a tax-free payment of $2000 to $25,000 will be paid to about 690,000 small and medium businesses. Budget Cost: $6.7 billion
- For workers who fall sick or need to be isolated, Services Australia will offer a Major Personal Crisis exemption for 14 days for those who cannot meet current income-support obligations due to required isolation. This does not require a medical certificate unless a further extension is needed. Others may be covered under Youth Allowance, a Sickness Allowance or, after March 20, a JobSeeker Payment.
You are eligible for the $750 if you are one of the 6.5 million lower-income Australian residents receiving any kind of government benefit. It will be paid as a one-off, in addition to your regular payments, from March 31 onwards and covers social security, veterans, disability support, Newstart and Austudy recipients.
The NSW government has revealed a $2.3 billion package, including spending on health services and $1.6 billion in tax relief for small businesses. Fees and charges for small businesses such as bars, cafes and restaurants are being waived and $250 million will be spent to employ extra cleaners for places such as public transport and schools.
In Western Australia, there is a $607 million package, including one-off grants for businesses, and freezing the household cost for bills such as electricity, water, registration and public transport. Typically, these would rise with inflation.
Queensland was quick to introduce payroll tax relief to businesses and a tourism package of $27 million, and has introduced a $500 million loan facility to help affected businesses hold on to their staff, with up to $250,000 in payments.