Counteracting the economic impact of Covid-19: Second Government Support Package Announced
1. Victorian Government’s $1.7 billion economic survival and jobs package.
- the Government will provide full payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million
- The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021
- Commercial tenants in government buildings can apply for rent relief
- 2020 land tax payments will be deferred for eligible small businesses
- the Government will establish a $500 million Working for Victoria Fund to help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food
- The Government will also facilitate job matching to help Victorians find short-term or casual roles
2. Both the Federal and Victorian State Governments have advised the 2020-21 Budgets will be deferred.
3. The Federal Government announced its second stimulus package.
- Up to $100,000 to eligible small and medium sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000. These payments will help businesses and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.
- The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
- Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital. SMEs with a turnover of up to $50 million will be eligible to receive these loans. The Government will provide eligible lenders with a guarantee for loans with specific terms.
- The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
- The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21.
4. Stage 1 Shutdown on non-essential activity across Victoria now in force.
- pubs, clubs, nightclubs, Crown Casino, and licensed venues in hotels and pubs
- gyms, indoor sporting venues, places of worship, cinemas and entertainment venues.
Restaurants and cafes will only be allowed to provide home delivery or takeaway services.
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