A one-off cash payment of $750 will be available to more than six million welfare recipients as of March 31, with the biggest beneficiaries to be pensioners, but the payment also supporting carers, veterans, families, young people and job seekers. The total cost will be $4.8 billion, with the Treasurer suggesting those receiving the payment spend it in ways that will “encourage economic activity.”
Today’s package detailed in Canberra also includes the option for casual workers who contract Covid-19 — along with those that need to isolate themselves — to be eligible to the Newstart welfare payment while off work.
Meanwhile, small businesses that employ people will be able to access cash payments of between $2000 and $25,000 to help with paying wages or extra staff, at a total cost of $6.7 billion. The package aims to support businesses dealing with cashflow challenges and will be known as The Boosting Cash Flow for Employers measure.
Employers who are eligible will also be able to apply for a wage subsidy of 50 per cent of an apprentice or trainee’s wage for up to nine months — running from January to September 2020.
Businesses with turnovers of up to $500 million will be able to access asset write-offs of up to $150,000 — which is a lift from the current maximum of $30,000, currently limited to those businesses with turnovers of up to $50 million.
“This plan is about keeping Australians in jobs,” Morrison said announcing the package this morning. “This package is about keeping business in business.”
Meanwhile, $1 billion has also been provided to support regions that have been disproportionately affected by the economic impacts of the pandemic, such as tourism and agriculture industries.
Today’s spending announcement comes following $2.4 billion promised on Wednesday to help fund 100 pop-up fever clinics, along with new measures for doctors to bulk bill when offering advice online.
Eleven billion of the stimulus package will be spent by the end of this financial year, with the remainder injected before July 2021.
More to come