Welcome to the March 2020 Second Special Report - Coronavirus/COVID-19.
Like everyone else we are taking the COVID-19 virus matter very seriously, but we are open for business.
Our office is manned and all contact numbers are operational. Most staff will be working remotely, however we have excellent technology that allows for call transfer, audio/visual remote working amongst ourselves and with clients, and we anticipate most meetings now will be virtual meetings. We have the technology through Microsoft Teams and Zoom to manage this. We are here and available to support you in what are becoming increasingly challenging times.
Now to the most recent Government announced stimulus package.
Behind the high level summary, this special report will take you deeper into the detail of the further announcements regarding the recent Government stimulus measures, by clicking on the orange headers.
- Early release of superannuation – individuals in financial distress able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax-free and will not affect Centrelink or Veterans' Affairs payments.
- Temporary reduction in minimum superannuation draw down rates – superannuation minimum drawdown requirements for account based pensions and similar products reduced by 50% in 2019-20 and 2020-21.
- Deeming rates reduced – from 1 May, superannuation deeming rates reduced further to a lower rate of 0.25% and upper rate of 2.25%.
- Supplements increased, access extended and eased – for 6 months from 27 April 2020:
- A temporary coronavirus supplement of $550 will be paid to existing income support recipients (people will receive their normal payment plus $550 each fortnight for 6 months).
- A second one-off stimulus payment of $750 will be paid automatically from 13 June 2020 to certain income support recipients (in addition to the payment made from 31 March 2020).
- Eligibility for access to income support eased to include sole traders and the self-employed, and to those caring for someone infected or in isolation.
- Waiting periods and assets tests temporarily waived.
- Bankruptcy safety net – temporary 6 month increase to the threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor from $5,000 to $20,000.
The Government has flagged that additional stimulus packages will be required.
We should also note that State Governments are adding their financial muscle behind the support to their communities. Especially noteworthy are the payroll tax changes.
For NSW - click here
For ACT - click here
For VIC - click here
For QLD - click here
For WA - click here
For TAS - click here
There is also a developing push for rent relief by landlords so we expect more announcements on that front in due course.
As usual, please do not hesitate to call us on (02) 9891 6100 should you wish to discuss how any of the points raised in the report specifically affect you, or click here to send us an email.
Martin Roughley, Director
Spry Roughley Services Pty Limited
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