Here’s What The Second Stimulus Package Means For Sole Traders

Prime Minister Scott Morrison and Treasurer Josh Frydenberg have announced the Commonwealth Government’s second economic stimulus package in response to COVID-19.

After the first government stimulus package was announced March 12, it was promised that it would be the first of many. Well that promise has now been fulfilled, with the release of a second package this week. Any sole traders or casuals that were not benefited by the first business stimulus package can potentially breathe a sigh of relief, because this one is for you.

Here are the highlights, as stated by MYOB:

The Government is temporarily expanding eligibility for income support payments and establishing a time-limited ‘Coronavirus Supplement’.

The supplement is to be paid at a rate of $550 per fortnight to existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.

The Coronavirus Supplement will be paid for the next six months, costing the Government an estimated $14.1 billion.

It’s partnered by an increase of up to 5,000 staff for Services Australia, with the aim of supporting the delivery of the new measures.

“This means anyone eligible for the maximum Jobseeker payment will now receive more than $1,100 a fortnight, effectively doubling the Jobseeker allowance,” Treasurer Josh Frydenberg said.

Those suffering financial stress as a result of COVID-19 will also be allowed early access to superannuation in 2019-20 and 2020-21.

Eligible individuals will gain access to up to $10,000 through an online application in myGov before 1 July 2020, with a further $10,000 available after that date. Amounts released will be tax free, aimed at supporting those experiencing a loss of income as a result of the pandemic.

We want you to know that you are not alone in this, and by supporting each other, we can get through it. If you have any advice for fellow business owners, get in touch with us on editorial@spaandclinic.com.au

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