Economic and Fiscal Update
The Government released its economic and fiscal update on 23 July 2020
The economic statement did not contain any new tax policy, but it did contain some new announcements and reiterated some of the previous announcements. Some of the key highlights were:
- JobKeeper No 2 – An extension of the JobKeeper program which has been revised and extended for 6 months from September 2020 through to 28 March 2021
- JobSeeker Coronavirus supplement to be reduced and extended to 31 December 2020
- Extension of SME Guarantee Scheme
- Access to early release of superannuation extended to 31 December 2020
- JobTrainer Fund
- Other Tax Measures – including:
- Instant Asset Write Off
- Temporary reduced superannuation minimum pension draw downs
The JobKeeper Payment is being extended for an additional 6 months, from 28 September 2020 until 28 March 2021. There will be changes to the program including a reduction in the rate, a new 2-tiered payment system and a change to the turnover test being and actual rather than projected test.
The extension of the program is required to provide further support to those businesses that continue to be significantly affected by the economic downturn.
JobSeeker Coronavirus Supplement
The JobSeeker Coronavirus supplement has been extended until to 31 December 2020, but it will reduce from $550 to $250 per fortnight after September.
Extension of SME Guarantee Scheme
The Government is extending the COVID-19 SME Guarantee Scheme to loans written until 30 June 2021 and making targeted amendments to ensure that the loans available suit the evolving needs of SMEs.
Access to Early Release of Superannuation
Individuals who are still financially impacted by the COVID-19 pandemic will also have more time to apply for the early release of up to $10,000 of superannuation, with the application period extended from 24 September 2020 to 31 December 2020.
The JobTrainer Fund will provide additional low and no fee training places for job seekers and school leavers, and extends the Supporting Apprentices and Trainees wage subsidy for a further 6 months to 31 March 2021 and expands it to medium-sized businesses from 1 July 2020.
Instant Asset Write Off
The instant asset write-off to allow businesses with turnovers of less than $500M to immediately write off asserts costing less than $1250,000 each has been extended for an additional 6 months to 31 December 2020.
Reduced Superannuation minimum pension drawdowns
A 50% reduction in the minimum pension’s drawdown requirement for account based pensions has been extended through to the 2020/21 year – Contact our Superannuation Special Daniel Shaw firstname.lastname@example.org for more information on this.
For full details of the update please refer to the link to the Federal Governments overview here.
If you require further information on the above and how it impacts you, please do not hesitate to contact your DFK Benjamin King Money representative at our office.