What is Australia doing?
To stem the rapid spread of the virus at home, the Federal Government recently announced a raft of unprecedented restrictions on non-essential gatherings.
To cushion the economic impact of these restrictions, the Government has unveiled a major economic rescue package designed to inject $189 billion into the economy to protect Australian workers and businesses during the disruption.
What does the economic rescue package mean for business?For businesses, the package will deliver:
- A payment of up to $50,000 to small and medium sized businesses to cover the costs of employee wages and salaries.
- Temporary relief for financially distressed businesses, including a temporary increase to 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.
- An increase in the instant asset write-off from $30,000 to $150,000 and making more businesses eligible to use it. Plus, a 15-month investment incentive (through to 30 June 2021) to support short-term business investment and economic growth by accelerating depreciation deductions.
- A wage subsidy of 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020.
- A JobKeeper Payment of $1,500 per fortnight per employee for up to 6 months for eligible businesses struggling to retain their eligible employees due to the economic impacts of COVID-19.
- A $1 billion fund to support regions and businesses disproportionately affected by the COVID-19 outbreak, including industries such as tourism, agriculture and education.
- Access to income support payments and a Coronavirus supplement of $550 per fortnight for sole traders and the self-employed impacted by the economic downturn. For more information on financial assistance for Australian businesses, visit business.gov.au
State and Territory information grants and assistanceFind the latest coronavirus information for small business, grants and support in your state or territory.
What about your and your employees’ super?
The current market volatility brought about by the global coronavirus outbreak may be concerning you, particularly its potential impact on your super. We are indeed seeing an increase in the number of members contacting us to discuss their super and investment strategy.
Despite the current market volatility, for the majority of members, our answer to what you should do now in regards to your super investment is: likely to be nothing. We know that all market downturns, whatever their trigger, are temporary. It's also important to remember that the share market falls in the last few weeks follow many years of very strong returns, and the longer-term performance of Sunsuper's investment options remains solid.
You can read more and listen to our podcasts about the recent market volatility and what Sunsuper is doing on our website.
Early access to super for those in financial stress
If you are in financial stress as a result of COVID-19, you may be eligible to access up to $10,000 of your superannuation in 2019-20 and a further $10,000 in 2020-21.
You will need to apply directly to the ATO through the myGov website, and certify that you meet the eligibility criteria. After processing your application, the ATO will let you know and advise Sunsuper to make the payment to you.
While you can’t apply directly to Sunsuper, it is important we have your correct contact details. You can easily make sure we have your correct details by logging into Member Online.
For more information on eligibility criteria and case studies, read this fact sheet.