This assistance will assist businesses to manage cashflow challenges and help businesses retain their employees. These two measures are designed to support employing small and medium sized businesses and to improve business confidence. The Boosting Cash Flow for Employers measure also supports the activities of not-for-profits (including charities) at a time where they are facing
increased demand for services.
The Government is backing businesses to invest to help the economy withstand and recover from the economic impact of Coronavirus. The two business investment measures in this package are designed to assist Australian businesses and economic growth in the short-term, and encourage a stronger economic recovery following the Coronavirus outbreak.
These measures will support over 3.5 million businesses (over 99 per cent of businesses) with aggregated annual turnover of less than $500 million
employing more than 9.7 million employees.
The Government is helping retirees to manage the impact of volatility in
financial markets on their retirement savings by temporarily reducing
superannuation minimum drawdown requirements. The Government is also
reducing social security deeming rates in recognition of the impact of the low
interest rates on savings.
Temporary relief for financially distressed businesses
The economic impacts of the Coronavirus and health measures to prevent its
spread could see many otherwise profitable and viable businesses temporarily
face financial distress. It is important that these businesses have a safety net to
make sure that when the crisis has passed they can resume normal business
operations. One element of that safety net is to lessen the threat of actions
that could unnecessarily push them into insolvency and force the winding up of
The Government, Reserve Bank of Australia and the Australian Prudential
Regulation Authority have taken coordinated action to support the flow of
credit in the Australian economy, in particular for small and medium
enterprises (SMEs). Timely access to credit is vital to help SMEs get through the
impact of the Coronavirus.