Changes to Employee Eligibility for Jobkeeper 1.0 There has been a recent change to the classification of eligible employees for Jobkeeper 1.0. Some businesses will now have more eligible employees: If a business has a full-time or part-time employee that commenced after 1 March 2020 up to 1 July 2020 then they will now be eligible for the remainder of Jobkeeper 1.0 that... Read more
In this edition of Oliver’s Insights, Shane Oliver looks at the projections for the coming budget deficit and the impact on Australia’s net public debt due to coronavirus, and whether it is affordable. Key Points Australia’s federal budget deficit is expected to peak at around $200bn in 2020-21, or around 10% of GDP which will be the highest since the end... Read more
In a time when blanket coverage of coronavirus and its impact on the economy can lead to a lot of confusion, Shane Oliver this week discusses the good news, the bad news, and what it all means for investors. Key Points After a strong rally, in the short-term shares are vulnerable to bleak economic and earnings news. However, positive news... Read more
Applications are open now, until 1 June 2020 for the NSW Government Grant to assist small businesses affected by COVID-19. Eligibility To be eligible, NSW-based businesses will need to: have between 1-19 employees as at 1 March 2020 have a turnover of more than $75,000 a payroll below the NSW Government 2019-20 payroll tax threshold of $900,000 have an Australian... Read more
In Shane Oliver’s latest article he discusses quantitative easing, the role it is playing in the coronavirus economic rescue globally, and the implications for investors. Key Points Central bank support to ensure the flow of money and credit through economies is an essential part of the global and Australian coronavirus economic rescue. This has increasingly involved quantitative easing which entails... Read more
If your business has been significantly impacted by the coronavirus shutdowns you will be able to access a wages subsidy to continue paying your employees and to set businesses up for a speedy recovery after the crisis has been resolved. Businesses and NFP’s with Employees To be eligible, employers must meet the following criteria: Turnover is less than $1 billion... Read more
More from Shane Oliver this week on the coronavirus pandemic and its impact on the way we live and as a result on investment markets. In this article Shane addresses some questions, such as: why does a big part of the economy have to go into “hibernation”? how long might it be for? how big will the hit to the economy... Read more
Banks have outlined how they are supporting those affected by the coronavirus pandemic and its economic impacts. All members of the Australian Banking Association (ABA) will suspend principal and interest loan repayments for distressed small-business customers for six months. All four major banks (CBA, NAB, ANZ and Westpac) will also extend this to distressed home loan customers, enabling them to... Read more
Many people in the coming months will need to be in self-isolation, quarantine or potentially receiving treatment. This separation will make it harder for practical matters to be managed. There will be times that may need people to be formally authorised to make decisions for you. Having a power of attorney in place is the best way to be prepared... Read more
Two measures announced in the Government’s stimulus package are changes related to superannuation. Superannuation Pension Streams Reduced The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products. This is of benefit to retirees holding these products, by reducing the need to sell investment assets to fund minimum drawdown requirements. The minimum annual amount that you’re... Read more