Government Stimulus Packages for Businesses with or in need of Finance Credit

Author: techadmin | September 28, 2021

Over the weekend, the government announced the second of their Economic Stimulus packages it will be rolling out in order to provide some relief for individuals and businesses who have come under financial hardship due to the Covid-19 outbreak. Below you will find a simple break down some of the new changes in regards to finance & credit.

Support for immediate cash flow needs for SME’s

The government has agreed that it will provide a guarantee of 50% on unsecured loans up to $250,000 for eligible small and medium business entities. This may make it easier for SME’s to gain finance, but loans will still be subject to lenders assessment for approval.

For more information, you can access the full fact sheet by clicking the link below:

Supporting the Flow of Credit – Fact Sheet

Quick and efficient access to credit for small business

The government is proposing to relax the laws surrounding responsible lending that credit providers are usually adhere to. This means that the process of applying and being approved for finance should be faster & easier for small businesses.

For more information, you can access the full fact sheet by clicking the link below:

Supporting the Flow of Credit – Fact Sheet

Reserve bank of Australia – supporting the flow and reducing the cost of credit

The Reserve Bank of Australia (RBA) has decreased the cost for banks to extend credit to its customers and has further reduced interest rates to 0.25%. This encourages banks to be able to extend credit to its customers and lowers the cost for businesses in interest.

For more information, you can access the full fact sheet by clicking the link below:

Supporting the Flow of Credit – Fact Sheet

Support for Retirees & those receiving the Aged Pension

Superannuation minimum drawdown requirements for account-based pensions and similar products will be temporarily halved for both the current financial year and next financial year (2020-2021).  This means you can keep more of your money in superannuation should you not require it now. This will potentially allow your super time to regain recent losses.

Additionally, upper and lower social security deeming rates are also to be lowered meaning it will be easier to access the government aged pension.

We recommend you speak with your financial planner about this one.

See the full list of reduced rates, by clicking on the link below:

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