What does the government’s latest coronavirus stimulus package mean for you?
The coronavirus outbreak has evolved from shadowy threat to full-blown disaster, and governments and central banks around the world are scrambling to contain the fallout.
Yesterday, Prime Minister Scott Morrison announced a $66 billion stimulus package to protect those Australians “who will be feeling the first blows of the economic impact of the coronavirus.”
This latest round of stimulus brings the total amount the government has injected into the economy over the last month to $189 billion - close to 10% of Australian GDP - with more expected to arrive soon. Here are a few of the benefits.
Supplement for welfare recipients
Individuals who apply for or are already receiving income support like the Jobseeker Payment will be able to access a coronavirus supplement of $550 per fortnight over the next 6 months.
This will complement any existing payments, and will hopefully ease some of the financial strain lower-income Australians might be facing as a result of the coronavirus outbreak.
Two separate payments of $750 will also be made to social security, veteran and other income support recipients and eligible concession card holders to help support households and prop up domestic demand.
Early release of superannuation
From April, those affected by the current crisis will be able to gain early access to their superannuation. Withdrawals will be capped at $10,000 for this financial year, with a further $10,000 available for withdrawal in 2020-21.
Individuals will not be required to pay tax on these withdrawals, and they will not affect Centrelink or Veterans’ Affairs payments.
According to Treasurer Josh Frydenberg, this will put up to $27 billion worth of superannuation back in Australians’ hands, while only subtracting less than 1% from the $3 trillion currently in the superannuation system.
Retirees will also be happy to hear the government will be reducing minimum drawdown requirements from 4% to 2%, giving older Australians with account-based pensions or similar products “more discretion over the management of their assets.”
Direct support for businesses
The government will also introduce a number of measures to help keep Australian businesses humming, including cash payments of between $20,000 and $100,000 to small and medium-sized enterprises.
Up to 30,000 not-for-profit organisations will also be eligible for these payments, so long as they have an annual turnover of less than $50 million.
“This will be a lifeline for hundreds of employers like the local hairdresser, the local cafe, the local mechanic, whose income has been significantly reduced over this difficult period,” said Mr Frydenberg.
“This is the single largest measure in the second package, and together with the first initiative in the first package for small businesses is worth $31.9 billion in total.”
The government has also pledged to guarantee 50% on unsecured loans of up to $250,000 for 3 years to ensure the continued flow of credit to Australian SMEs. This will commence in April 2020, and will apply to businesses with a turnover with less than $50 million per year.
For more information on the kind of assistance currently available to households, read about what your state is doing to help during the coronavirus outbreak.
Business loan comparisons on Mozo - last updated February 27, 2021
Line of Credit
Zip Business Loans online application process can be completed in as little as five minutes, and once approved you can access the funds within 24 hours. A line of credit up to $500k that converts into a loan when you draw down.
Interest Rate
Upfront Fee
Funding speed
On Application2% to 3%Instantly, once approvedLine of Credit
Zip Business Loans online application process can be completed in as little as five minutes, and once approved you can access the funds within 24 hours. A line of credit up to $500k that converts into a loan when you draw down.
- Interest Rate
- On Application
- Upfront Fee
- 2% to 3%
- Ongoing Fees
- $0.00
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- 0
- Other fees
- Various late payment fees may apply.
- Loan type
- Line of Credit
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 6 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 18 months
- Minimum annual turnover
- $200,000
- Application speed
- 10 minutes
- Approval speed
- 24-48 hours
- Funding speed
- Instantly, once approved
- Extra repayments allowed
- Yes
- Redraw allowed
- Yes
- Other benefits
- -
- Other restrictions
- -
Fully Drawn Loan
Heritage Banks Fully Drawn Business Loan is a good option for most business needs such as purchasing a property, buying a business or longer term working capital requirements.
Interest Rate
Upfront Fee
Funding speed
2.95% p.a. variableNegotiableVariesFully Drawn Loan
Heritage Banks Fully Drawn Business Loan is a good option for most business needs such as purchasing a property, buying a business or longer term working capital requirements.
- Interest Rate
- 2.95% p.a. variable
- Upfront Fee
- Negotiable
- Ongoing Fees
- $20 monthly
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $20,000
- Maximum loan amount
- -
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- interest only, principal and interest
- Minimum trading period
- Varies
- Minimum annual turnover
- Varies
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- yes
- Redraw allowed
- yes - with $20 fee
- Other benefits
- -
- Other restrictions
- Residential Security Interest Rate. A break fee applies to fixed term loans if broken early.
Read our Mozo Review to learn more about the Fully Drawn Loan
Invoice Finance
Get your customer invoices paid early, without waiting up to 90 days for payment. Apply online in 10 minutes and select your local or overseas invoices to fund. Flexible funding with no lock-in contract.
Interest Rate
Upfront Fee
Funding speed
On Application$0.0024 hoursInvoice Finance
Get your customer invoices paid early, without waiting up to 90 days for payment. Apply online in 10 minutes and select your local or overseas invoices to fund. Flexible funding with no lock-in contract.
- Interest Rate
- On Application
- Upfront Fee
- $0.00
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- On Application
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $100,000,000
- Minimum loan term
- 0 years
- Maximum loan term
- 4 months
- Repayment frequency
- -
- Repayment types
- -
- Minimum trading period
- 0 years
- Minimum annual turnover
- $0
- Application speed
- 10 Minutes
- Approval speed
- 24 hours
- Funding speed
- 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- No lock in contract, flexible funding drawdowns, international invoices, trade finance
- Other restrictions
- -
Business Loan
Business loans available from $5K to $300K and funding possible in 24 hours. Prospa uses risk-based pricing to determine your interest rate, which can range from 14.95% p.a. to 24.95% p.a. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Interest Rate
Upfront Fee
Funding speed
Interest rates vary based on risk. Rates range from 14.95% to 24.95% p.a.3%from 24 hoursBusiness Loan
Business loans available from $5K to $300K and funding possible in 24 hours. Prospa uses risk-based pricing to determine your interest rate, which can range from 14.95% p.a. to 24.95% p.a. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
- Interest Rate
- Interest rates vary based on risk. Rates range from 14.95% to 24.95% p.a.
- Upfront Fee
- 3%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $300,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $25,000
- Application speed
- 10 Minutes
- Approval speed
- Same-day approval
- Funding speed
- from 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Line of Credit
Heritage Banks Business Line of Credit is a flexible form of finance, allowing you to decide when to make principal reductions, plus the ability to re-use these funds at any time during the term of the facility.
Interest Rate
Upfront Fee
Funding speed
3.75% p.a. variableNegotiableVariesLine of Credit
Heritage Banks Business Line of Credit is a flexible form of finance, allowing you to decide when to make principal reductions, plus the ability to re-use these funds at any time during the term of the facility.
- Interest Rate
- 3.75% p.a. variable
- Upfront Fee
- Negotiable
- Ongoing Fees
- $20 monthly
- Late payment fee
- $0.00
- Transaction fee
- First five transactions free, then $2.00 per transaction.
- Early repayment penalty
- n/a
- Other fees
- -
- Loan type
- Line of credit
- Security type
- Secured
- Minimum loan amount
- $50,000
- Maximum loan amount
- $500,000
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- Monthly
- Repayment types
- n/a
- Minimum trading period
- Varies
- Minimum annual turnover
- Varies
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- n/a
- Redraw allowed
- n/a
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Line of Credit
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