Federal Government to unveil coronavirus stimulus package
Queensland small and medium businesses will get cash payments of up to $100,000 in a multibillion-dollar coronavirus survival package being unveiled by the Federal Government.
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A MULTIBILLION-dollar survival package to cushion the economic blow from the coronavirus will see cash payments of up to $100,000 flow to small and medium businesses struggling to pay their wage bills.
Today, the Federal Government will unveil the second of at least three assistance packages which will also see taxpayers guarantee loans with a six-month repayment holidays for eligible small and medium businesses.
Prime Minister Scott Morrison said the coronavirus was already having a devastating impact on Australian businesses and warned it would “get worse before it gets better”.
“We want to help businesses keep going as best they can or to pause instead of falling apart,” he said.
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The total value of the Government’s stimulus package is $189 billion — almost 10 per cent of Australia’s GDP — which also includes $17.6bn announced for the first stage of measures and $105 billion in credit pumped into banks and lenders by the government and the Reserve Bank.
The latest cash handout plan is a supercharged version of payments announced earlier this month, for businesses with a turnover below $50 million. Under the plan almost 700,000 small and medium businesses nationwide will now be able to keep 100 per of the tax they withhold from their employees wages, up to $100,000 — four times the current cap.
The payments will start flowing to small and medium sized business that employ about
2.5 million people in NSW from April 21.
The second measure will see the Government and banks offer a repayment freeze to small and medium businesses that take out new loans in the six months from April 1.
Taxpayers will play guarantor for loans of up to $250,000 for businesses that want to use the money to expand, buy new equipment or cover bills.
Commonwealth Bank chief executive, Matt Comyn backed the package and encouraged banks and governments to work together to “help businesses survive and keep people in jobs”.
“We can achieve an enormous amount quickly if government and business work hand-in-hand, quickly, with complete focus on getting things done to slow down the spread and minimise the impact of the virus,” Mr Comyn said.
The Sunday Mail understands more stimulus measures will be announced today including an expansion of the welfare safety net, relief for retirees living off their super and help for families a sole traders.
A scaled-back parliament will be asked to pass the latest stimulus package as well as previously announced measures for businesses, welfare recipients and tourism operators when it resumes on Monday.
“There is a lot of pain coming but we’re going to cushion the blow as best we can,” Mr Morrison said.
“In the event that someone does regrettably lose their job because of the coronavirus it’s very important that business give their workers the confidence that this is just temporary. And that when they reopen their doors and get back to business that they will want to get them back on the payroll as soon as possible.”
“The next few months are going to be a difficult journey but we all have a role to play to adapt to the changes we’re facing”
As authorities closed beaches on Saturday, the Government has sought advice on locking down suburbs or towns with high levels of coronavirus cases, potentially forcing people to stay in their homes and businesses to shut their doors. Health officials will update the national cabinet with advice on Tuesday and recommend how many local cases would trigger total lockdowns.
“Where there are more specific outbreaks, there will be more advanced measures that would need to be put in place,” Mr Morrison said on Friday.
On the weekend hundreds of people defied the Government’s “social distancing” rules flocking to pubs and beaches across the country. Health Minister Greg Hunt said it was “unacceptable” and the Federal Government would step in and enforce the ban of 500-people at outdoors events and 100 people indoors.
“If you are breaking those rules you are putting not just yourself but you are putting other Australians at risk,” Mr Hunt said.
“Our message to the local council is, this is all of our responsibility.”
“There are local options that are available and if local authorities are not doing that, we will not hesitate, either through the states or through the commonwealth to make sure these provisions are enforced.”
Originally published as Federal Government to unveil coronavirus stimulus package