Coronavirus Gold Coast: $66.4B stimulus funding for businesses as recession fears grow

Further stimulus packages are set to be introduced in a desperate bid to stave off a coronavirus recession as hundreds of Gold Coast businesses face the wall.

FURTHER stimulus packages are set to be introduced in a desperate bid to stave off a coronavirus recession as hundreds of Gold Coast businesses face the wall.

The Federal Government yesterday announced the latest recovery package totalling $66.4 billion - it includes:

* Double the job seeker allowance with a COVID-19 supplement, with an extra $550 a fortnight for those who meet test, mean $1100 a fortnight for some;

* Waive waiting periods for job seeker allowance applications;

* From July 13 an extra $750 income support for pensioners, carers.

* Early access to $10k superannuation a year, for two years, tax-free for sole traders, casual workers.

* Flexibility for retirees to draw on superannuation.

* Small, medium businesses keep on staff to get between $20,000 and $100,000.

* Loans up to $250,000 for businesses with no repayments for 6 months.

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Prime Minister Scott Morrison said the economic plan – just 10 days after the first stimulus package – brought the government’s measures to $189 billion.

“That is unprecedented in this country,” he said.

“We will be supercharging our safety net.

“We’ll be supporting the most vulnerable to the impacts of the crisis, those who will feel those first blows.”

Mr Morrison warned the government’s two rescue packages – totalling about ten per cent of Australia’s GDP – would not be the last.

“There will be more issues that even now have not presented themselves or could not even be conceived at this point with what we may face over the next six months,” he said.

Australian Prime Minister Scott Morrison yesterday. (Photo by DAVID GRAY / AFP)

“We will be working night and day to ensure we bring forward the measures Australia needs to get them on this bridge to the recovery on the other side.”

The Commonwealth is also offering to guarantee unsecured loans of up to $250,000 for three years to encourage reluctant companies to borrow.

The government will also provide relief to directors of corporations for personal liability when the company is trading while insolvent.

Gold Coast business leaders yesterday welcomed the moves by the Morrison Government but admitted it would do little to stop many operators being forced to close.

Martin Hall. Picture: Richard Gosling

Gold Coast Combined Chamber of Commerce president Martin Hall said it was clear tough times were ahead for many of the city’s businesses.

“Allowing traders to continue with the support of the Federal Government is an opportunity for businesses to reflect on and use the time to train and reinvest along with the employees while keeping the doors open,” he said.

“But this is getting harder and harder due to the heightened restrictions on society which is a requirement.

“Soon we will be at the point where it will be nearly impossible for people to keep the doors open.”

The Gold Coast City Council will unveil its own financial relief package as early as today.

Council CEO Dale Dickson was last night putting the final touches to the proposal.

Council remains tight-lipped about its contents may potentially expected include some form of relief from rates, fees and charges.

Candidate for Division 10 Darren Taylor. Picture: Jerad Williams

Council candidate Darren Taylor, who is contesting Division 10 at Saturday’s election, said relief was critical for struggling businesses.

“A lot of our restaurants and traders are struggling with this, especially given we have to abide by social distancing,” he said.

“Council must come to the table with its assistance package and I believe this should include footpath dining fees being put on hold for a certain period of time, perhaps a year, as well as assistance with rates to keep businesses afloat through this.

“This is an unprecedented situation with a lot of people losing their jobs and sporting clubs struggling.

“Yes this will cost council a lot of money initially but this will be a small cost to keeping the community alive through this.”

It comes as the Chamber of Commerce and Industry Queensland (CCIQ) called on the State Government to increase its stimulus measures to match those of NSW and Victoria.

“Businesses need support now and taking away one of their major costs will be the relief they need to stabilise their jobs,” CCIQ policy general manager Amanda Rohan said.

“We have been calling for a six-month payroll tax waiver for businesses with wages up to $5 million) which will directly support over 9000 businesses, and there has been no response.

“We also want to see relief to businesses through utilities charges such as electricity, water and waste costs.”