Federal budget 2020: The right way to counter pandemic

The Morrison government’s big-spending coronavirus budget has been widely supported by big business.

The Morrison government’s big-spending coronavirus budget has been widely supported by big business, which has praised the effort to restart the nation’s economy.

JB Hi-Fi chief executive Richard Murray said the budget would help the nation face the challenges of the economy.

“It provides support to businesses looking to re-establish themselves and creates employment opportunities for many Australians,” Mr Murray told The Australian on Tuesday night.

“Australians are doing it tough and this budget will kick-start the economic recovery to underpin the nation’s economic growth.”

In a big-spending budget the government announced a wide-ranging package of stimulus measures aimed at encouraging business confidence with a plan it says will “create jobs, rebuild our economy and secure Australia’s future”.

Among the measures, businesses with turnover up to $5bn will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed.

For next two years, companies with turnover up to $5bn will be able to offset losses against previous profits on which tax has been paid, to generate a refund.

Wesfarmers chief executive Rob Scott said the budget “will give a boost to confidence at a critical time”.

“It will give businesses the confidence to invest and to create more jobs while easing the burden on households and giving families more confidence to invest in their future. This will accelerate the economic recovery and puts Australia on a stronger path to prosperity.”

Infrastructure players were also bullish. The Australian Construction Association welcomed the additional investment in new infrastructure but, noting the “use it or lose it” condition, called for a more collaborative approach to get “shovel ready” projects underway.