Premier announces school fee refunds as part of second stimulus

UPDATED: The Premier has announced the second stage of his Government’s economic stimulus package, bringing the total amount of assistance to $1 billion. SEE WHAT’S IN THE PACKAGE

Premier Peter Gutwein during the daily coronavirus update. Picture: RICHARD JUPE

SMALL businesses will get their next power and water bills paid and parents will receive a refund of this year’s school levies as part of a second economic stimulus announced by Premier Peter Gutwein on Thursday.

Mr Gutwein announced hundreds of millions of dollars in new spending to take to $1 billion the amount his Government is spending to offset the economic effects of the coronavirus pandemic.

Utility prices will be frozen for 12 months and the Government is asking councils to do the same with rates.

“Just as we were the first state to shut our borders, we can lead the nation, beginning to return to normal again once we contain the virus,” he told Parliament.

“As always, our plan is in the best interests of Tasmania, and we will do what we think is best for Tasmania, not necessarily what is being done elsewhere.

“We will get through this, but to get there I ask all Tasmanians to heed this simple message: follow the rules and save lives.”

Mr Gutwein said the health service had a blank cheque to fight the pandemic and said he was expecting at least a $150 million bill.

As expected, the package was heavy with support for the state’s 38,000 small businesses and sole traders — as well as help for households and the community sector.

The Government has ordered that the next quarterly electricity and water bills for small businesses be waived and utility prices capped for 12 months for both business and residential customers.

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Payroll tax for hospitality businesses and small to medium enterprises in other sectors will be suspended for the 2019-20 financial year, at a cost of $75 million.

The amount available for interest-free business loans has been raised to $50 million and a $40 million small business grants program will be established.

Fees, charges and taxes — such as land tax — will be waived for businesses affected by the crisis for the 2020-21 financial year, at a cost of $20 million.

Local government will receive an additional $100 million in interest-free loans.

Heavy vehicle registrations and taxi licence fees will be waived for a year.

Public servants, whose jobs have been guaranteed, will be offered extra financial support if they are required to self-isolate and with working from home arrangements.

Creative and cultural industries will benefit from $1.5 million in new funding.

And there will be an additional $3 million for telephone mental health support and increased funding for financial counselling for small and micro businesses.

An emergency bill giving the Government sweeping new powers to deal with the crisis has passed through Parliament.

Included in its provisions is a halt to commercial and residential evictions and the Government says no customer will have their power cut off for non-payment.

The Tasmanian Chamber of Commerce and Industry welcomed the support package as “nation-leading”.

“These are unprecedented circumstances and they warrant an unprecedented response,”

TCCI CEO Michael Bailey said.

“At nearly $1 billion, the support the Tasmanian Government has provided is the biggest in the state’s history and it shows the Government is prepared to pull all of the levers available to them.

“The shockwave of the coronavirus is threatening to smash the Tasmanian economy. It’s already cost thousands of jobs this week alone and we can’t understate the need for the Tasmanian Government to step up, step in and provide assistance to the whole community as well as the business sector.”

Acting TasCOSS CEO Simone Zell said the package — in particular the measures for the community sector — showed strong leadership.

“We are confident that our industry’s compassion, experience, flexibility and skills will provide strong, effective support to Tasmanians and our communities as we get through this situation together,” she said.

“TasCOSS’s co-ordination role is focused on ensuring community services are well-placed and well-resourced to support the health and safety of Tasmanians during a period of rapidly increasing demand. Our priority as an industry is to continue to deliver the most essential services to the people and places that need them most.”

Today’s announcement comes on top of the $420 million first stage, announced on March 17, which included:

ONE-OFF emergency relief payments of $250 for individuals and up to $1000 for families who are required to self-isolate.

$5000 GRANTS for businesses taking on new apprentices or trainee.

A BAN on overseas travel for public servants.

WHAT’S IN THE GOVERNMENT’S PACKAGE

BUSINESSES AND JOBS

– water and electricity bills waived for the next quarter and price rises capped.

– government fees and charges frozen at present levels.

– payroll tax waivers and refunds for hospitality, tourism and seafood sectors and businesses with payrolls below $5 million for the entire 2019-20 year.

– $6.3 million Rapid Response Skills Initiative to help workers gain new skills.

– heavy vehicle registration waived for affected businesses

– the waiving of annual taxi licence fees for the calendar year 2020 at a cost of $240,000.

– local Government Loan Scheme boosted from $50 million to $150 million.

– small Business Interest Free Loan Scheme lifted from $20 million to $50 million.

– a new $40 million Small Business Grants Program.

– a $750,000 Digital Ready for Business Program and $750,000 in Business Continuity Advice.

– $200,000 for the THA and for Rural Business Tasmania for industry support.

– $1.8 million in additional fees and licence relief for 12 months.

– $1.5 million for Creative and Cultural Industries

– $2.6 million for time sensitive airfreight.

HOUSEHOLDS AND INDIVIDUALS

– a cap on electricity prices and water bills for the next financial year.

– freeze payment of the Community Fire levy next financial year.

– waiving school levies for this year at a cost of $13 million

– no rent rise for social housing tenants, and discounting of emergency payments as income for the purposes of calculating rent

– Funding for 75 more houses under the Private Rental Incentive Scheme

COMMUNITY ORGANISATIONS

– $5 million for community organisations to support vulnerable people through the provision of food hampers, medical supplies or counselling

– $2.7 million for measures to address family violence including rapid rehousing

– $2.5 million for the child safety and wellbeing system.

– $2 million in grants to boost the viability of sporting clubs

HEALTH

– $5m for primary healthcare

– $5 million more for child safety and family violence

– $4 million for mental health support.