The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
OtherFri 20 Mar 20

Government Unveils $66bn Coronavirus Stimulus Package

TUD+ MEMBER CONTENT
0f54aea5-20ef-4cf8-867e-d870eeb5e913
SHARE
8
print
Print

The federal government has announced a second-stage $66 billion stimulus package designed to help Australia’s economy avoid a Covid-19 related recession, while the nation’s pubs, clubs, casinos, and places of worship are set to shut down as of midday on Monday.

Dubbed the economic “safety-net” package, small and medium-sized businesses could receive tax-free cash payments of up to $100 thousand, along with support for households and assistance for casuals, sole-traders, and retirees.

Prime Minister Scott Morrison says the Commonwealth is also offering to guarantee unsecured loans of up to $250,000 for up to three years, while those in financial stress would be able to tap into their superannuation.

Sunday’s announcement brings the total stimulus package to $189 billion now injected into the economy designed “to keep Australians in work and businesses in business”, Morrison said during Sunday’s announcement.

The $189 billion includes the initial $17.5 billion for government’s economic stimulus package announced on 12 March—only ten days ago—the $90 billion funding facility from the Reserve Bank aimed to encourage lending to small and medium-sized businesses, and the $15 billion amount to deliver easier access to finance for small to medium-sized companies, announced by the treasurer on Thursday.

The total $189 billion figure is the equivalent of 9.7 per cent of GDP.

“There will be more packages, there will be more support,” Morrison said, flagging yet another fiscal injection, as talk on the nation’s economy shifts to talk of recession.


The stimulus package:

  • Superannuation: Those in financial stress due to the coronavirus could access $20,000 of superannuation over two years.

  • Government to offer unsecured loans of up to $250,000 for businesses with a turnover of less than $50 million, with no repayments required for the first six months.

  • Jobseeker allowance is now doubled.

  • A further $750 payment will be made to those on income support.

  • Businesses and not-for-profits with a turnover of less than $50 million a year could receive tax free, cash payments starting at a minimum of $20 thousand and up to as much as $100 thousand. The Australian Tax Office will deliver the payment as a credit on activity statements from 28 April.

  • Increased flexibility in insolvency and bankruptcy laws: Government is temporarily increasing the threshold that creditors can issue a statutory demand on a company, and will give up to six months to respond to the statutory demands they receive.

    The package also includes temporary relief for directors from any personal liability for trading while insolvent.

    This will see the Corporations Act 2001 amended to provide temporary relief for companies to deal with unforeseen events due to COVID-19.


On Friday, the federal budget was postponed until October, with a new restriction of one person per four square metres announced for indoor venues.

The government was due to deliver the budget in May, but this is now pushed back to 6 October due to “great uncertainty that exists”, with all states and territories also agreeing to push back their budgets.

Morrison outlined that the pandemic is likely to remain a problem for at least six months.

On Thursday, Canberra announced an investment of up to $15 billion towards smaller lenders aimed at supporting Australian consumers and small businesses.

Treasurer Josh Frydenberg revealed the $15 billion package following the Reserve Bank of Australia’s emergency cash rate cut to 0.25 per cent.

The $15 billion amount will be allocated to small banks and credit unions in effort to provide cheaper loans to small business and consumers during a “volatile time in global equity debt and credit markets”, with “small lenders providing competition for larger lenders,” Frydenberg said.

Speaking on the government and RBA measures put in place, Capital Economics said on Friday it expects output to decline by 2 per cent this year, and the unemployment rate to rise to 8 per cent.

With small businesses employing around five million Australians, the Australian Banking Association's chief executive Anna Bligh announced on Friday that the big four banks will defer small business loan repayments for six months during the economic fall out from the coronavirus crisis.

Related: Federal, State Governments Plan Further Coronavirus Stimulus

OtherOfficeAustraliaFinancePolicyPlanningPlanningPolicy
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
Without the $135.98-million injection it is claimed the Logan City Council would have had to stop approving new housing …
LATEST
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
3 Min
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
2 Min
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
3 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/coronavirus-delays-federal-budget-15bn-loans-to-businesses