Today, the Government announced a $17.6 billion targeted stimulus package to deal with the economic impacts of the coronavirus. This is an extract from PM Scott Morrison’s announcement this morning…

The action we are taking is temporary, targeted and proportionate to the challenge we face. This action includes:

$750 payments for around 6.5 million Australians, including 2.4 million pensioners. This will help Australians who need it, while improving the cash flow in our economy.
Payments up to $25,000 for employers with a turnover up to $50 million. This will boost cash flow for around 690,000 businesses employing around 7.8 million Australians.
A 50% wage subsidy for apprentices and trainees in businesses with up to 20 employees.
Increasing the instant asset write-off from $30,000 to $150,000, for businesses with annual turnover up to $500 million. This will help businesses get stronger, by investing in assets like building equipment, trucks, or tractors.
A 50% accelerated depreciation deduction for businesses (with a turnover less than $500 million). This will encourage and reward investment over the next 15 months.
A $1 billion fund to help sectors, regions and communities that are disproportionately affected – like tourism, agriculture and education.

The package has been carefully designed. Where possible, we are using existing delivery mechanisms, without the need to create new programs.

Importantly, we are not baking spending into the Budget bottom line for years to come. As our economy bounces back, our Budget will also bounce back.

As I said yesterday, we now have one goal in 2020 – to protect the health, wellbeing and livelihoods of Australians through this global crisis.

Australia will pass this test and emerge stronger on the other side.

More details to follow.

Rick Maggi