The Government is acting decisively in the national interest to support households and businesses and address the significant economic consequences of the Coronavirus.
While the full economic effects from the virus remain uncertain, the outlook has deteriorated since the Government’s initial Economic Response announced on 12 March 2020.
The spread of the virus worldwide has broadened, and is expected to be more prolonged. Governments, both international and domestic, have announced stricter mitigation measures to slow the spread of the virus, which are having significant economic impacts.
On 30 March, the Government announced the $130 billion JobKeeper Payment to help keep Australians in jobs as we deal with the significant economic impact from the Coronavirus. This brings the Government’s total support for the economy to $320 billion across the forward estimates, representing 16.4 per cent of annual GDP.
These actions provide timely support to affected workers, businesses and the broader community.
The Government’s economic response targets three areas: (1) Supporting Individuals and Households; (2) Support for businesses; and (3) Supporting the flow of credit.
1. Supporting Individuals and Households
The Australian Government is providing financial assistance to Australians to support them through the Coronavirus. This assistance includes income support payments, payments to support households and temporary early releases of superannuation.
- JobKeeper payment for households
- Income support for individuals
- Payments to support households
- Temporary early release of superannuation
- Temporarily reducing superannuation minimum drawdown rates
- Reducing social security deeming rates
2. Support for businesses
The Australian Government is supporting Australian businesses to manage cash flow challenges and retain employees. Assistance includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.
- JobKeeper payment
- Cash flow support for small and medium businesses
- Temporary relief for financially distressed businesses
- Increasing the instant asset write-off
- Backing business investment
- Supporting apprentices and trainees
3. Supporting the flow of credit
The Government, the Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to ensure the flow of credit in the Australian economy. Timely access to credit is vital for businesses to manage the impacts of the Coronavirus.
- Support for immediate cash flow needs for SMEs
- Quick and efficient access to credit for small business
- Reserve Bank of Australia – Supporting the flow and reducing the cost of credit