Invest
Coalition unveils $20bn stimulus package
The Coalition government has announced a raft of stimulus packages targeted at businesses and households, following the coronavirus outbreak which has turned markets bearish and left the economy facing a recession.
Coalition unveils $20bn stimulus package
The Coalition government has announced a raft of stimulus packages targeted at businesses and households, following the coronavirus outbreak which has turned markets bearish and left the economy facing a recession.
Households will receive a stimulus payment of $750, with pensioners making up half of those who receive the payments, Prime Minister Scott Morrison confirmed in a statement this morning. This is predicted to help 6.5 million Australians.
While it is not part of the stimulus package, pensioners have received an additional bonus with deeming rates falling for pension recipients.
Employees will be able to access a sickness payment, which will be called the jobseeker payment, if they are a casual staff member, the Prime Minister noted in his speech.
Cash payments for businesses, wage subsidies for apprentices and an expansion of the instant asset write-off aimed at the sales of motor vehicles, tools and equipment will form the centrepiece of the business boost, which will start before April.
“We are dealing with the economic issues to keep Australians in jobs and business in business,” Mr Morrison said.
Mr Morrison highlighted how the package would look after younger Australians through paying wages, while supporting businesses with less than $50 million in turnover with support through their BAS.
“An important one today is the around 120,000 apprentices that would be at risk, that we are going to pay half their wage,” Mr Morrison continued.
Under the scheme, an eligible business that withholds tax for the Australian Taxation Office on employees salary and wages will receive payments of up to 50 per cent of the amount withheld, up to a maximum payment of $25,000.
The Prime Minister’s announcement will mean $3 out of $4 will go back into the economy.
Mr Morrison believes the package is just under 1 per cent of the total Australian economy and that the federal government is in a position to ramp up spending if required.
“It’s scalable and we have a budget coming up in a month’s time and the government is always in a position to do what it needs to do because it got the budget in balance,” Mr Morrison said.
The government’s stimulus package comes off the back of sharp market falls which have seen Australian equities go from a bull to a bear market in three weeks.
nestegg has a page dedicated to the latest updates around the coronavirus and its impacts on the economy and share markets. Stay up to date here.
RELATED ARTICLES
About the author
About the author
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
Economy
Fed decision set to pressure emerging market central banks to hike rates
The Federal Reserve's expected decision to maintain US interest rates at a two-decade high at its sixth consecutive meeting on Wednesday is set to put pressure on emerging market central banks to hike ...Read more
Economy
Fed keeps rates steady, signals higher for longer amid elevated inflation
The Federal Reserve kept interest rates unchanged at its May meeting and signaled that rates are likely to stay higher for longer given elevated inflation in the first quarter, while also announcing a ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
Economy
Fed decision set to pressure emerging market central banks to hike rates
The Federal Reserve's expected decision to maintain US interest rates at a two-decade high at its sixth consecutive meeting on Wednesday is set to put pressure on emerging market central banks to hike ...Read more
Economy
Fed keeps rates steady, signals higher for longer amid elevated inflation
The Federal Reserve kept interest rates unchanged at its May meeting and signaled that rates are likely to stay higher for longer given elevated inflation in the first quarter, while also announcing a ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
