AUSTRALIA: COVID-19 FEDERAL GOVERNMENT AND STATE/TERRITORY SUPPORT MEASURES - UPDATE - 8 APR 2020
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AUSTRALIA: COVID-19
FEDERAL GOVERNMENT AND
STATE/TERRITORY SUPPORT MEASURES
UPDATE – 8 APR 2020SNAPSHOT OF SUPPORT MEASURES ACROSS AUSTRALIA 2
FEDERAL GOVERNMENT
$217 $5.6 Funding
and
$105 APRA relaxation of
certain bank
bn bn Liquidity bn requirements
Consumer and Business Health Regulator,
Including: $130bn ‘JobKeeper’ program to Including: $1.1bn for Health Dept Including: RBA govt. bond buying, law Relaxed legal
cover employee wages, $14bn income procurement of PPE, ~$1bn to RBA $90bn funding facility for ADIs obligations for
support supplement, $40bn new SME loan underwrite 657 private and NFP to support SME lending, AOFM $15bn financially
program (50% govt. guaranteed), $31.9bn hospitals in exchange for COVID- wholesale funding market support for distressed
payment to SMEs and NFPs to continue 19 capacity, $1.1bn for medicines small ADIs and non-ADI lenders companies
operations and maintain staff and equipment, $669m for
Medicare-subsidised telehealth
QUEENSLAND Health
Economic measures
$3 Consumer: e.g. job loss and $1.3
redeployment assistance, utility bill
bn assistance bn
Business: e.g. interest free loans,
payroll tax deferral
NEW SOUTH WALES Health
Economic measures
$3.1 Consumer: e.g. energy payment $850
assistance, long service leave flexibility
VICTORIA m*
Health
bn Business support;
capital works and public asset
Economic measures
$1.7 Consumer: e.g. unemployment $1.8
maintenance
*from $750m
assistance, job matching
bn Business: payroll tax refund and bn
deferral; business support fundSNAPSHOT OF SUPPORT MEASURES ACROSS AUSTRALIA (CONTINUED) 3
NORTHERN TERRITORY
Economic measures
$131 Business; e.g. jobs rescue and recovery plan,
small business survival fund; construction
m industry stimulus
WESTERN AUSTRALIA
Economic measures AUSTRALIAN CAPITAL
$1.3 Consumers: e.g. freeze
on household charges,
TERRITORY
bn energy payment Economic measures
assistance
Business: e.g. utilities $225 Consumer: e.g. public housing rental
support, residential utility concession
credit, grants, payroll tax
relief
^ Business: e.g. rental relief for tenants
of govt. owned properties, payroll tax
deferral/waiver, SME power bill rebate,
infrastructure projects and maintenance
Health
$515 Health
m $126
m
TASMANIA Health
SOUTH AUSTRALIA
Economic measures
$1.1
Economic measures
Consumer: e.g. cost of living
$835 Consumer: e.g. utility bill cap/ $162
freeze, emergency relief payments
concessions, land tax relief m^ Business; e.g. interest free loans, m
bn Business support; road and hospital emergency grants, govt. fee relief,
upgrades; tourism infrastructure payroll tax relief
^from $823mAGENDA 4 > Federal Government measures 5-6 > State and Territory Government measures: NSW and VIC 7 QLD and WA 8 SA and TAS 9 NT and ACT 10 > ANZ contacts 11
FEDERAL GOVERNMENT SUPPORT 5
$217B ON DIRECT ECONOMIC MEASURES; $105B WHOLESALE FUNDING SUPPORT; $5.6B ON HEALTH MEASURES
CONSUMER BUSINESS
> $1.6b (over 3 months) for childcare to pay 50% of sector fee revenue as long as services remain > Commercial Tenancies – mandatory code in each State and Territory:
open and do not charge families Apply if tenant or landlord eligible for ‘JobKeeper’, where turnover $50m or less
All parents eligible with priority to those working, vulnerable and disadvantaged children Landlords must not terminate lease or draw on a tenant’s security
Tenants must honour the lease
Additional $453m for pre-schools in 2021
Landlords reduce rent in proportion to lost turnover, through a combination of
waivers and deferrals
> $130b (over 6 months) for a $1,500 (per employee) fortnightly ‘JobKeeper’ payment Waivers must account for at least 50%, deferrals must be covered over the balance
Eligible to employers that have seen turnover fall >30% (50% fall if turnover >$1b); 15% of the lease term (in no less period than 12 months – starting after the pandemic
turnover threshold for charities period).
Cover all full-time, part-time, casual (employed >12 months) staff Freeze on rent increases (except retail turnover leases)
Reduction in statutory charges and benefit of deferrals for banks should be
Estimated to benefit 6m with payments from 1 May with eligibility status as at 1 March
shared/passed to tenant
> $4.8b for one‐off $750 payment to pensioners and income support recipients (majority to be paid > $31.9b for payments of $20k-$100k to SMEs and NFPs to continue operations and
in April) retain staff
100% of salary and wages; $10k-$50k payments
SMEs with turnover $14.1b for fortnightly (incremental) $550 coronavirus income support supplement for the next 6
Available from 28 April through ATO
months
Also additional payment from 28 July equal to total of all previous payments under
Expanding eligibility for existing support payments this measure
5,000 extra staff for Services Australia for delivery of new measures Benefit 690k businesses; 7.8m employees; 30k NFPs
> $4b for a further $750 payment to social security and income support recipients (except those > Govt will provide 50% guarantee of up to $20b to support $40b in new SME loans
who will get $550 coronavirus supplement)
> $1.3b for a 50% wage subsidy for SMEs to support jobs of 120k apprentices and
Paid from 13 July to approx. 5m people (approx half of whom are pensioners)
trainees (Jan-Sept)
Mutual obligation requirements removed until 27 April
> $700m to increase the instant asset write off threshold from $30k to $150k and expand
> Increase payment eligibility by adjusting partner income taper rates from $48k to $79k access to include businesses with aggregated annual turnover of $1.2b to allow those in financial stress to access their super up to $10k in FY19-20 and up to > $3.2b for time limited 15 month accelerated depreciation (50%) deductions (through to
$10k in FY20-21 (tax free, without effect on social security payment amounts) 30 June 2021) for businesses with a turnover 6 month exemption from responsible lending obligations for credit to existing SME
customers if there is existing borrowing
> $876m to reduce social security deeming rates by a further 0.25% (from 0.25% - 2.25%) Applies to new credit, credit limit increases and credit variations and restructures
where a proportion of credit used for business purposes
Benefit 900k pensioners and income support recipients
> Streamlined (80c per hour) work from home tax deductions (1 March – 30 June)FEDERAL GOVERNMENT SUPPORT (CONTINUED) 6
$217B ON DIRECT ECONOMIC MEASURES; $105B WHOLESALE FUNDING SUPPORT; $5.6B ON HEALTH MEASURES
HEALTH AND OTHER INDUSTRY SPECIFIC FUNDING AND LIQUIDITY REGULATION, LEGAL, TAX
HEALTH RBA APRA
> $1.1b ‘Advance to Finance Minister’ for Health Dept procurement of > Reduces cash rate 25bps to 0.25% > Expects ADIs and insurers to limit discretionary capital
PPE > To purchase (semi) govt bonds in secondary distributions, including deferrals of or prudent reductions
> ~$1b to underwrite 657 private and NFP hospitals in return for market to reduce 3 year govt bond yield to 0.25% in dividends
capacity during COVID-19 response > To provide $90b funding facility to ADIs at 0.25% > Relaxation of CET1 capital expectations (10.5%) during
Provide additional 30k beds and 105k staff for up to 3% of outstanding lending to SMEs COVID-19 period
States will also complete similar agreements with private hospitals > ADIs do not have to treat loan repayment
> $1.1b for medicines and equipment AOFM deferrals/holidays under customer support packages as
> $669m for Medicare subsidised tele-health services > AOFM to invest $15b in wholesale funding markets arrears/restructured
> $545m for additional aged care funding used by small ADIs and non-ADI lenders > Allows RBA funding facility to be included in ADI liquidity
> $500m for hospitals and stable funding measures
> $230m for CSIRO for testing facility and vaccine work > Defers implementaton of Basel III capital reforms by one
> $200m for charities and community organisations year, in line with the Basel Committee
> $150m for domestic violence support
> $74m for mental health support REGULATION AND LEGAL
> $30m for medical research > AusPayNet to increase PIN limit for contactless card
> $30m for training of health/aged care workers payments from $100 to $200 for initial 3 month period
> $30m public health communications campaign
> $4.1m for additional ICU online education for 20k registered nurses > Regulations that temporarily exempt credit licensees from
responsible lending obligations for certain lending to
OTHER INDUSTRY SPECIFIC existing SME customers
> $7.6m (over 6 months) to waive rent for SMEs/NFPs who occupy Govt
premises > Reducing to $0 the thresholds for all foreign investments
under the Foreign Acquisitions and Takeovers Act, such
> 12 month extension of stay for workers under Seasonal Workers that all proposed foreign investments require approval,
Program and Pacific Labour Scheme regardless of value or nature of the foreign investor
> 6 month pause on debt raising and recovery activity through Services > Relax legal obligations for financially distressed business:
Australia Increase threshold for creditors to issue a statutory
demand
> $1.013b aviation industry package for the refunding and waiving of Increase time companies have to respond to statutory
charges demands
$198m for regional air network Temporary relief for directors from any personal
$100m for regional airlines liability for trading while insolvent.
$159m upfront benefit based on reimbursements since 1 February Corps Act amendments for relief to deal with
unforeseen events
> $1b for tourism, agriculture and education sectors, including waiver of TAX
fees and charges > Admin relief for certain tax obligations, including deferring
$110m for international freight assistance for exporters tax payments up to four months
$50m for Export Market Development Grants (EMDGs)
$10m to waive Australian Fisheries leviesSTATE GOVERNMENT SUPPORT: NSW AND VIC 7
STATE CONSUMER BUSINESS OTHER HEALTH
NSW > $30m for Energy Accounts > $750m for Small Business Growth Fund with grants up to $10k > $500m to bring forward > $700m for NSW Health
($3.05b on economic Payments Assistance Applications open until 1 June for SMEs with 1-19 staff; turnover capital works and > $34m for homelessness
measures + scheme >$75k; and payroll below tax threshold of $900k maintenance > $10m to support charities
$850m (from and $6m for Lifeline
$750m) on health > Long Service Leave > Immediate payment of all NSWG suppliers in advance of contracted > $250m to employ additional > $58m for health worker
measures) flexibility: payment terms cleaners of public accommodation
Waive one-month notice Release $750m into NSW economy infrastructure such as > $25m for medical research
period for taking leave > Additional $750m (total $1b) for a ‘Working for NSW Fund’ to transport assets, schools and and vaccine trials
(by mutual agreement) sustain business, create new jobs and retrain employees (also other public buildings > $11m for
Ability to take this leave includes $250m for additional cleaning services) commercialisation of
in shorter blocks (rather > $250m to bring forward research products
than traditional monthly 1,000 new staff for Service NSW to be funded maintenance on public assets > $10m to partner with
blocks) > Waive payroll tax for ALL businesses for 6 months including social housing and industry to boost domestic
> $80m to waive a range of fees and charges for small businesses crown land fencing supply chains
> $34m to boost temporary including bars, cafes, restaurants and tradies
accommodation and private > Deferral of the parking space
rental assistance packages > $56m to bring forward payroll tax cuts by raising the threshold limit levy for 6 months
to $1m in 2020-21
> Deferral of gaming tax for clubs, pubs and hotels, and lotteries tax > Amend planning
for 6 months conditional on funds being used to retain staff requirements to allow
> Deferral of rents for 6 months for commercial tenants with less than construction sites to operate
20 employees in all Government-owned properties on weekends and public
holidays
VIC > $500m ‘Working for Victoria > $550m for full payroll tax refunds for FY19-20 to SMEs with payroll > $1.3b for an additional 4k
($1.7b on economic Fund’ to help unemployed $437m for VIC Health
measures) infrastructure or delivering > $60m to expedite elective
food > $500m to establish a ‘Business Support Fund’ for hardest hit surgery
Administered in sectors, including hospitality, tourism, accommodation, arts and > $30m to expand beds
consultation with the entertainment, and retail capacity
Victorian Council of Administered with the Victorian Chamber, Australian Hotels > $10m for PPE
Social Services and Association and Ai Group > $6m for medical research
Victorian Trades Hall > SMEs can defer payroll tax for first 3 months of FY20-21 until 1
Council January 2021
> Govt to facilitate job Will free up $83m
matching to find short-term > Commercial tenants in govt buildings can apply for rent relief
or casual roles > 2020 land tax payments deferred for SMEs
> Govt will pay all outstanding supplier invoices within 5 business days
Release $750m earlier
> Waive liquor licensing fees for 2020 for affected venues and small
businessesSTATE GOVERNMENT SUPPORT: QLD AND WA 8
STATE CONSUMER BUSINESS OTHER HEALTH
QLD > $500m to assist those who lose > $500m business loan (up to $250k) facility, interest free > $50m in gaming machine tax > $1.2b for fever clinics;
($3.03b on economic job/income and help redeployment into for the first 12 months, to enable staff retention deferrals for pubs and clubs emergency department
measures + key sectors Delivered through Queensland Rural and Industry capacity; acute care
$1.3b on health Development Authority > $27.25m aid package services
measures) > $300m to provide households with $200 including: > $70m for Mackay Health
off their utility bills > Defer payroll tax for ALL businesses for 6 months (from $7m international tourism > $24.7m for housing and
1 Feb 2020) promotion homelessness
$4.8m for the Tropical Far > $17.5m (over 6 months)
> Refund 2 months; provide a 3 month holiday; and an North and Gold Coast for accommodation for
additional 6 month deferral on payroll tax to SMEs regions ICU/COVID-19 health
Waiving fees for fishers workers
> Waiving liquor licensing fees for venues that have had to etc.
close Waiving liquor license
fees
> Rent relief for businesses occupying state premises Deferring tourism lease
payments
> $500 power bill rebate to SMEs and sole traders Rebates for marina and
jetty fees
> Office of State Revenue (OSR) will work with businesses
to create repayment plans for any deferred tax liabilities
> QLD Govt to fast track payment of suppliers
WA > $402m to freeze household fees and > $237m for a one-off $2,500 utilities credit for SMEs > $159m for relief fund to > $500m for health, PPE and
($1.3bn on economic charges (incl. electricity, water, motor support NFPs and community frontline service delivery
measures + vehicle charges, emergency services > $165m to waive FY19/20 payroll tax for businesses with organisations helping people
$515m on health levy and public transport fares) until at payrolls of up to $7.5m until July 2020 experiencing hardship > $15m for additional
measures) least July 1, 2021 hospital equipment
Budget previously included increase > $100m to waive (and refund) a range of state licence > $9m relief package for taxi
of 2% fees for SMEs for 12 months and on-demand transport
industry
> $116m to double (from $300 to $600) > Interest free payment arrangements for transfer duty,
and bring forward the Energy Assistance landholder duty, vehicle licence duty or land tax > $7m for a one-off $2,500
Payment (EAP) for current/future utilities credit for charities
pensioners and concession card-holders > $114m in measures: and community organisations
Businesses with payroll between $1m and $4m will
> Moratorium on customers in hardship receive one-off grant of $17.5k > Payment of community
having utilities disconnected. No interest ‒ Will impact 7.4k SMEs service providers (until 30
charges on deferred bill payments Bring forward (by 6 months) increase in payroll tax June) irrespective of service
threshold to $1m to 1 July 2020 provision
> Interest free payment arrangements for ‒ Will impact est. 11k SMEs
transfer duty, landholder duty, vehicle
licence duty or land tax > $25m to waive rental for SMEs and NFPs in Govt owned
buildings for 6 months
> Keystart customers can defer principal Also allow pastoral lease holders to request rent
repayments and waive interest costs by payments be reduced, waived or delayed
up to 6 monthsSTATE GOVERNMENT SUPPORT: SA AND TAS 9
STATE CONSUMER BUSINESS OTHER HEALTH
SA > $30m in Cost of Living Concessions > $650m Jobs Rescue Package, including: > $350m on a range of measures, including > Bring forward (to
($1.1b) with $500 one-off boost and bring $300m Business and Jobs Support Fund road and hospital upgrades, new tourism April) upgrade of
forward for households receiving to directly assist individual businesses infrastructure and increased funding for SA’s Flinders Medical
the Centrelink JobSeeker Payment and industry sectors Economic and Business Growth Fund to Centre (FMC)
> $13m in land tax relief, including $250m Community and Jobs Support support industry emergency
Ability to defer qtrly bills in Fund to help training and new skills Specific details yet to be decided, but department
FY20 for 6 months; > $60m for payroll tax relief likely centered on existing projects that
Increase Land Tax Transition 6-month waiver for SMEs (up to $4m can be brought forward
Fund from 50% to 100% in payroll) April to September > Defer costs linked to exploration and licence
FY21 6-month deferral for business (over $4m fees for the minerals and petroleum sectors
> Access to accrued leave for public payroll) until 31 December
sector workers where a family > Waive liquor license fees in FY21 for 2020-21 > $16m VET Market Continuity Package to
member has lost their job support non-govt training providers
> $1.6m for charities and food relief
organisations
TAS > $20m to cap electricity prices and > $50m (previously $20m) for SME (turnover > $150m (previously $50m) in interest free > $150m for essential
($835m (from freeze water bills and fire levy for $13m to waive/refund school levies exports sectors > $50m for the maintenance of public buildings > $5m for child safety
measures + in 2020 > $40m Small Business Grants Program with over 12 months and family violence
$162m on health > $6.7m to freeze rent for social $20m for emergency grants of $2.5k > $3.7m to waive fees for Rock Lobster, Crab, systems
measures) housing tenants > Waive and refund all FY20 payroll tax for the Abalone farmers for 12 months > $4m mental health
> Increase funding for Private Rental hospitality, tourism and seafood sectors and > $2.5m (previously $670k) to waive fees and support
Incentive Scheme by up to 75 for SMEs with payrolls $3m for primary
houses > Govt fees for SMEs frozen, waived and > $2m sporting club grants program healthcare
> State Govt casual workers will capped: > $2.6m towards an air freight service for time
receive 2 weeks special leave if Water and electricity bills waived for sensitive freight (e.g. seafood)
required to self-isolate SMEs on first qtr bill after 1 April > $1.5m for Creative and Cultural Industries
> Emergency relief payments of $250 Electricity bills capped and water bills and extend arts organisation contracts by 12
for individuals and up to $1000 for frozen in FY21 months
families required to self-isolate Other fees and charges to be frozen > $5m (previously $1m) for Salvation Army,
> $1m for emergency Waive certain fees for heavy vehicles and The Red Cross and Rural Business Tas
accommodation support for those registration > $240k to waive annual taxi licence fees for
placed on home quarantine > $6.3m for Rapid Response Skills Initiative to 2020
> $1m for front line worker assist with worker retraining / skills (up to > $100k for Tourism Industry Council of
accommodation $3k per individual) and establish Tasmania and the Tasmanian Hospitality
> Extend the First Home Owners redeployment pool Association
Grant at $20k for a further 24 > $750k for Business Continuity Advice service > $80k for Tasmanian Chamber of Commerce
months to 30 June 2022 (incl. $50k Small Business Council; $200k and Industry
THA; $200k Rural Business Tasmania) > Removal of the efficiency dividend on State
> Digital Ready for Business Program, to assist Government agencies over the forward
businesses go online estimates
> Youth employment payroll tax rebate scheme > 50% discount on liquor licencing fees and
from 1 April 2020 waive all application fees for 2020
> $2.1m for one-off $5,000 grants for > Waive tourism operator lease, license and
businesses that hire an apprentice or trainee entry fees in Q4-20
> Reducing payment terms by government > $2m per month to support racing industry
from 30 to 14 daysTERRITORY GOVERNMENT SUPPORT: NT AND ACT 10
STATE CONSUMER BUSINESS OTHER HEALTH
NT > $65 million Jobs Rescue & Recovery Plan > $11m construction industry
($131m) $30m Home Improvement Scheme with (matched) stimulus (building 15 new
grants up to $6k classrooms)
$20m for Business Improvement Scheme with
matched grants of up to $20k
$5m Business Structural Adjustment to upgrade
online presence etc. eligible to all business with a
focus on hospitality sector
$5m Immediate Works Grant for not-for-profit and
community organisations of up to $50k
Freezing SME Fees and Charges and Electricity
Prices until 1 July 2021
> $50m Small Business Survival Fund
$2k-$50k Survival Payments
$1k-$5k Rapid Adaption Payment
> $2m Tourism Resilience Plan with grants up to $50k
ACT > $250 rental support for all > Landlords eligible to apply for a waiver or rebate on > $20m on infrastructure > $126m for additional health
($225m on public housing tenants their commercial rates, tied to the rental relief passed projects and maintenance on facility infrastructure and
economic > $200 one-off rebate for onto their tenants local schools, roads, and equipment
measures + residential utility concession > Rental relief to tenants of ACT Government owned public transport
$126m for health holders properties > $5m for NGO’s for
measures) emergency relief /
> $150 rebate on residential rates > Defer the issue and payment of Q4 commercial rates
instalments by 4 weeks community support
> Freeze on ACT Government fees
and charges > Access to interest free deferrals of payroll tax > $1.5m for the Clubs
commencing 1 July 2020 for all businesses up to a Diversification Fund to
> Encourage rent reductions by at
payroll of $10m (SMEs up to $2m payroll already support employment
least 25% by sharing the cost
reduction 50/50 basis, capped exempt) > $500k grants funding for the
at $1,300 per quarter Anticipated to free up additional $100m of funds arts sector
> Delay the issuing and payments > 6 month waiver on payroll tax for hospitality, creative > $100k for Lifeline ACT
dates of all general rates notices arts, entertainment and construction industries > 'Jobs for Canberrans' fund to
by 4 weeks > $750 rebate for small business owners to help with allow ACT Government
> Defer general household rates power bills Directorates to continue
for 12 months with no interest employing people
> Waiving of fees for food business registration and
applied liquor licencing fees and outdoor dining fees > Funding for Clubs who
surrender gaming machine
> Rebate on the fixed charge on commercial rates for
authorisations
properties with an AUV below $2m
> ACT Govt to expedite payment of bills to SMEs
> One-off $5k to taxi drivers who lease their taxi platesIMPORTANT NOTICE
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