The Federal Government has announced a second stimulus package for businesses impacted by the coronavirus economic effects.
This morning the Australian Federal Government delivered a second stimulus package estimated to be worth $66b. This package was designed around the following three key areas – resulting in 10 new initiatives being announced, these focused on:
This is an essential and well-timed move from the government.
This second stimulus package, unlike the first which was worth $17.6b is aimed directly at assisting your business to pause – if necessary – but keep paying staff and make it to the other side of this crisis.
Combined, these stimulus packages are equivalent to approximately 10 percent of the country’s gross domestic product. This second package is designed to be targeted, scale-able and timed at the moment – for a 6-month period. It will be delivered via existing systems within the Australian Taxation Office (ATO).
The inclusion of relaxed insolvency regulations for companies is also welcomed to ease the anxiety around bankruptcy and liability for directors in volatile times.
Immediate actions suggested to take:
Federal Government’s main focus at the moment appears to be to around strengthening the safety net designed to help individuals and families impacted by the coronavirus, while also minimising the number of people who are sufficiently impacted to the level that they may need to access the safety net.
The government is hoping to achieve this by focusing on helping businesses such as yours survive as intact as possible and staying connected with your workforces and supply chain. The focus is on helping your business help itself.
This is a positive strategy that indicates that the Federal Government has not given up on the possibility that a large portion of the private, mid-market and family business sector can cross the metaphorical bridge in reasonable shape, ready to ramp up operations once the focus shifts to recovery.
This combination of private and public support mechanisms means good business decision-making is still very much needed.
Information accurate at the date and time published.
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