And with that, we’ll be wrapping up the blog for the day. Thanks to Amy Remeikis and Paul Karp for their work earlier.
The global coronavirus coverage continues on our international liveblog here:
Thanks for reading.
He adds that there is a special $1bn fund for places like north Queensland to help tourism recover.
“I know many Australians are anxious about this, and we still have a long way to go. But be assured we are taking action,”, he said.
And that concludes his address. A short message of calm, and a reiteration of the details of today’s economic stimulus package, but no major announcements otherwise.
Updated
The PM also said that there were three key aims of Australia’s coronavirus response.
“I want to reassure your family tonight that while Australia is not immune to this virus, we are well-prepared. And we are well-equipped to deal with it.
“Our plan has three goals. One, to protect Australians’ health. Two, secure Australians’ jobs and livelihoods. And three, set Australia up to bounce back stronger when the crisis is over.”
Updated
Morrison is talking about the economic stimulus package announced today. To recap, that is a $17.6bn package, including cash handouts of $750 to 6.5 million people on low incomes, cash payments for businesses, wage subsidies for apprentices and a lifting of the threshold of the instant asset write-off.
He says the package will help Australia’s economy “bounce back” after the virus.
Updated
Morrison has begun his address to the nation. He says 140 people in Australia have contracted the virus.
He says the majority of symptoms are mild but “for those Australians whose health is more vulnerable, especially the elderly, the risks are more severe.
“There are very real and significant economic impacts. For all of these reasons we have been taking the coronavirus very seriously.”
Scott Morrison’s press conference was announced earlier on Thursday morning – the last time a PM did a similar prime time address to the nation was during the global financial crisis in 2008.
BREAKING: Scott Morrison will do a rare 'Address to the Nation' 7pm Eastern Daylight time tonight on coronavirus. The last time this occurred was Kevin Rudd during the GFC.
— Thomas O'Brien (@TJ__OBrien) March 11, 2020
Scott Morrison to address the nation at 7pm
Welcome back to our politics live blog special edition. I’m Naaman Zhou and I will be your blog host for this evening as the prime minister, Scott Morrison, addresses the nation on the coronavirus outbreak.
Where to leave it as we conclude for the evening? Well, I think the first thing people will want to know is whether they are getting any money from the stimulus package – so start with this handy explainer.
I didn’t get anything. Did you? Well, if you have your job and have your health, maybe that should be enough. Oh, and a large palette of toilet paper. Only one. These are the necessities in tough times.
Thanks to Amy Remeikis for blogging through the blizzard of announcements and my colleagues Sarah Martin and Katharine Murphy for carrying the news and commentary.
If dear readers haven’t got their politics fix for today, Scott Morrison is due to make a televised address to the nation at 7pm. It’s the Australian equivalent of one of those Oval Office set-pieces. They don’t happen very often, so get excited.
We’re also recording a politics live podcast on the first stretch of the political year but you’ll have to wait a little longer for that. Until next time!
Updated
Labor to support stimulus; government ponders Europe ban
Let’s take a moment to assess the sum of known parts for today:
- The Morrison government announced a $17.6bn coronavirus stimulus package including $750 payments to low-income earners and welfare recipients and $8.7bn of measures for businesses
- Experts welcomed the package but suggested further cash payments may be needed further down the line
- Labor has indicated it will support the package, to help it reach workers and the economy as soon as possible
- Australian unions are not pleased casuals will not get paid leave but will have to apply for the existing sickness allowance, which has had one week trimmed from the wait period
- Donald Trump announced a suspension of travel to the US from Europe
- The Australian government has asked its panel of medical experts whether Australia should follow the US lead and ban travel from Europe
- The existing travel ban on China, South Korea, Iran and Italy was extended by a further week
- Further cases of coronavirus were confirmed in Victoria, and the first for the Australian Capital Territory
- Australian authorities are still not advising people to self-isolate unless they have come into contact with people with coronavirus
Updated
The finance minister, Mathias Cormann, has been asked on ABC TV about the US decision to impose a travel ban on people coming from mainland Europe.
Cormann compares the decision to escalating trade tensions between China and the US in 2019, because the Australian government “made the point then that decreased global growth will impact Australia”.
Similarly, the travel ban “will have consequences in terms of our domestic economic outlook” and the Australian government will “continue to respond” when facts change in an evolving situation.
Asked if Australia should follow Donald Trump’s lead, Cormann replies “that is not the advice we have in front of us” (that travel from Europe should be banned). He also notes “we don’t have direct flights between Australia and the Schengen area of mainland Europe”.
Updated
Labor’s shadow treasurer, Jim Chalmers, has told ABC TV Labor will be “as supportive as possible” of the stimulus package and help ensure it reaches the economy as soon as possible.
He said it “remains to be seen whether it is enough and whether it will be deployed fast enough”.
Chalmers said it’s not Labor’s job to “quibble with what’s out there – we’ve been supportive of what’s been proposed”.
But Chalmers does quibble:
- “It’s self-evident most Australians won’t be receiving support in this package today”
- “There is a role for cash payments” – and the Coalition is wrong to play down the extent to which they helped avert a recession after the global financial crisis
- There are issues with casual workers that don’t have access to sick leave – Labor is worried compensating them through the sickness allowance “will be a deterrent” because people will have to “get into the Newstart system” to receive the payment;
- Chalmers also noted there is no guarantee that small and medium businesses will spend their $25,000 grants on maintaining their workforce
Chalmers said the government has to be held accountable for saying the budget is “back in the black and the economy is back on track – neither of which turned out to be true” but the “highest priority” is to help workers and the economy.
Updated
Anthony Albanese is in Mackay speaking about a McKell Institute report on casualisation in the mining industry. He has also responded to the government stimulus package.
Albanese:
What we have is a government defined by its complacency: whether it’s last year in terms of – the economy was very flat, we had three interest rate decreases, monetary policy was doing all the heavy lifting, the Reserve Bank said there was a need for fiscal policy to do some assistance, we had consumer demand down, productivity growth going backwards, wages that are stagnant.
What we needed at that time was greater government concern. Then the bushfires came along, they were complacent there – they said ‘we’ve seen fires before, it’s a states issues, no need to act’.
Now on coronavirus we’ve seen, after just days ago they said that cash payments were inappropriate and should never occur … today we have an announcement of cash payments to pensioners and people who are Newstart recipients. That’s a good thing. We need to stimulate the economy and it needs to be done right now.
Asked whether sickness allowance will be insufficient to stop people going to work, Albanese replied “I haven’t said that”.
That is, however, the ACTU and the Greens’ position, so it will be interesting to see if Labor steps up its attack in coming days.
Updated
With less than half an hour of trade left to go on the Australian market, it looks likely to finish the day down between 5% and 6%.
But it’s hard to be sure because the market is extremely volatile today.
It was about 2% down in early trade before sliding a percentage point as Australian prime minister Scott Morrison and treasurer Josh Frydenberg announced details of a $17.6bn stimulus package.
President Donald Trump’s announcement that most travel from Europe to the US would be banned sent the market into panic selling mode, with the benchmark ASX200 index diving to be as much as 7% down for the day.
It has recovered slightly since then. At about 3.45pm it was down 5.4%.
Updated
ASX200 down more than 5% in today's trade pic.twitter.com/gzjcoYReke
— Paul Karp (@Paul_Karp) March 12, 2020
Australia extends existing travel ban for China, Iran, South Korea and Italy
On Thursday the national security committee of cabinet met and decided to extend the existing ban on travel from China, Iran, South Korea and Italy by one week.
Under the rules of the travel ban:
- Foreign nationals are not allowed to enter Australia for 14 days from the time they left the affected country;
- Australian citizens and permanent residents are able to enter Australia but are required to self-isolate at home for 14 days from the day they left the affected country.
Australia is still reviewing whether to extend a travel ban to Europe.
Updated
AAP reports that the Australian Capital Territory has its first confirmed case of coronavirus:
The man aged in his 30s was tested for Covid-19 at the Weston Creek Walk-in Centre clinic on Wednesday, with the positive result confirmed on Thursday.
He’s being treated at Canberra hospital and precautions are being taken to ensure the safety of staff and the broader community.
ACT chief minister Andrew Barr says more cases are expected in coming weeks.
“This, however, is not cause for alarm,” he said. “We’re asking Canberrans to work with us to minimise the spread of the virus.”
ACT chief medical officer Kerryn Coleman said the man had been overseas but outside the 14-day window. However, he has been interstate.
“We need to spend a little bit of time looking at this person’s movements in the 14 days prior to when he first became unwell to see whether we can identify any linkages with any other cases,” Coleman said. “I think it’s most likely he has been in contact with someone domestically.”
The man first felt unwell on Tuesday with a fever and fatigue.
Every state and territory now has at least one case of the coronavirus, which has been declared a global pandemic.
Updated
Another noteworthy aspect of the Australian Chamber of Commerce and Industry’s response to the stimulus package is the prediction that the worst is yet to come as far as the impact on tourism is concerned.
ACCI’s chief executive, James Pearson, said $1bn of assistance to tourism-dependent areas is welcome but:
These regions have already seen falls of 40% or more in their normal revenue, yet most of the nationwide economic impact from Covid-19 is still ahead of us. Without assistance, businesses in these regions will find it impossible to survive and are likely to cut jobs.
In addition to travel, cancellation of major events, exhibitions and even smaller conferences and meetings will hit tourism and event businesses very hard.
Businesses such as travel agents are also already feeling the pain and hopefully the cash injections will help, although the extent of their revenue loss will be too great for some. More may be needed if this crisis continues.
Updated
Jenny Mikakos says Victoria now has 27 cases of Covid-19, with six new cases confirmed overnight. Five of the six have international travel histories, and the sixth was known to the others.
Hunt says that so far the expert body of chief medical officers has not changed its advice on mass gatherings.
“We’ll continue to listen to their advice, but at the same time we’re planning for all contingencies,” he says.
Asked about the Formula One event in Melbourne, Mikakos reiterates that the advice at this stage is there is no need to cancel major events.
She concedes “extreme social distancing” may be required when “significant community transmission” occurs from unknown sources but “we have not reached that point yet”.
There is no update on the Formula One team members tested for Covid-19.
Updated
Australian government assessing travel from Europe
The federal health minister, Greg Hunt, is opening the National Drug Discovery Centre with Victorian health minister, Jenny Mikakos and providing an update on coronavirus.
There are 118 countries with confirmed cases, a total of 125,000 globally with 4,600 lives lost. In Australia there are 128 cases “confirmed and reported”, Hunt said.
Hunt said Scott Morrison and the national security committee have met and decided to refer the question of travel from Europe to the Australian Health Protection Principal Committee (composed of chief medical officers).
So the Australian government is seeking expert advice on whether to follow Donald Trump’s lead and put a travel ban on Europe.
Updated
The Australian Chamber of Commerce and Industry, like other employer groups, is pleased with the stimulus package.
ACCI chief executive, James Pearson, said:
Small businesses across the country will bear the brunt of restrictions on the movement of people and an economic downturn.
These businesses have endured challenging trading conditions for a long time due to sluggish growth in consumer spending and difficulties in accessing finance, which makes them extremely vulnerable to further deterioration in the economy.
The changes to the instant asset write-off put more money in a small business owner’s pocket today, representing a discount at the time of purchase of up to 30 per cent on the purchase of plant and equipment by a business in the current year ...
The supply and demand shocks resulting from COVID-19 require immediate support for both business cash flows and consumer demand. More than ever, cash flow is king.”
Pearson called for grants of up to $25,000 for small and medium businesses “to be delivered through the tax system, so as to minimise paperwork and red-tape for businesses to access the grants”.
ACCI also supports one-off direct payment of $750 to social security recipients, veterans and other income support recipients, because it will have a knock-on effect in the under-pressure retail sector.
“This payment is targeted at those on low disposable incomes that are the most likely to spend any increase in income immediately. It will give them the confidence to spend rather than save their money,” Pearson said.
The fiscal stimulus announced today means the government and the Reserve Bank of Australia are pulling in the same direction, as RBA deputy governor Guy Debelle noted yesterday.
But economic analysts such as Capital Economics still expect the RBA to cut the cash rate again to 0.25%.
In an analysis of the measures, Capital Economics said:
- The stimulus package was larger than we had anticipated and includes total measures of $17.6bn
- The instant asset write-off “sweetener” will only last until June this year, “providing a strong incentive for firms to invest in machinery and equipment in Q2”
- The fiscal stimulus may prevent a recession by boosting business investment in the second quarter
- We doubt the RBA will wait until the effects of that stimulus becomes visible and we reiterate our forecast of another o.25% cut at the April meeting.
The Business Council of Australia has responded positively to the stimulus package, which it has labelled “targeted and well thought through”.
The BCA chief executive, Jennifer Westacott, said:
The fact that three in every four dollars of the package is directed to business recognises that it is business that will keep people working.
Businesses need to bring forward their investments, particularly fast-track investments that generate economic activity and jobs, especially in regional areas.
We have called for a focus on investment for some time and we welcome the government’s response to that.
We particularly commend the instant asset write off and accelerated depreciation initiatives which will encourage investment and allow small and medium-sized businesses to grow. We strongly support the direct assistance to business to allow them to keep people working.
Moving to protect apprentices is also a positive move. We must keep apprentices working so we have the skills to run the economy post this crisis.”
Westacott suggested the budget in two months “will give us a chance to do the heavy lifting of making sure the recovery is permanent and the economy bounces back stronger than before, particularly given growth was below average before this series of crises”.
That’s interesting – it picks up on a point the shadow treasurer, Jim Chalmers, has made for a while: economic weakness predates coronavirus. It tends to suggest from the BCA’s perspective, today’s stimulus is the first response not the end of the story.
Updated
The Australian Council of Trade Unions has had a fair bit to say about the government’s decision to waive the one-week waiting period for sickness allowance instead of pushing for employers to grant casuals paid sick leave.
ACTU secretary Sally McManus said:
In order for our country to slow down the spread of the virus and to stop infecting at-risk people, workers will need to make decisions to self-isolate. We must remove the financial penalty for people to make this decision. Newstart payments are far less than what nearly all casual workers are currently paid, so the financial penalty remains. This announcement by the prime minister falls far short of what is required. Public health concerns must be put first, this response fails to do so ...
We’ve seen the Morrison government go from ignoring casual and contract workers to suggesting they should have been putting aside money just in case there was a pandemic to now putting them on poverty-level welfare payments.
But on the plus side, Woolworths, Telstra, catholic schools in Wollongong, Macquarie University and Southern Cross University have decided to support casual workers with paid leave.
We’ll see which other employers join the bandwagon.
Updated
Jim Chalmers and Anthony Albanese will give their “considered” position on the stimulus tomorrow from Brisbane at 9.30 (daylight saving time).
Updated
Acoss has also responded:
In response to the $750 one-off payments for people receiving payments including Newstart, Youth Allowance, Austudy, Disability Support Pension, Carers Payment, Family Tax Benefits, Commonwealth Senior Health Card Holders and the Age Pension, from March 31, 2020, with one payment per eligible person, Acoss CEO Cassandra Goldie said:
‘People are doing it really tough, especially people on Newstart and Youth Allowance – the lowest payments – and pensioners who don’t own their home. The payment will be welcome short-term relief but it’s nowhere near enough. Leading economists urged the government to increase Newstart ongoing to build consumer confidence and to guarantee that the payment would be spent into the real economy.
‘We know that increasing Newstart by $95 per week ongoing would inject $4 billion into the economy a year and generate more than 12,000 jobs, helping to deliver the ongoing confidence business is crying out for.
‘We’re calling on the government to urgently increase Newstart by $95 per week ongoing by the federal budget to help lift people out of poverty and prevent those facing job losses from falling into the poverty trap, while rebuilding the economy.
Updated
Jim Chalmers has said Labor supports some of the measures, and will look at the package.
The $750 payment is one of those measures they support.
But they think the government needs to go further.
Updated
Now, there is still the possibility that the parliament meeting scheduled at the end of this month could be cancelled if the coronavirus pandemic reaches the critical levels.
If that happens, and the government needs to legislate it, there could potentially be a measure where, with bipartisan support, the parliament could do it administratively.
But we haven’t reached that bridge yet.
Updated
All agencies are getting the social media “go” treatment
Cash flow support for small and medium-sized businesses who employ staff, and wage subsidies for those with trainees and apprentices. Part of the Australian Government’s Economic Response to the Coronavirus. #Coronavirus https://t.co/HTBRbWyaBA pic.twitter.com/8bacR5bj8j
— Australian Treasury (@Treasury_AU) March 12, 2020
Updated
The Council on the Ageing has also welcomed the stimulus response:
The $750 payment will help all pensioners with buying essentials that many aged pensioners are missing out on, and the cut in the deeming rate will help those affected cope better with low interest rates.
Under the new deeming rate arrangements age pension recipients whose cash assets are assessed through deemed interest income could see up to $62 extra a fortnight for couples and up to $50 a fortnight for singles.
Updated
Not sure if this will calm the ASX – but Donald Trump is clarifying his speech to take out the reference to what amounted to a trade war with Europe
Hoping to get the payroll tax cut approved by both Republicans and Democrats, and please remember, very important for all countries & businesses to know that trade will in no way be affected by the 30-day restriction on travel from Europe. The restriction stops people not goods.
— Donald J. Trump (@realDonaldTrump) March 12, 2020
The housing industry has given the stimulus package a thumbs up:
The Federal Government’s stimulus package is a welcome step to rebuilding consumer confidence and business continuity during the coronavirus, according to the Urban Development Institute of Australia (UDIA).
UDIA National – the nation’s peak organisation for the urban development industry – said the stimulus should help maintain cash flow, jobs and business activity across the economy.
It also urged Government to reserve the capacity to introduce a second round of stimulatory measures if the economic effects become worse.
Wayne Swan has gone on an absolute re-tweeting spree.
This is the gist of it
Bald faced porkies by the PM about Labor’s stimulus is not a great way to build trust in the Governments measures which require public confidence to make them effective #auspol
— Wayne Swan (@SwannyQLD) March 12, 2020
The ATO has responded to the stimulus package:
We understand this is a time of significant uncertainty and that we will need to be flexible in how we help businesses.
Options available to assist businesses impacted by Covid-19 include:
- Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
- Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
- Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
- Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
- Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Employers will still need to meet their ongoing super guarantee obligations for their employees.
Updated
The ASX200 was down 2.1% just as Donald Trump started speaking. It is now down 7.6%
— Shane Wright (@swrighteconomy) March 12, 2020
After the Trump announcement, the Australian stock market was down 4.8%.
It was down 3% after the stimulus announcement.
Updated
And the big concern from Senator Siewert is:
Casual workers under 22 appear to be ineligible for the ‘sickness allowance’ the government says is an alternative to sick leave.
The government must consider delaying the rollout of new Jobseeker payment, which will see the sickness allowance phased out and those who are sick put on a jobseeker payment and have to apply for an exemption from activity tests.
Centrelink’s workload will increase with the Covid-19 response rollout and the stimulus package and I am very worried about people falling through the cracks and not getting timely assistance and support from Centrelink.
Centrelink is not fit for purpose and continued staff cuts, lack of appropriate investment and management of the robodebt debacle means that Centrelink is under strain with its current caseload, let alone the added load we are going to start seeing.
Updated
Greens senator Rachel Siewert has put out her own statement response to the stimulus package:
This is an insult to all those people condemned to living below the poverty on Newstart and Youth Allowance,” Senator Rachel Siewert said.
Any additional payment to those living in poverty will get spent but this is simply not enough. Newstart and Youth Allowance needs to be increased immediately.
The Greens have made a further announcement on what Paul Karp reported a little earlier, about extending the stimulus package for those with unsecured work:
The stimulus package outlined by the prime minister this morning falls far short of what the experts say is needed to weather the economic storm caused by the coronavirus pandemic and does little to stem the crisis facing people on Newstart and Youth Allowance as well as the 3.5 million casual workers in Australia, said leader of the Australian Greens Adam Bandt, MP.
The Greens will move to expand the package when it reaches the Senate to lift Newstart and Youth Allowance as well as provide 14 days’ paid coronavirus sick leave to all workers, including casual workers.
Updated
Australian politicians are making the joke you’ve already made:
At least Tom Hanks has a bit of practice at this “self isolation” thing pic.twitter.com/rj0G0Bf4Ar
— Stephen Jones MP (@StephenJonesMP) March 12, 2020
The social media campaign has begun
Our $17.6 billion economic plan in response to #coronavirus is about keeping Australians in jobs, keeping businesses in business and supporting households to ensure we bounce back stronger on the other side. See details ➡ https://t.co/uNQb2qNBYZ pic.twitter.com/ra6IXRI4A5
— Scott Morrison (@ScottMorrisonMP) March 12, 2020
The Greens had decided this prior to Scott Morrison’s stimulus announcement (from Paul Karp):
On Wednesday the Greens federal party room decided that when parliament returns it will introduce a private member’s bill to provide 14 days of paid sick leave for all workers, including casual employees, if they are unable to work due to Covid-19.
That would include workers diagnosed with the virus, those required to self-isolate, people who are unable to attend their workplace as it has been shut down due to Covid-19, and those caring for another person.
Updated
Tom Hanks and wife Rita Wilson test positive for coronavirus on Gold Coast
Meanwhile, Tom Hanks has announced he and his wife have received positive coronavirus tests, while visiting Australia. He has been shooting a movie on the Gold Coast.
Updated
The Australia Institute’s senior economist, Matt Grudnoff, says the stimulus announcement is the right size “but the shape is wrong”.
The prime minister asserted $3 in every $4 dollars of stimulus would go to business – it should be the other way round. Commonsense and recent history tells us that businesses don’t spend when their sales are falling.
The best way to help Australian businesses right now is to get cash through the cash registers. Businesses with plenty of customers don’t lay off staff.
The most effective part of the package is the $750 to welfare recipients. We know people living on the brink spend any extra money they receive on essentials, and this will support demand in the economy.
Updated
Scott Morrison encouraged people to keep living their life – which means heading to events, unless you are in a vulnerable group:
Well, it’s very simple. You follow the health advice. I’m going to footy this weekend.
I’m looking forward to it. And I’m sure many Australians would, and I encourage you unless you’re ill, and unless there’s a reason – if you’re in self-isolation for medical reasons or you’re actually ill – that I wouldn’t suggest you go.
But the health advice is not for that to happen at this point.
On Melbourne’s Grand Prix:
Well, the organisers should take the health advice, both from state health officers, and that is available, and certainly at a commonwealth level, then Dr Murphy has been providing advice on those issues.
And there have been no suggestions from those body of health advisors for that to occur at this point.
Now, we can’t know the future.
And if at some point in the future, the health advice would have changed, I’m sure they’ll give that advice.
But right now, I would continue to say: I think there’s 120-odd people who have contracted the coronavirus in Australia, about a fifth of those have already cleared the virus.
Almost half close to clearing the virus, those numbers are a low compared to what we’re seeing in other countries.
But that’s not to say it will stay that way.
But as Dr Murphy has said on numerous occasions, for most Australians who might contract coronavirus, then they are likely to have a mild effect from that virus.
Those who are more at risk, of course, the elderly, particularly those who are in aged care facilities, and potentially those in remote Indigenous communities.
And that’s why we put in place the health measures that I announced yesterday ... it’s helpful not to speculate until things are known.
And at this point, the health advice is not advising that, but obviously down the track, depending on how events unfold, then that advice might, you know, prove to the event organisers having different plans.
Updated
Donald Trump echoes Scott Morrison:
“This is not a financial crisis, this is a temporarily moment in time,” he says.
Trump announces suspension of all travel to US from Europe
Donald Trump is addressing his nation – he is suspending all travel from Europe to the US for at least a month.
That is going to have a pretty big hit on the economy.
Australia won’t be immune to these changes either.
Updated
Right, so to answer some questions about the payments I can see popping up – with the caveat that this is what I know at this time:
- The sickness allowance will roll into the JobSeeker payment. So if you needed it after 20 March, you would apply for the JobSeeker payment.
- There will be no waiting period BEFORE you apply, but there will be at least a five day wait AFTER you apply, as the payment is processed.
- It IS means-tested. So if you have money in the bank, you most likely won’t be eligible.
- It is the same amount as Newstart.
- That means singles – $559.00; singles with kids/over 60s – 604.70, partnered $504.70.
- The $750 allowance is PER person, but not per PAYMENT*. So if you are eligible for multiple payments, you still only get the $750 once. But if you and your partner are eligible for payments, you should each receive it
- It appears to be open to anyone who receives a government payment currently – which includes the family tax benefit.
- Those payments will start following from 31 March and should just turn up in your bank account if you are eligible.
*This previously said per household, but that advice has been clarified
Updated
Stimulus package not enough for the stock market
The stock market has given the thumbs down to the Morrison government’s stimulus package.
Shares, which were already down about 2% when Australian prime minister Scott Morrison and treasurer Josh Frydenberg began talking at around 10.35am, fell as the politicians spoke.
Within 10.50am the benchmark ASX200 was down 3%.
After some choppy trade, it was off by 2.9% at 11.30am.
The package relies heavily on money for business, which gets around three quarters of the stimulus, and while there is cash for people on benefits, the amount is less than that handed out by the Rudd government during the global financial crisis and there is nothing for workers without families.
Updated
Anthony Albanese gives his first response to the government stimulus package:
Labor’s priority is keeping workers in their jobs and businesses afloat. We’ll be constructive. But the inescapable fact today is this:
— Anthony Albanese (@AlboMP) March 12, 2020
The economy was floundering long before coronavirus. Wages are going nowhere and families are struggling – all on this complacent Govt’s watch.
Once again, because social media is taking off on this.
The sickness allowance is one of the payments being ROLLED INTO the newly named “JobSeeker” payment after 20 March.
So the NAME sickness allowance will cease to exist, but the payment won’t.
Yes, there are problems with the five day processing and things, and the means testing will mean people will miss out. But let’s not scare people unnecessarily. Check where you are getting your information from.
Updated
And as the prime minister finishes his press conference, the last territory without coronavirus, falls
#breaking: The first case of Coronavirus in the ACT has been confirmed. Govt say it's a male in his 30s. @abccanberra
— Tom Maddocks (@MaddocksThomas) March 12, 2020
So that gives you a flavour of what the address to the nation will look like at 7pm tonight.
Asked if whether he was “counting your chickens before they hatched” by declaring the budget was “back in black”, Scott Morrison gets the most defensive he has been this press conference.
Which of you understood the coronavirus was going to occur when we handed down the budget last year?
A quick show of hands. Of course no-one did.
Asked how Labor could have predicted the global financial crisis in that case, Morrison says:
Let’s be clear about what happened with Labor’s four surpluses announced … that was in 2012, the GFC had passed. Labor promised four surpluses based on an iron ore price of US$180 a tonne forever!
They didn’t achieve a surplus because their forecasting and their estimates and the construction of their budget was flawed.
What is occurring here, is the government has made a clear choice, having brought the budget back to balance, which was demonstrated in the mid-year statement, and the mid-year statement showed, even with more conservative forecasts, that we were on track, we were right on track, and the coronavirus has had the obvious impact and it has required the decision the government has taken to put in place their significant economic stimulus.
I believe Australians believe with those priorities. We will always do what is right for the Australian economy, what is always right for the Australian people, their health, their wellbeing, their livelihood, and to ensure that whatever we face as a country we will always bounce back stronger.
Thank you all very much.
Updated
Casuals still have to wait at least five days for sick payment to kick in
Asked if Centrelink would be able to handle the loan, Scott Morrison says while the government is waiving the waiting period (currently set at least a week) there is the “normal processing time”, which Anne Ruston has told him is “about five days”.
“What I am saying is it about a five-day period for processing, you put your application in and it takes about five days. Now previously there was a waiting period you would have to wait out and then make that application. We will be waiving that waiting period, and that will be provided for Newstart as well.
“... This is a good element about our system, there are many other countries in the world who don’t have this and I can understand the concern that casual employees would have had. I am encouraged by the lead of the early response by large businesses and I would hope that other large businesses would follow the lead of Telstra, and I expect that they would from some of the messages that I have.
“The government will be doing its bit by supporting that program and waiving the waiting periods to provide that support at the Newstart rate.”
Updated
Scott Morrison asks for a show of hands from the media of who saw the coronavirus happen and says that is one of the reasons it can’t be embarrassed it called the budget “back in black” when clearly it is not (and hasn’t been).
And yet, Christian Porter seemed to suggest that casuals should have been prepared for an unexpected two weeks off, because they receive a higher hourly wage in exchange for giving up entitlements such as sickness leave, when asked on Monday, but it is amazing how quickly things can change.
Updated
For anyone who may need the currently named sickness allowance, you will find the DSS information here
The Australian food and grocery council (who knew such a thing existed?!) is quick off the mark to say thank-you to the government for the stimulus package:
Our sector plays an integral role in Australia’s economic and social fabric, with an annual turnover of $122.1 billion,” said AFGC Acting CEO, Dr Geoffrey Annison in a statement
‘The sector employs more than 273,300 Australians, representing almost 40 per cent of total manufacturing employment, and it is also the lifeblood of many regional and rural communities, where 39.3 per cent of these jobs are based.
Updated
There will be no changes to the sickness allowance (which will roll into the JobSeeker payment on March 20) asset test. The only thing that will change is the waiting period.
There have been issues with it in the past:
Updated
For context, the office of Greens senator Rachel Siewert tells me that as of September 2019 4,966 people were on sickness allowance.
Stimulus at a glance
- The package is worth $18bn in this financial year and $22bn over the 15 months it will run
- The instant asset threshold is increased from $30,000 to $150,000
- The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses.
- Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months, from 1 January 2020 to 30 September 2020
- Households which receive a government payment will receive $750 from March 31
- $1bn “Coronavirus fund”
Updated
4. Assistance for severely affected regions
This measure provides $1 billion to support regions most significantly affected by the Coronavirus outbreak.
Support for coronavirus-affected regions and communities
The government has set aside $1 billion to support those regions and communities that have been disproportionately affected by the economic impacts of the coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
This will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and the waiver of entry fees for commonwealth national parks.
It will also include additional assistance to help businesses identify alternative export markets or supply chains.
Targeted measures will also be developed to further promote domestic tourism. The Australian Tax Office (ATO) is also providing administrative relief for some tax obligations for people affected by the coronavirus outbreak, on a case-by-case basis.
The ATO will set up a temporary shopfront in Cairns within the next few weeks with dedicated staff specialising in assisting small business.
In addition, it will consider ways to enhance its presence in other significantly affected regions, making it easier for people to apply for relief.
The ATO is considering further temporary shopfronts and face-to-face options.
Updated
3. Stimulus payments to households to support growth
This measure will assist around 6.5 million lower income Australians, which will support confidence and domestic demand in the economy.
The government will provide a one-off $750 payment to social security, veteran and other income support recipients and eligible concession card holders.
Around half of those that will benefit are pensioners.
There will be one payment per eligible recipient. For example, if a person qualifies for the one-off payment in multiple ways, they will only receive one payment.
The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and veteran payments.
Updated
2. Cash flow assistance for businesses
This assistance will support businesses to manage cash flow challenges resulting from the economic impacts of the coronavirus and help businesses retain their employees. These two measures are designed to support employing small and medium enterprises and to improve business confidence.
The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses.
The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff.
The payment will be tax free.
This measure will benefit around 690,000 businesses employing around 7.8 million people.
Supporting apprentices and trainees
The government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.
Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
This measure will support up to 70,000 small businesses, employing around 117,000 apprentices.
Updated
1. Business investment
Delivering support for business investment the government is backing businesses to invest to help the economy withstand and recover from the economic impact of the coronavirus.
The two business investment measures in this package are designed to assist Australian businesses and economic growth in the short term, and encourage a stronger economic recovery following the coronavirus outbreak.
From today, the government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. In 2017-18 there were more than 360,000 businesses that benefited from the current instant asset write-off, claiming deductions to the value of over $4 billion.
The government is introducing a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
These two measures will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees.
Updated
And here is when it all starts flowing – remembering at this stage it is a 15 month program
Summary: Economic response to the #Coronavirus #auspol pic.twitter.com/tScA9vnATn
— Political Alert (@political_alert) March 12, 2020
Scott Morrison says the business package is aimed at businesses who employ workers, so not the sole traders.
Question: Will this starve off a recession? Is that the job?
Scott Morrison:
The job is what I outlined when I stood here with the Treasurer just 10 minutes ago. And that is to ensure that we keep Australians in jobs, that we keep businesses in business, and that we ensure the Australian economy is in a position to bounce back strongly on the other side.
That is the task. That’s what we’ve designed this package to do. If more is required, more will be done and we’ll watch that closely, like you do with any plan, and you get the best information and you continue to make good decisions.
I think we’ve made some very good decisions here and this boost, as I said, 1.2% of GDP, particularly in the initial phase, and even stronger than that, actually, this year, as you look at - it was $11 billion going out the door effectively by 30 June - that’s when it’s needed. This is very front-end-loaded.
Question:
Treasurer, the Reserve Bank governor had an urgent meeting with central bankers from around the world into the early hours of this morning. Do your concerns around the ineffectiveness of lower interest rates bear much on the size of the stimulus that you’re announcing today?
Josh Frydenberg:
Well, I think one important aspect of all of this is the alignment between monetary and fiscal policy.
That’s really important because, as the prime minister said, this is a $17.6 billion package, the bulk of which is going out the door before June 30, and we did welcome the fact that the interest rates were passed on by the banks.
I’ve spoken to Phil Lowe actually today. And he continues to watch very closely what’s happening with debt yields, what’s happening with bond yields, what’s happening with credit spreads, what’s happening with liquidity in global markets.
He’s made some comments about that and obviously monetary policy is the remit of the independent Reserve Bank of Australia.
But I think it’s important to understand that this is very different to the GFC in a number of respects.
This is not a financial system problem. This is not a liquidity crisis. This is a health crisis. But one of the other differences is that with the GFC, there was a lot more room with monetary policy to respond.
This time, monetary policy globally is pretty much exhausted and we did see the Bank of England substantially reduce their rates down to, I think, 0.25% overnight. So it’s a different situation, but there is an alignment between this government and the Reserve Bank about getting money out the door to support jobs and growth.
That is an acknowledgement that the economy is in worse shape, globally, then when the GFC hit. So the reserve banks have done all they can do this time around. It’s pretty much up to governments now.
Updated
Question: Prime Minister, can you explain a little more about how this fund for tourism and other businesses work?
Scott Morrison:
This fund is one that we’ll have to work through with the states and territories.
I’m not saying that means it’s a dollar-for-dollar fund.
What I’m saying is that there’s a lot of work being done at the moment to identify those areas which are most critically impacted and, look, this is an unfolding story, day by day.
We’re obviously concerned about the impact in places like North Queensland, for example, and that’s why we’ve made the decisions on things like the marine park fees and things like that nature.
What we envisage is that the same type of assistance that you’ve seen provided in the most affected bushfire areas - and there is a range of grants and other payments that have been paid into those environments - in those circumstances, then we would look at how those same types of grants and supports could be provided into designated areas that are more affected as a result of this coronavirus.
Now, on top of that, as the Treasurer has said, there’s things like domestic tourism promotion and things of that nature and so far, at least in relation to bushfires, we’ve seen some positive results from that investment we did out of the national bushfire recovery fund.
So it is applying a similar type of process that you would see in a disaster recovery arrangement being applied in specific areas that are particularly affected.
That will make Queensland happy:
Scott Morrison:
The cash payments have two purposes. And they’re both important. Of course, those who received them - that is obviously a benefit to them.
But more importantly, frankly, it is about a cash injection into the Australian economy, which supports small businesses and supports medium businesses, so the cash payment works together with the cashflow support that we’re putting into small businesses, and that, in turn, supports the jobs, which means people can continue to participate positively in the economy and have greater confidence going forward.
Those household payments (for anyone who receives a government payment) will start flowing from 31 March.
Josh Frydenberg:
Yes. 6.5 million Australians will be getting a cheque for $750.
Now it’s not for us to tell those Australians how to spend their money but what we do know from experience is that they will spend that money and that money will encourage economic activity and the more economic activity that we see through the June quarter, in particular, will be important, because in the June quarter, just as we’ve seen in the March quarter, the spread of the coronavirus has had an impact across the economy.
It’s disrupted end-to-end supply chains. It’s obviously impacted on the tourism sector, on the international education sector, and more broadly.
So raising the rate of say something like Newstart is GOOD for the economy? WHO KNEW
Updated
The $17.6bn stimulus package revealed by the Australian government this morning has failed to stem losses on the stock exchange, with shares continuing to fall as prime minister Scott Morrison and treasurer Josh Frydenberg detailed the measures.
A market that had fallen by 2% before Morrison began speaking at about 10.35am fell further to be off by almost 3% by 10.50am.
Updated
Anne Ruston’s office has released the information on the deeming rates:
About 900,000 Australians will see an increase to their fortnightly social security payments following the Morrison government’s decision to reduce deeming rates in response to changing economic conditions.
Minister for Families and Social Services Anne Ruston said this was an important change for the 565,000 age pensioners and 323,000 other payment recipients with financial assets who were affected by deeming rates.
‘The government is absolutely committed to ensuring the deeming rate is fair and is a reasonable reflection of the state of the market,’ Minister Ruston said.
‘The lower deeming rate will be cut from 1.0 per cent to 0.5 per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples.
‘The upper rate, which only impacts about 40 per cent of payment recipients with deemed assets, will decrease from 3.0 per cent to 2.5 per cent.
‘Through this change and my July 2019 cut to deeming rates the government has boosted income support payments by more than $1.2 billion to ensure Australians with cash assets who rely on social security can maintain their quality of life.’
Under the new rates payment recipients whose income is assessed using deeming could receive up to $62 a fortnight for couples, $1,612 extra a year, and up to $50 a fortnight for singles, $1,300 a year.
On average, affected age pensioners would receive an additional $8.42 a fortnight, $219 a year. The extra money will start flowing through into people’s bank accounts from 1 May.
Updated
Question: How do you know people will spend this payment?
Scott Morrison:
I believe their common sense has demonstrated in the wake and in response to previous situations like this that it speaks for itself.
The advice that we have on this has been proven by these experiences in the past.
I think what’s important is Australians go about their business – as Australians go about their business – is that they know, and they can see through what we’ve announced today, that this is a comprehensive, a well-thought-through, a well-targeted plan, which is designed to support the Australian economy and jobs and businesses through the difficult months ahead.
And in addition, the health plan that we’ve announced, and the support we’re providing to the states so people can go about their lives in response to the coronavirus, can give them that confidence.
This is a very clear plan to see us through, and the plan is based on Australians also working together.
We all have a role to play, whether it’s the commonwealth government – I’m looking forward to discussing these measures with the states tomorrow, and looking forward to their responses, as to what they would do in addition to this, with this information, they can now add to this with their own plans.
But the health side of this is also critically important. The health plan, working together with the economic plan, I think, can give Australians the confidence they’re seeking.
Updated
Question: Prime Minister, the budget now is obviously back in the red. What’s your promise on a surplus? When will Australia see one?
Scott Morrison: (answering with “why my stimulus, rather than the one I have spent a decade bagging Labor on)
We’ll update the budget when it’s handed down in a couple of months’ time.
... The budget will obviously be updated in May. And what we need to look carefully at over the next few years is how the broader global impacts will impact on the Australian economy out over the next three or four years.
But importantly, these measures are designed to ensure that at the end of this next financial year, then there is actually a positive impact that comes from the bringing forward of expenditure on accelerated depreciation.
We had positive impacts on the budget of 22-23 and $3.7 billion in 23-24. The way we’ve designed this stimulus is to ensure that it doesn’t have a fiscal hangover down the track, that it doesn’t bury the budget for a decade.
This is all designed to put the stimulus in now in a very efficient and effective way to deal with the problems that are here and now, and I’ve got to say problems that we know to be the issue here in Australia.
We’re not looking to cut and paste from people’s problems in other economies. This is based on our diagnosis of what is happening in the Australian economy, and the best way to deal with that.
Updated
Question: Will this package be enough to save the nation?
Scott Morrison:
We have worked carefully, to make sure that we have got a proportionate response here to meet the challenge.
Now, this is, as I said, 1.2% of GDP. To give you some comparison, when the initial stimulus was done for the GFC many years ago, those payments equated to some 0.88% of GDP in that package which was, as you know, supported by the Coalition, and that used similar measures - payments through the payment system.
That was 0.88% of GDP. The difference with this package is - A - about $3 out of $4 of what’s going into this is actually going into business cashflow, it’s going into keeping people in work.
It’s going into ensuring that investment continues to be made in the economy, with purchasing of new equipment and the wheels of the economy turning.
This is, I think, a key difference - is that we understand that, for the Australian economy to continue to move forward, businesses need to continue to go forward and do what they do each day, but that also requires the support of a demand stimulus as well, that is effectively and very efficiently delivered, and that’s what the $4.6 billion payment is doing - sorry,$4.7 billion payment is doing.
And it’s going through to those people, which we know from past experience are most likely to churn that into the economy quite quickly.
There will also be a ‘coronavirus fund’ established.
Josh Frydenberg:
A coronavirus fund is being established designed to target those areas and provide assistance that are most heavily by the spread of the virus. It initially will be a $1 billion fund.
This will include the waiver of certain fees and charges for tourism businesses operating in Commonwealth National Parks, and the Great Barrier Reef Marine Park, increasing domestic tourism promotion, and additional assistance through Austrade to address supply chain breakdowns.
Why those individuals? Because the government knows that they are the ones most likely to spend the money they receive, almost immediately. It is proven time and time again. It is one of the biggest reasons advocates have pushed the government to increase Newstart – because that money would flow straight back into the economy.
Josh Frydenberg has a little bit more information on the welfare recipient payments:
The Government will also deliver a one-off stimulus payment to households with 6.5 million Australians receiving a payment of $750.
This includes recipients onNewstart, the disability support pension, carers’ allowance, youth allowance, veterans support payments, family tax benefits, the Commonwealth senior health card-holders and 2.4 million aged pensioners.
This one-off payment, which costs $4.8 billion, will flow automatically from 31 March and provide additional income to millions of Australians that will be spent across the economy.
As expected though, business is the biggest beneficiary of the immediate measures.
As Josh Frydenberg says:
The package is worth $17.6 billion, $11 billion of which will go out the door before June 30.
As the Prime Minister said, this is on top of the recent health package we announced of $2.4 billion in measures.
Importantly, $3 out of every $4 spent will go to backing business and keeping Australians in a job.
$3 out of $4 spent will go to backing business and keeping Australians in jobs.
Scott Morrison:
The Treasurer and I and the government want to be in the best possible position for our businesses, holding onto their employees, ensuring they’re continuing to train up, ensuring that they’re maintaining their investment plans because, on the other side, they’re going to do well, and we’re going to do everything we can to ensure they’re best positioned to bounce back strongly on the other side
The measures will expire on 30 June next year
“It does have a finite life, there is another side to going through this issue and it will be stronger on the other side, and the global economy will recover on the other side,” Morrison says.
Scott Morrison announces the waiting period will be waived for what is currently called the ‘sickness allowance’ (On March 20, it becomes the JobSeeker payment) for casuals who have to self-isolate
Here’s something I prepared earlier (because honestly it made the most sense)
Because it is probably about to become important for many casuals, current sickness allowance (which is means tested) is:
— Amy Remeikis (@AmyRemeikis) March 11, 2020
Single, no kids - $559/fortnight
Single, w kids - 604.70/fortnight
Single over 60 under pensions - $604.70/fortnight
Partnered – $504.70ea/fortnight
$750 payments for welfare recipients
Here we go:
Households will receive a stimulus payment of $750 across the full gambit of those who receive all sorts of benefit payments.
The biggest beneficiaries of that will be pensioners. They comprise around half of those who will receive those payments, but they also will be extended to those in family tax benefits, which obviously goes to those in earning households. And there will be a coronavirus regional and community fund.
So if you currently receive a welfare payment, you will receive a payment. We’ll bring you the details when we get them.
Scott Morrison:
This package over the course of the Budget and forward estimates will inject some $17.629 billion into the Australian economy in a series of measures which are designed to support cashflow, boost investment and provide immediate demand stimulus to the Australian economy.
More specifically, both this financial year and in the next two financial years, the gross impact of that stimulus is $22.9 billion.
That’s 1.2% of GDP. This is a significant investment. We have taken the decision to put this stimulus in place that has the obvious impact on the Budget outcome for 2019-20 and Australians understand that, Australians know that this needs to be the priority* and our government agrees with that priority and that’s why we’ve taken the decision to put these measures in place.
*This is Scott Morrison saying the surplus is dead and buried.
All up, over the next two financial years, the stimulus package will cost $22bn
The stimulus package is worth just under $18bn.
Scott Morrison:
We set this out very clearly two weeks ago when, as a government, I stood here in this courtyard and said we were preparing for pandemic.
Today, the World Health Organisation has had that declaration. We called that two weeks ago.
Back in January, we also called the coronavirus as an issue that warranted and needed our very careful attention and ever since that time, we have been preparing and responding with the travel bans and the other actions that the Government has taken.
But the fiscal stimulus that would be necessary, and is necessary, to deal with the economic challenges that the country will face in the months ahead has been an important part of our plan for Australia to move through the challenges of the coronavirus in the months ahead.
Scott Morrison addresses the media
It’s all about jobs, says Scott Morrison, as he launches into the government’s stimulus package announcement.
“Jobs provide people with choice, jobs are just so important,” he says.
Jobs are “so important” on how Australia deals with the “difficult months” ahead, he adds.
“It is a health crisis, but it is a health crisis with very significant economic impacts.”
As Mathias Cormann said earlier, (and as many of us had predicted, including all you good eggs BTL), you can ‘do the maths yourself’ and see the ‘back in black’ surplus is gone.
“Obviously we already were under significant pressure given the impact on revenue from the economic impact of the coronavirus, so this is obviously not going to be a surplus year in 2019-20,” Cormann said.
The stimulus package at this stage looks to be close to $20bn – Scott Morrison said this morning it would be about 1% of GDP – and over the next two financial years.
The government has also been at pains to say it supported the first stage of Kevin Rudd and Wayne Swan’s stimulus package, as it works to backtrack almost 10 years of criticism.
This may not be the only stimulus package we see yet - they have told us it is “scalable”
Katharine Murphy and Sarah Martin are both in the prime minister’s courtyard (which, as you know, is the most fancy and serious of press conference locations)
Scott Morrison went on an absolute media blitz this morning. Things are serious.
Good morning
Welcome to a special politics live.
Scott Morrison and Josh Frydenberg are about to announce the details of the government’s coronavirus economic response.
What we know
- the surplus is dead and buried
- Small and medium businesses will benefit in ways that get them to spend as much cash as possible and keep on workers
- Casual workers and pensioners will most likely receive a boost
Sarah Martin prepared this a littler earlier;
What we don’t know?
Almost everything else.
The prime minister is due to speak at 10.30 and we will bring you all the events live. He is also going to address the nation at 7pm.
Ready?
Too bad if you’re not.
