covid-19: stimulus and re-opening of the economy · 2020-06-19 · may 25, 2020 3 economic...

Craig James, Chief Economist Twitter: @CommSec IMPORTANT INFORMATION AND DISCLAIMER FOR RETAIL CLIENTS The Economic Insights Series provides general market-related commentary on Australian macroeconomic themes that have been selected for coverage by the Commonwealth Securities Limited (CommSec) Chief Economist. Economic Insights are not intended to be investment research reports. This report has been prepared without taking into account your objectives, financial situation or needs. It is not to be construed as a solicitation or an offer to buy or sell any securities or financial instruments, or as a recommendation and/or investment advice. Before acting on the information in this report, you should consider the appropriateness and suitability of the information, having regard to your own objectives, financial situation and needs and, if necessary, seek appropriate professional of financial advice. CommSec believes that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made based on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this report. Any opinions, conclusions or recommendations set forth in this report are subject to change without notice and may differ or be contrary to the opinions, conclusions or recommendations expressed by any other member of the Commonwealth Bank of Australia group of companies. CommSec is under no obligation to, and does not, update or keep current the information contained in this report. Neither Commonwealth Bank of Australia nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this report. All material presented in this report, unless specifically indicated otherwise, is under copyright of CommSec. This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, a wholly owned but not guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. This report is not directed to, nor intended for distribution to or use by, any person or entity who is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or that would subject any entity within the Commonwealth Bank group of companies to any registration or licensing requirement within such jurisdiction.

Economics | May 25 2020

COVID-19: Stimulus and re-opening of the economy Economic trends On April 20 and May 7 CommSec outlined the stimulus measures provided by Federal, State and Territory

governments to support businesses and individuals deal with the consequences of the COVID-19 coronavirus. On May 7 CommSec also highlighted the plans outlined by the State and Territory governments to re-open their economies. This report updates the information.

Stimulus and support measures: Federal, State and Territory Governments have committed $285 billion or 14.3 per cent of GDP in support and stimulus measures in the wake of COVID-19.

Government decisions on easing lockdown restrictions have implications for all sectors.

What does it all mean? Australia has made good progress in stopping the spread of the COVID-19 virus. So consideration is now firmly

focussed on re-opening the economy. The health risks are easing but the economic risks are rising. So it is a case of finding some balance.

The COVID-19 cases may lift again as the economy re-starts, but the aim is to keep the process manageable. Certainly the facilities and procedures are now in place to deal with any modest lift in cases.

The re-start timetable varies across states and territories. The number of active cases is zero in Northern Territory, ACT and South Australia. Western Australia and Queensland are approaching zero. NSW and Victoria have a bit further to go. But importantly there is no single road map to follow.

JobKeeper revised On Friday, May 22 Federal Treasury and the Australian Tax Office revised down the expected cost of the

JobKeeper wage subsidy programme from $130 billion to $70 billion: “The difference between Treasury’s estimates at the time and the number of employees now accessing the JobKeeper program partly reflects the level and impact of health restrictions not having been as severe as expected and their imposition not having been maintained for as long as expected at the time.”

There were also reporting errors. “The most common error was that instead of reporting the number of employees they expected to be eligible, they reported the amount of assistance they expected to receive. For example, over 500 businesses with ‘1’ eligible employee reported a figure of ‘1,500’ (which is the amount of JobKeeper payment they would expect to receive for each fortnight for that employee).”

The downward revision in the cost of JobKeeper is very much good news. Support has been provided to businesses and employees but the worst-case scenario was avoided.

When JobKeeper was conceived, COVID-19 cases were increasing by around 300 per day, peaking near 450. Now cases are around 5-10 a day.

Active cases soared to around 5,000. Now active cases

May 25, 2020 2

Economic Insights. COVID-19: Stimulus and re-opening of the economy

are nearing 500.

Given that the worst case scenario was avoided, the Government has more options to provide stimulus or support should it be necessary.

The re-booting of Australia Guidelines for COVIDsafe workplaces and activities are available. And the information and guidelines will be

expanded over time.

https://www.safeworkaustralia.gov.au/covid-19-information-workplaces

In the transition to lockdown, there were limits imposed on groups of more than 500 people, and then this was tightened to groups of 10 and then to groups of 2 (numbers varied across states and territories).

On May 5, The Prime Ministers of Australia and New Zealand agreed to commence work on a trans-Tasman COVID-safe travel zone – easing travel restrictions between Australia and New Zealand.

Also on May 5, “National Cabinet agreed to establish a three step framework to gradually remove baseline restrictions to enable Australians to live in a COVID-19 safe economy. Details will be determined by National Cabinet on Friday 8 May 2020.

Individual states and territories will determine the timeframe for graduating between steps and individual restrictions to remove. This reflects the fact that states and territories are at different stages of the pandemic response, with 6 of 8 states and territories now recording multiple zero case days.

National Cabinet noted that the Northern Territory has announced that by 5 June 2020, it will be able to remove many restrictions, while maintaining social distancing, hygiene and travel restrictions.”

On May 8 National Cabinet outlined a three stage process for opening the economy. The Prime Minister said

“Step 1 will focus on carefully reopening the economy, and giving Australians opportunities to return to work and social activities, including gatherings of up to 10 people, up to 5 visitors in the family home and some local and regional travel

Step 2 builds on this with gatherings of up to 20, and more businesses reopening, including gyms, beauty services and entertainment venues like galleries and cinemas.

Step 3 will see a transition to COVID safe ways of living and working, with gatherings of up to 100 people permitted. Arrangements under step 3 will be the ‘new normal’ while the virus remains a threat. International travel and mass gatherings over 100 people will remain restricted.”

https://www.pm.gov.au/sites/default/files/files/covid-safe-australia-roadmap.pdf

https://www.pm.gov.au/sites/default/files/files/three-step-framework-covidsafe-australia.pdf

What has each state and economy announced so far? NSW

On April 28, the Premier announced the following: “From Friday, 1 May up to two adults and their dependent children will be allowed to visit another household.

We will see a return of face-to-face teaching from 11 May, and then will consider accelerating a full return to school as soon as possible.

There have never been restrictions in NSW on what people can and cannot buy, however there may be increased retail activity, with some businesses choosing to re-open. It is important these shops maintain social distancing and hygiene requirements.”

The full list of the rules, as they were at that time, is here:

https://www.nsw.gov.au/covid-19/what-you-can-and-cant-do-under-rules

On May 3, the Treasurer said agents and vendors able to hold traditional property inspections and on-site auctions from May 9.

On May 10, the Premier announced that gatherings of 10 people will be permitted from May 15.

On May 19 it was announced that students would return to schools full-time on May 25.

On May 20, the Premier said intra-state travel restrictions would be lifted from June 1, 2020. Museums, galleries and libraries will re-open the

May 25, 2020 3


same day.

On May 22, the Premier announced that from June 1 it will “allow pubs, clubs, cafes and restaurants to have up to 50 customers.”

Victoria

On May 1, Premier Daniel Andrews said:

“The more tests we can get done in the lead-up to 11 May, the more options we will have to potentially ease some of the rules,” he said.

“If we are going to change those settings, then we need to be really clear on how much virus is out there in the Victorian community that we didn’t previously know about.”

Mr Andrews is aiming to complete 100,000 COVID-19 tests before May 11 to allow an easing of restrictions.

On May 11, Premier announced easing of restrictions from midnight May 12 to allow maximum gathering of up to ten outdoors and having up to five visitors in your home. Walking groups, fishing, hiking and golf also permitted.

On May 17 the Premier announced “From 1 June – cafes, restaurants and pubs will be able to reopen their doors to serve meals to up to 20 customers at a time per enclosed space. From 22 June – this could increase to up to 50 patrons. During the second half of July, up to 100.”

On May 24 the Premier announced “from Tuesday – and in line with the return to face-to-face learning in school – outdoor playgrounds, skate parks and outdoor communal gym equipment will reopen.

Then, from 11:59pm on 31 May, you’ll be able to have a total of 20 people in your home. For a family of five, that means 15 visitors. Outdoor gatherings can also increase to 20.

Overnight stays can resume at private residences. And importantly, for our tourism industry, so can overnight stays in accommodation.

In good news for those itching to pitch their tent, this will also apply to campgrounds and caravan parks – but not with communal facilities like kitchens or bathrooms so we can stay safe.

Limits on our most significant ceremonies will be lifted, with up to 20 people allowed at weddings – plus the celebrant and couple – and up to 50 people allowed at a funeral, in addition to those required to conduct the ceremony. Up to 20 will be allowed at other religious ceremonies, in addition to those required to perform the service.

Libraries, youth centres and other community facilities will be able to open with no more than 20 people in a single area, plus those needed to operate the space. That means men’s sheds and arts and crafts classes can resume.

From 11:59pm on 31 May, entertainment and cultural venues like galleries, museums, drive-in cinemas and historic sites will be able to open their doors, alongside zoos and outdoor amusement parks. Physical distancing and a limit of up to 20 patrons per space will apply, and indoor venues will be required to keep customer contact details.

Swimming pools will also open with limits of 20 people and additional safety requirements in place. Community sporting activities will also be permitted with up to 20 people in undivided spaces, provided the sport is outdoors, non-competition, non-contact, and people are able to play 1.5 metres apart. Restrictions on professional sport will remain unchanged.

Beauty and personal care services like nail salons, spas, tattoo parlours will be able to open with up to 20 customers per space – with customer contact details required to be kept.

Auctions and open for inspections will also be subject to the 20-person limit – plus those required to conduct the activity – with agents also required to keep the contact details of everyone who attends.

Non-food and drink market stalls will also be able to open from 11:59pm on 31 May.

If community transmission rates continue to remain low and testing rates continue to remain high, we will look to further relax restrictions from 22 June.

From that date, indoor fitness and recreation facilities will open with up to 20 people per space and up to 10 people per group or activity at any one time.

Up to 50 people will be permitted in restaurants, cafes, galleries, museums and for the first time, cinemas and theatres. And for those eager to hit the slopes, the ski season will open slightly later this year on 22 June.

https://www.premier.vic.gov.au/statement-from-the-premier-40/

Queensland

On April 26 Premier Annastacia Palaszczuk announced:

“From 11.59pm Friday, May 1, Queenslanders will be able to leave their homes for recreation and the distance they can travel has been extended.

May 25, 2020 4


For example, Queenslanders will be able to enjoy some relief from stay-at-home rules and:

Go for a drive;

Ride a motorbike, jetski or boat for pleasure;

Have a picnic;

Visit a national park; and

Shop for non-essential items

But there are three conditions that apply linked to the above:

Social distancing and hygiene must be maintained

You have to stay within 50km of home and

Outings are limited to members of the same household or an individual and one friend.”

On May 1 Premier Annastacia Palaszczuk cleared the way for the NRL season to resume on May 28th, dependent on Chief Health Officer advice that the league’s plan is workable, and the NRL’s assurance that players won’t break restrictions. The Premier said the decision gives clubs permission to travel across the Queensland border to play because they are working and because they are in quarantine. The Premier also said work was being done on other issues such as dining out.

On May 4, the Premier announced plans for schools

May 11: Kindy, Prep, Years 1, 11 and 12 return to learning at school

May 15: Assess state-wide response to easing of restrictions

May 25: Proposed re-opening to remaining students in remaining grades

On May 5 the Premier issued a media release noting that “Planning continues for the resumption of hospitality and tourism business activity.”

On May 8 the Premier maps road to easing restrictions allowing gatherings of up to 10 people from midnight May 15.

South Australia

On April 27 schools opened for Term 2 on the advice of the Chief Medical Officer.

On May 3 Premier Steven Marshall announced:

“To guide the delicate process of both continuing to move out of the COVID-19 health emergency and restore the social and economic health of the State, the Marshall Government has established a broad high-level transition team.

While maintaining the vigilance of our public health response, the highly credentialed Transition Committee will look at which restrictions should be eased and in what order, as we take the next steps to return the State’s economy and community way of life to the new normal.”

From May 22 cafes & restaurants can seat up to 20 people.

Western Australia

On April 26 Premier Mark McGowan and Health Minister Roger Cook announced an easing of restrictions:

“Indoor and outdoor gatherings for up to 10 people will be allowed including weddings, outdoor personal training, and open house or display village inspections

Easing of some of WA's stage 3 restrictions effective Monday, April 27 2020

Allows families and friends to interact more freely, with good social distancing

Schools opened for Term 2 on the advice of the Chief Medical Officer.”

“The changes, based on health advice, will mean indoor and outdoor non-work gatherings will be relaxed to enable for up to 10 persons, lifted from the two person only limit, following continued low number of new cases and the encouraging response to COVID-19 in WA.” “The new 10-person rule aligns WA with South Australia.”

May 10: The WA roadmap for easing COVID-19 restrictions

May 18: Groups of up to 20 people permitted

May 25, 2020 5


Tasmania

On May 1, Premier Peter Gutwein announced Additional North West COVID-19 measures to be lifted: “I am pleased to announce that the additional North West COVID-19 safety measures will be lifted from 12.00am this Monday, 4th May.”

The Premier said at the same time “The Government will make decisions about statewide restrictions in the lead up to 15th May.”

On May 8 Premier releases Tasmania’s Roadmap to Recovery. From May 11 relaxation on visits to national parks, aged care, TAFE campuses.

Stage one restrictions ease from May 18. Gatherings increasing to 10 people (not including event or premises staff) for indoor and outdoor gatherings.

ACT

On May 1 Chief Minister Andrew Barr announced:

“…reasons for Canberrans to be outside their family home will be broadened from this weekend, allowing Canberrans to leave their home for non-essential shopping purposes.

This measure will support retail stores as they re-open (whilst maintaining appropriate physical distancing inside their stores). Many retailers voluntarily closed their doors to support community efforts to suppress the virus. Soon many will re-open and the community is encouraged to support them whilst maintaining physical distancing.

Restrictions on gatherings inside the family home will be relaxed to allow families to visit each other with two adults plus children able to visit outside of those who ordinarily live in a property.

With travel restrictions eased in NSW, Canberrans should only travel outside of the Canberra region to visit family and friends in small groups while maintaining physical distancing. As much as possible, travel outside of the Canberra region should be carefully considered, as someone bringing the virus into the Territory from interstate remains one of the biggest threats to the ACT.”

On schools, the Chief Minister said “we are preparing to move to face-to-face delivery during Term 2 if the circumstances allow us to do that sensibly.”

From midnight May 8 gatherings, whether they are indoor, or outdoor, should be no greater than ten people.

From midnight May 15 restrictions were eased includes lifting restrictions on cafes and restaurants, allowing venues to seat up to 10 patrons at one time.

On May 20 the Chief Minister said that stage two restrictions will be eased from Friday May 29.

On 18 June, the Government will be providing an economic update to the Legislative Assembly.

Northern Territory

On April 27 Chief Minister Michael Gunner announced:

The Northern Territory Government will begin re-opening some parks from Noon on Friday 1 May.

The Chief Minister outlined a transition to a “new normal”:

“This transition has three parts:

Controlling the borders: to keep the Territory safe and to stop coronavirus from spreading, our borders will stay secured.

Rapid response: a “test, trace and trap” plan to contain any future outbreak, minimising the risk to the community.

The new normal: Territorians enjoying their lives while also adhering to social distancing, cleaning and hygiene protocols.”

On April 30 the Chief Minister outlined “The Territory’s Roadmap to the New Normal” (http://newsroom.nt.gov.au/mediaRelease/33205)

From 1 May, Stage One adjustments will commence. Stage two activities can commence from noon, Friday 15 May. And from noon, Friday 5 June, restrictions will be eased on further indoor activities. By 5 June all Territory businesses, services, facilities and organisations should have their own COVID-19 Safety Plan.

On May 5 Chief Minister Michael Gunner announced:

May 25, 2020 6


“The COVID-19 safety plan checklist for businesses and organisations as part of the Roadmap to the New Normal is now available.

Businesses and organisations seeking to re-open or expand operations as part of stage two of the Roadmap can begin submitting their checklist from today, ahead of opening on 15th May.”

What are the implications for investors? The focus now shifts from containment and suppression of the virus to rebooting the economy. The process will

understandably be long and staggered. The process will differ across states and territories. The process is not without risks. But the price of delaying the reboot too long is getting higher.

Governments now have the processes and infrastructure in place to deal with any lift in the number of virus cases. Businesses may need information on what constitutes a new acceleration phase for cases, so they can stay on top. A reacceleration of cases could prompt a reimposition of lockdown measures or a tightening of rules and regulations.

Investors will need to particularly stay on top of daily information of virus news to gauge implications for companies, sectors and the broader market.

Far from being negative, the under-estimation of the cost of JobKeeper gives the Federal Government flexibility to tinker with JobKeeper or other mechanisms to ensure all parts of the economy are fully supported, thus boosting recovery prospects.

Craig James, Chief Economist, CommSec Twitter: @CommSec

May 25, 2020 7


Addendum: Update of stimulus/support measures

Federal Government & Reserve Bank

March 12: First economic package $17.6 billion (support cash flow and investment spending of business and provide payments to vulnerable Australians)

March 19: Reserve Bank monetary package includes $90 billion three-year funding facility and $15 billion from the Government to improve access to finance.

March 22: Second package $66 billion (keep business in business and keep workers in jobs)

March 30: Third package $130 billion (includes new wage subsidy ‘JobKeeper’ program)

Also

March 18: $715 million airlines package

March 28: Regional Airlines Network Support $198 million

March 20: $444.6 million aged care support

April 12: $100 million Higher Education relief Package

April 13: $3 million support frontline health workers

April 16: $165 million for airlines to maintain critical air routes

April 28: $94.6 million support for zoos

May 1: $205 million for residential aged care providers

May 11: $650 million Regional Bushfire Recovery and Development Program

May 15: The $48.1 million Mental Health and Wellbeing Pandemic Plan

May 22: a $1.8 billion boost for road and community projects ($500 million Local Road and Community Infrastructure Program and the bringing forward of $1.3 billion of the 2020-21 Financial Assistance Grant)

On May 22: Federal Treasury and the Tax Office advised that the cost of the JobKeeper program will be closer to $70 billion than $130 billion. “The difference between Treasury’s estimates at the time and the number of employees now accessing the JobKeeper program partly reflects the level and impact of health restrictions not having been as severe as expected and their imposition not having been maintained for as long as expected at the time.”

https://treasury.gov.au/media-release/jobkeeper-update

NSW

March 17: $2.3 billion economic stimulus package ($1.6bn tax cuts, job creation; $700m for health)

March 27: 2nd stage economic package including $1 billion fund for jobs

Also

April 2: $750 million Small Business Support Fund (grants up to $10,000 for small business

April 7: $100 million to support health workers

April 9: $51 million free pre-school for six months

April 13: $440 million land tax break

April 15: $50 million fee waivers for trades and construction sector

April 17: $82 million for council childcare centres

April 20: Bushfire Industry Recovery Package

April 24: $73 million mental health workers to promote metal wellness

Apr 29: $250 million cleaners package for cleaning of public facilities

May 6: $9 million fast-tracked program of courts and corrections facility upgrades in regional NSW

May 8: new $15 million Streets as Shared Spaces program

May 11: $310 million in emergency drought relief

May 18: $8.6 million funding boost to the Patient Experience Program, part of the NSW Government’s $800 million investment to support the health system

May 19: projects in Blacktown and The Hills will be supported by the government’s $70 million Accelerated Infrastructure Fund

May 20: Close to 1000 NSW sports projects share in $4.6 million in grants for purchasing equipment, improving facilities

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May 22: Fast-tracking 24 priority projects, “that could inject more than $5.37 billion into the state’s economy.”

Victoria

March 21: $1.7 billion Economic Survival package (includes $500m Business Support Fund)

April 1: $1.3 billion to create 4,000 ICU beds, equipment, capital works and training

Also

March 15: $100 million for elective surgery

March 19: $437 million health funding

April 5: $45 million for sessional kindergartens

April 15: $500 million support for residential & commercial tenancies

April 16: $24.5 million emergency funding

April 17: $3 million family violence

April 17: $260.8 million emergency funding for TAFE

Apr 21: $4.7million regional newspapers

April 23: Extend First Home Owner grants regional Victoria

April 23: $77.5 million over 2 years for foster & kinship cases

April 26: $16.8 million Arts survival package

April 29: $45 million International Student Emergency Relief Fund

April 30: On-Farm Drought Resilience Grant Program

May 1: Expand criteria for Economic Survival package

May 3: $14 million for zoos

May 3: $40 million from the Business Support Fund will be available to licenced venues

May 5: $491 million in tax relief, and freeze a host of fees, charges and levies

May 18: first part of Building Works package, which will provide $2.7 billion towards shovel-ready projects. The package will create 3,700 direct jobs.

May 19: $48.4 million in water projects as part $2.7 billion Building Works package

May 19: $350m Victorian Higher Education State Investment Fund to support universities with capital works, applied research and research partnerships

May 22: The “Earth Resources Regulation will defer the collection of rent and annual fees worth $3.5 million until January 2021 to aid the immediate cashflow of mines, quarries and exploration companies.”

Queensland

March 24: $4 billion package (support health, jobs, households & business)

Also

March 2: payroll tax deferral

March 17: $500 million in loans to support workers; extend payroll tax deferral

March 25: $24.7 million support for vulnerable

April 6: $17.5 million to help health workers self-isolate

April 8: $5.5 million domestic violence

April 12: $17 million relief package (including free community kindergarten)

April 14: $28 million for community based health service groups

April 18: Government offers $200 million for national support package for Virgin Airlines

April 23: $4.5 million for Legacy & Lifeline

April 24: $2.3 million port businesses in far north

April 24: $12 million resilient infrastructure

April 25: $54.5 million transport operators package

April 28: $33.8 million waived in land rent for farmers, tourism &clubs for six months

May 5: The $1 billion Pacific Motorway upgrade from Varsity Lakes to Tugun has been fast-tracked to bust congestion and create jobs to help in the recovery from COVID-19.

May 25, 2020 9


May 7: businesses employing Queenslanders will not pay payroll tax on the Federal Government’s JobKeeper payments.

May 11: An additional $500 million in funding secured for interest free loans for COVID19-affected businesses, doubling the initial commitment.

May 18: Resources Community Infrastructure Fund to deliver $100 million over three years towards projects to improve economic and social infrastructure in Queensland’s resources communities.

May 19: Unite and Recover strategy includes $400 million roads package, $200 million council works program’ $100 million small business package

May 19: an extra $50 million to help support tourism businesses, theme and animal parks.

South Australia

March 11: $350 million package including bringing forward infrastructure projects

March 26: Second package $650 million Jobs Rescue Package

Also

March 16: $50 million for local jobs

March 19: $12 million skills package

March 29: Fast tracking infrastructure

April 3: Fee relief tourism businesses; Defer licence fees for minerals & petroleum sector

April 4: $16 million for training providers

April 5: $1.6 million for vulnerable

April 9: $190 million funded from Jobs Rescue Package ($10,000 grants for small business)

April 10: $5.2 million for taxi industry

April 15: $6 million for sporting clubs sporting facilities

April 21: $13.8 million for international education sector

April 23: Almost 500 schools and preschools will receive grants to undertake priority maintenance work, as part of a $32 million State Government economic stimulus package

April 24: $50 million in land tax relief

April 29: $3.35 million in grants for community organisations

April 30: $2.4 million for domestic violence

May 1: $1.8 million for bushfire affected businesses

May 15: The first round of the $400,000 Wildlife Recovery Fund open for applicants

May 19: new $500,000 eCommerce Accelerator Program (eCAP)

May 21: Public housing work: almost $6 million in works are set to be completed next month, with the remaining $4 million to be spent early in the new financial year.

Western Australia

March 16: $607 million supports households and small business

March 31: $1 billion economic & health relief package (includes $500m health & front line service delivery)

Also

March 30: $159 million rent relief for small business

April 8: $91.2 million police package

April 23: $24.5 million construction workforce

April 23: $154.5 million tenants, landlords & construction industry

April 30: Fast tracking of major projects

May 13: $14.4 million package to support tourism industry and jobs ($10.4m for tourism) “On top of McGowan Government's $1.8 billion stimulus and relief package invested so far in response to COVID-19.”

May 20: planning reform package includes 26 key reform items

Tasmania

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March 18: $420 million Support & Stimulus package

March 26: $565 million Social & Economic Support package

Also

April 8: Round 2 of emergency grants open

April 11: Boosted Digital Ready for Business grants to $400,000

April 16: school levies refunded

April 22: $3 million temporary visa holders

April 22: freeze on rent increases for residential tenants

April 30: additional $10 million to the small business grants program and a further $10 million in hardship grants

April 30: waive rego fees for tax operators for !2 months

May 2: $1.4 million for family violence

May 7: Update on Social and Economic Support Package, which totals around $1 billion.

May 15: Premier “tasked Treasury to do an immediate review of the State’s $3.7 billion infrastructure program and identify projects that can be brought forward and commenced swiftly.”

ACT

March 20: $137 million first phase includes rates rebate and commercial rates relief

April 2: $214 million second phase of $351 million Economic Survival package

April 22: Fast tracked projects

April 30: More fast tracked projects. Total $25 million to date

May 20: Levy reduction for commercial property owners

Northern Territory

March 18: $60 million economic stimulus package includes home & business improvement

March 24: $65 million (includes $50 million Small Business Survival plan) as part of Jobs, Rescue & Recovery plan

April 8: $180 million Business Relief for Payroll, Power, Rent and Rates

April 16: second stage of Small Business survival plan (includes $20m for operational costs)

April 16: $30m home improvement plan doubled (NT Government says now investing $300 million to protect the economy and save jobs)

April 20: tax relief for hospitality industry and clubs

April 30: timetable to ease restrictions

May 6: one-off grants of up to $10,000 to NT childcare operators

May 9: $2 million support for aviation sector

May 17: $2 Million Immediate Tourism Resilience Plan (grants totalling $500,000 provided)

May 18: $1.3 million Sport and Active Recreation Sector Immediate Response and Resilience Package. Round 2 grants open

What is the size of the stimulus?

The estimated size of all the measures announced to date has been estimated near $285 billion. The estimate will need to be reviewed to ensure all the announcements represent ‘new’ money and weren’t covered in prior releases. Some of the measures are not costed. The list may not be exhaustive.

covid-19: stimulus and re-opening of the economy · 2020-06-19 · may 25, 2020 3 economic...

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