Business stimulus measures key to reducing economic impact of COVID-19

Supporting business cash flow and keeping people in employment are central to responding to the economic impact of the Coronavirus, and have been addressed in today’s economic stimulus package, according to the region’s peak business organisation, the Illawarra Business Chamber.

“The stimulus measures announced today will help businesses to keep operating without shedding staff or productive capacity. Business continuity will be critical to minimising the impact of COVID-19 on our economy in the months to come,” said Adam Zarth, Executive Director of the Illawarra Business Chamber.

The government’s Coronavirus response includes three business-specific measures that will enable businesses to support the economy and retain employees in the months ahead:

  • A tax-free cashflow boost of between $2,000 and $25,000 for businesses with a turnover of less than $50 million, to help pay wages, hire extra staff, or for investment,
  • Funding of up to $21,000 per apprentice or trainee, to help small businesses keep their employees in work, and
  • Raising the threshold for instant asset write offs from $30,000 to $150,000 and expanded to businesses with an annual turnover of up to $500 million, increased from $50 million.

“The Commonwealth is right to inject cash into the economy and encourage business investment at the current time,” said Mr Zarth.

“This response should help sustain economic activity through our region in response to COVID-19 and frankly against the compounding effects of the aftermath of the bushfire season.”

“Importantly, the social security measures announced will see cash being flushed into the economy in the form of one-off $750 payments, which will be particularly welcomed in the retail sector.”

“We’ve been concerned about the impact of casual workers who may be quarantined without pay, and so it makes sense that waiting times for them to access sickness payments have been abolished.”

“These measures are a welcome first response while we await the March quarter National Accounts which paint a clear picture of how COVID-19 has impacted the economy and will be released by the ABS in June,” said Mr Zarth.

/Public Release. View in full here.