Today, on 22nd March 2020, Australia announced another massive stimulus package of A$66 billion ($38.2 billion) which dwarfs the first one. Previously, A$17.6 billion stimulus package was announced on March 12. The most vulnerable are given the most priority in this stimulus package.
Business from small to medium to large are struggling as a result of lack of confidence in the market. Thanks to Coronavirus, there are fears of economic recession and Australian government is doing everything to stop that from happening. PM declared this Coronavirus event as once in 100 years type of event. Scott Morrison and team is trying his best to support businesses and this new support package is another effort to do so.
Firms will get 100% of the tax they withhold from their employees’ salary and wages, with a minimum payment of A$20,000 and maximum support of A$100,000.
A$66 billion in stimulus for the coronavirus-stricken economy, including cash payments of as much as A$100,000 to small businesses, in a second package. This is all in effort to prevent the recession and protect the workforce especially those who may loose their jobs as the businesses suffer.
The plan will provide A$25.2 billion in support to businesses and not-for-profit charities. It is not clear yet if it is for all types of charities or any particular types of charities. It will also partially guarantee loans to support A$40 billion in lending to small and medium-sized firms. Unemployment benefits will double. Some sole traders who are suffering the losses (loss of 20% of their income) and some individuals will be allowed to take money out from their super (pension savings) with $10K this year and $10K next year.
This is a crisis situation not just in Australia but around the world. To protect the economy, individuals and businesses further support might be coming soon. It has been made clear by PM Scott Morrison that this second stimulus package is not the final one, and another one may be on the tables. This is in fears of another recession since 1991.
The Reserve Bank of Australia cut interest rates to a record 0.25% on Thursday and will aim to keep three-year government bond yields at the same level.
The coronavirus cases in Australia reached 11,00 as of March 22. The effort is to flatten the curve.
The ignorant people are still going to crowded places, pubs and clubs to pass time completely ignoring the fact that this pandemic can take create a very bad scene never seen before we don’t be very very careful. Every rule of social distancing is made to flatten the curve but some are completely ignoring it.
If the situation doesn’t get under control soon, there will be thousands of victims of coronavirus (as predicted by the experts), our medical system will be tested with demand going way above the supply or current facilities, people will loose their jobs, business will go bankrupt and there may be complete curfew where no one will be officially allowed to go out on the streets. So, it is in best to follow the guidelines to avoid the worst that is yet to come.