Calls for Scott Morrison to more than TRIPLE government’s coronavirus stimulus package to $60billion

Scott Morrison is being urged to ramp up his economic stimulus package to $60 billion to help Australia battle the coronavirus crisis.

The prime minister had earlier announced a $17.6 billion package of measures to help keep the economy afloat, but experts warned it does not go far enough.

It comes as the deadly respiratory disease continues to reek havoc on the global economy, with the number of known cases in Australia soaring to 227.

On Friday night, Wall Street experienced the worst trading since the disastrous 1987 financial crash – as the world tilts on the edge of a global recession.

The ASX 200 (pictured) is suffering a slump known as a ‘bear market’, which is when securities drop by 20 per cent or more

Council of Small Business ­Organisations Australia chief executive Peter Strong said the dire developments shows the government needs to more than triple its pledged cash. 

Poll

Is Australia doing enough to prevent the spread of CORONAVIRUS?

• Yes 217 votes
• No 578 votes

‘I think the rescue package will be a lot more and people should be open to it,’ he told the Australian. 

‘I think it will get up to $60bn and if it does that, Australia would be well ahead of the rest of the world.’

Experts suggested an economy financial crash could be worse than that experienced in the 1980s, or after 9/11.

University of Technology Sydney professor Warren Hogan explained: ‘This has all the hallmarks of the three major crashes of this century: the tech wreck, 9/11 and the GFC. 

‘The reality is that this shock is turning into a financial crisis.’

A woman is seen wearing a face mask on Friday (pictured) overlooking the Sydney Opera House, as the number of coronavirus cases in Australia reached 227

After a tumultuous week, the Australian share marked recovered on Friday, increasing by 4.4 per cent.

It came after the government’s announcement that mass gatherings, meaning those with 500 people or more, would be effectively banned from Monday. 

The government announced its economic stimulus plan on Thursday, revealing it planned to spend almost $20 billion propping up the economy.

What measures could stimulate economy?

Cash handouts to Newstart recipients and pensioners 

Cash to local councils to bring forward infrastructure projects 

Tax breaks for businesses buying assets such as machinery

Delay payroll tax paid by employers

Bring forward bushfire relief payments

Changes to Newstart to allow casual workers access to paid sick leave

Reduce deeming rates (so pensioners and veterans can receive more government money)

Pause in compulsory super payments 

Nearly $7 billion in tax-free cash will be given to small business bosses to keep  apprentices in jobs as part of the stimulus package, designed to prevent a recession sparked by the coronavirus crisis. 

It will also include a huge expansion of the instant assets write-off. 

Pensioners and people on welfare will also get a one-off cash injection of $500 in a bid to boost the economy, according to reports.

The Treasury expects the coronavirus, which has now infected 227 people in Australia, will see growth drop by 0.5 per cent the March quarter.

Economists said whether Australia avoids recession will be determined by the length of time coronavirus crisis continues. 

‘Our targeted stimulus package will focus on keeping Australians in jobs and keeping businesses in business so we can bounce back strongly,’ Mr Morrison said.

As part of the plan, the government will offer up to $7,000 each quarter for each apprentice employed by a small businesses.

A couple wear face masks in Sydney’s Circular Quay (pictured) on Saturday afternoon as Australia tries to contain the coronavirus outbreak

This will help small businesses, such as local building firms, retain existing apprentices and trainees.

CORONAVIRUS CASES IN AUSTRALIA: 227

New South Wales: 114

Victoria: 36

Queensland: 36

South Australia: 19

Western Australia: 17

Tasmania: 5

Northern Territory: 1 

Australian Capital Territory: 1 

TOTAL CASES:  227

DEAD: 3  

As well, they will be able to re-employ apprentices and trainees who lose positions because of any coronavirus downturn. 

The wage subsidy is worth about $1.3 billion.

Businesses with turnover under $50 million will have access to a tax-free payment of up to $25,000 to help boost cash flow.

Eligible businesses that withhold tax to the ATO on their employees’ wages will receive of 50 per cent of the amount withheld, up to a maximum payment of $25,000. 

It’s estimated the measure will cost $6.7 billion over four years, benefiting almost 700,000 businesses and 7.8 million workers.

The government will also spend $700 million over four years to expand the instant asset write-off.

Currently, the instant asset write-off allows small businesses – those with an annual turnover of less than $10 million – to claim for new or second-hand equipment up to the cost of $30,000.

The threshold will be raised from $30,000 to $150,000 and expand to businesses with an annual turnover from $50 million to $500 million.

The Australian stock exchange is suffering a downturn thanks to the effects of the global coronavirus crisis (stock image)

It’s expected to drive interest in the purchases of cars, utes and trucks, harvesters and tradies’ equipment.

Prime Minister Scott Morrison (pictured) has pledged $17 billion to help the economy

Meanwhile, Mr Morrison has urged big business to support workers during the coronavirus crisis or risk brand damage.

‘I’d be encouraging employers to take a flexible and forward-leaning approach in supporting their employees during this process,’ he told reporters in Canberra. 

Opposition Leader Anthony Albanese said Labor would support any necessary funding for the virus response.

‘The cost of inaction will be far greater than the cost of action,’ he said.

Mr Albanese said workforce issues would have to be solved, particularly for health sector staff.

Health Minister Greg Hunt, Australian Prime Minister Scott Morrison and Australia’s Chief Medical Officer Professor Brendan Murphy (pictured, left to right) speak on Wednesday

 

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