A Message From Australia's Treasurer, Hon. Josh Frydenberg On Update Of Australia's Finance on Coronavirus COVID-19

This week the International Monetary Fund forecast that coronavirus would see the global economy contract by around 3% this calendar year.

By comparison, during the Global Financial Crisis the global economy contracted by only 0.1%.

Australia is not immune from the major impact coronavirus is having on the world’s economy.

However, we can cushion the blow and bounce back stronger on the other side.

Australia entered this crisis in a position of economic strength:

• Since 2013, more than 1.5 million jobs have been created.
• Last year, for the first time in eleven years, Australia’s Budget returned to balance.
• Last week, our AAA credit rating was reaffirmed.

From our position of economic strength we can deliver the largest economic lifeline in our history.

We know it is businesses, not government, that create jobs.

That’s why we’re supporting businesses through our JobKeeper Program.

JobKeeper will support around six million workers over six months, with payments of $1,500 per fortnight, per eligible employee.

So far, over 800,000 businesses have registered.

JobKeeper is available to companies, partnerships, trusts, sole traders and not-for-profits. 

It covers full and part-time workers and casuals who have been with their employer for 12 months.

Further measures that will help businesses through this crisis include:

• Payments up to $100,000 (for businesses with annual turnover up to $50 million).
• Increasing the instant asset write-off from $30,000 to $150,000 (for businesses with annual turnover up to $500 million).
• A 50% accelerated depreciation deduction (for businesses with annual turnover up to $500 million). 
• A 50% wage subsidy for apprentices and trainees (in businesses with up to 20 employees). 
• A new Coronavirus SME Guarantee Scheme, where the Government will guarantee 50% of new loans (for businesses with an annual turnover up to $50 million).

Our Government is focussed on saving lives, as well as livelihoods.

We are determined to keep workers in jobs and businesses in business, so Australia can bounce back strongly in the recovery phase.

For more information about JobKeeper and other measures, visit: www.treasury.gov.au

Regards,

Josh Frydenberg
Treasurer