Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Hansard source

Firstly, I want to thank all of the members who have contributed to this debate and contributed in such a fine way. As the Treasurer outlined, these are unprecedented times. Australia's not faced a crisis like this before, and strong and decisive action is required to protect Australians and the economy from the coronavirus. The measures contained in the Coronavirus Economic Response Package Omnibus Bill 2020 and the other bills in this package provide critical support for the Australian economy to protect jobs and put Australia in the best possible position to bounce back strongly after this crisis. The measures include additional household income to give a boost to those that need it most and business support that will help see businesses through this tough time and keep more people in jobs.

Schedule 1 to the bill supports business investment by increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to businesses with an aggregate annual turnover of less than $500 million, up from $50 million. The enhanced instant asset write-off applies to assets first used or installed ready for use in the period from 12 March 2020 to 30 June 2020.

Schedule 2 to the bill supports business investment by enabling businesses with aggregated turnover below $500 million to bring forward deductions of 50 per cent of the cost of certain assets that they have committed to purchase after 12 March 2020, if they are first used or installed by 30 June 2021.

Schedule 3 to the bill will support employers to manage cash flow challenges and help businesses and not-for-profits, including charities, importantly, retain their employees and keep operating by providing a cash flow boost payment. The bill will provide at least $20,000 and up to $100,000 to back eligible businesses and not-for-profits, again, including charities. This will benefit around 690,000 businesses employing around 7.8 million Australians. Around 30,000 not-for-profits—again, important to note—will also benefit. These businesses will be able to keep selling their products, and not-for-profits will be able to keep delivering their important services to the Australian community.

Schedule 4 to the bill provides for the payment of the first economic support payment of $750 to approximately 6.6 million social security and veterans income support recipients, farm household allowance recipients, family tax benefit recipients and holders of a pensioner concession card, Commonwealth seniors health card or Commonwealth gold card. This schedule also provides for the payment of a second economic support payment of $750 to social security and veterans income support recipients, family tax benefit recipients and holders of a pensioner concession card, Commonwealth seniors health card or Commonwealth gold card who receive a qualifying payment or hold a qualifying concession card on 10 July 2020. This second payment will not be paid to a person who receives on 10 July 2020 the new coronavirus supplement established by this bill.

Schedule 5 to the bill amends the Biosecurity Act 2015 to ensure that Australia continues to have a world-class biosecurity system that is flexible and responsive to public health threats, such as those obviously posed by the coronavirus.

Schedule 6 to the bill makes amendments to the Great Barrier Reef Marine Park Regulations 2019 to temporarily waive the environmental management charge. This forms part of the $1 billion allocation the government has set aside to support regions and communities that have been disproportionately affected by the economic impacts of the coronavirus.

Schedule 7 to the bill provides assistance for up to 70,000 small businesses, including those using a group training organisation, to support the retention of around 117,000 apprentices and trainees. It also provides a $715 million relief package to help put Australia's aviation industry in the best possible position to deal with the coronavirus outbreak.

Schedule 8 to the bill creates a temporary instrument-making power in the Corporations Act 2001 for the Treasurer to grant time limited relief from regulatory requirements where these would interfere with the ability of companies to manage their business through the impacts of the coronavirus. This will be used judiciously and only in cases of absolute need.

Schedule 9 provides flexibility for approved childcare providers and families who depend on the childcare subsidy to manage absences and be able to continue to access care for their children.

Schedule 10 to the bill reduces the superannuation minimum drawdown rates for the 2019-20 income year by 50 per cent. These rates prescribe the amount that an individual in the retirement phase must withdraw from an account based pension or similar product, depending on their age.

Schedule 11 provides temporary financial support through a COVID-19 supplement of $550 per fortnight to new and existing income support recipients receiving a working age payment. It will also provide streamlined access and extended eligibility to income support for an initial period of six months from 14 April 2020. As has been noted, this may be extended. The schedule also creates a new category of crisis payment and delays commencement of the simplifying income reporting act for up to a year.

Schedule 12 to the bill provides a safety net for businesses to allow them to get through a temporary period of insolvency and to recover when economic growth picks up.

Schedule 13 to the bill establishes a new temporary compassionate ground of early release of superannuation, allowing impacted individuals to access up to $10,000 of their superannuation tax free in 2019-20 and up to a further $10,000 tax free in 2020-21. This initiative builds on existing provisions allowing early access to superannuation in the event of hardship or on compassionate grounds. It is estimated to put up to $27 billion of superannuation back into the pockets of working Australians.

Schedule 14 to the bill amends the Medicare Levy Act 1986 and the A New Tax New System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 to increase the Medicare levy low-income thresholds for singles, families and seniors, and of course pensioners, in line with increases in CPI.

Schedule 15 to the bill amends the Charter of Budget Honesty to delay the next Intergenerational report from 2020 to mid-2021 to ensure that there is adequate time to produce long-term projections that are again based on robust budget estimates.

Schedule 16 to the bill, finally, will allow responsible ministers to defer sunsetting dates. Over the coming months this parliament will, quite rightly, be focused on responding to the needs of the Australian community. During this time, a number of acts passed by this parliament and a large number of legislative instruments are scheduled to sunset. Where an act or legislative instrument is scheduled to sunset on or before 15 October 2020, the bill will allow the minister responsible for that act or instrument to defer the sunset day by up to six months. This will ensure that no gaps occur in our laws during this extraordinarily critical time.

At this time I would also like to table a correction to the explanatory memorandum, which corrects a typographical error. Finally, on behalf of the government I want to take this opportunity to thank the opposition, in particular, and, of course, members of the crossbench for their very constructive engagement on this legislation. I commend the bill to the House.

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