Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

CORONAVIRUS ECONOMIC RESPONSE PACKAGE OMNIBUS BILL 2020

The Bills I introduce today implement the Government's package of measures responding to the economic impacts of the Coronavirus which combined, total $189 billion across the forward estimates, representing 9.7 per cent of annual GDP.

The Coronavirus Economic Response Package Omnibus Bill 2020, along with the other the Bills I am introducing today, provides critical support for the Australian economy and those in our community most affected by the global spread of the Coronavirus.

The measures contained in this package of Bills are designed to bolster domestic confidence and household consumption, reduce cash flow pressures for businesses and support investment to lift productivity and keep people in jobs.

The Package targets four key areas:

The measures in this package are temporary, targeted and proportionate to the challenge we face.

This is a decisive response to the economic challenges posed by the Coronavirus.

It will put Australia in the strongest possible position to secure our economy and return to strong and inclusive growth once the health challenge of the Coronavirus has been overcome.

Enhancing the Instant Asset Write Off

The Government will provide immediate additional support for business investment by enhancing the Instant Asset Write Off for small and medium-sized businesses.

The threshold for eligible assets will increase from $30,000 to $150,000, allowing businesses to immediately deduct purchases of eligible assets each costing less than $150,000. To be eligible, assets need to be first used or installed ready for use in the period between 12 March and 30 June 2020.

Access to the instant asset write-off will also be expanded during this period to include all businesses with an aggregated annual turnover of less than $500 million, up from $50 million. As a result, an additional 5,300 businesses which employ around 1.9 million Australians will be able to benefit from the instant asset write-off.

Backing business investment

We will provide support for business investment by allowing businesses with an annual aggregated turnover of less $500 million to access accelerated depreciation deductions.

Eligible businesses will be able to bring forward depreciation 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. Around 3.5 million businesses which employ 9.7 million people are eligible to benefit from this measure.

Boosting cash flow for employers

The Government will support employers to manage cash flow challenges and help businesses and not-for-profits, including charities, retain their employees and keep operating by providing a cash flow boost payment. This measure will provide at least $20,000 and up to $100,000 back to eligible businesses and not-for-profits (including charities).

This will benefit around 690,000 businesses employing around 7.8 million people. Around 30,000 not-for-profits will also benefit.

Stimulus payments to households to support growth

We will provide two rounds of Economic Support Payments. In each round, the payment will be $750 for each eligible individual.

The first Economic Support Payment will be made to certain recipients of social security and veterans' payments, Farm Household Allowance and holders of certain concession cards eligible in respect of a day in the test period 12 March 2020 to 13 April 2020, to assist them in a time of economic uncertainty during the Coronavirus outbreak.

The second round of Economic Support Payments will be delivered to a sub-cohort of those payment groups who received the first Economic Support Payment. This second payment will not be paid to recipients of the Coronavirus Supplement on the test date. All other payment groups who were eligible for the first payment will be eligible for the second Economic Support Payment providing they would ordinarily be residing in Australia in respect of the test date of 10 July 2020.

Improving our capacity to respond to biosecurity emergencies

We are amending the Biosecurity Act 2015 to allow for the Director of Human Biosecurity to delegate any or all of their functions or powers concerning human biosecurity control orders to senior executive officers of the Department of Health who are also human biosecurity officers.

This will ensure some of the Commonwealth's key powers for responding to biosecurity threats, including the human biosecurity control order, can be implemented in an efficient manner should it become necessary to use them. It is vitally important that we have a range of qualified medical personnel able to conduct administrative processes such as reviewing control orders, to ensure they are being used in a way that is proportionate to the public health risk.

Waiving environment management charge and national park entry fees

The Great Barrier Reef Marine Park Regulations 2019 will be amended to temporarily waive the Environmental Management Charge for the next nine months. This charge mainly applies to tourism activities and this waiver is intended to relieve cost pressures on tourist program operators in the Great Barrier Reef Marine Park.

A number of national park entry fees will also be waived administratively by the Director of National Parks.

Supporting apprentices and trainees

The Government will support jobs for apprentices and trainees through this period of economic challenge by providing $1.3 billion for up to 70,000 small business, including those using a group training organisation to support the retention of around 117,000 apprentices and trainees. This support, which will be in the form of a wage subsidy of 50 per cent for apprentices and trainees, will help ensure the continuing development of the skilled workforce that Australia's employers need.

Supporting the aviation industry

Australia's aviation industry has been among the first sectors affected by the Coronavirus outbreak. The sector is facing an unprecedented and sustained period of falling international and domestic aviation demand.

The Government will provide $715 million to support the aviation industry as it grapples with these challenges.

The Bill will refund aviation fuel excise and refund or waive charges levied by Airservices Australia on domestic airline operations.

The Bill also includes funding to reimburse domestic and regional aviation security charges. The provisions will apply to charges paid by domestic airlines since 1 February 2020 – providing an upfront benefit of $159 million to our airlines to provide immediate relief.

Supporting child care

The Government will amend the A New Tax System (Family Assistance) Act 1999 and A New Tax System (Family Assistance) (Administration) Act 1999 to allocate extra allowable absence days for child care in addition to the current 42 days. The Minister for Education will have the power to prescribe where a family does not need to provide evidence in relation to additional absences related Coronavirus.

The Government is also waiving the current obligation of child care services to enforce payment of gap fees for a particular event or circumstance and the period specified in a Minister's Rule. This will enable services to provide fee relief to families where exceptional circumstances require it for limited periods.

Giving retirees more control over their superannuation

The Bill also adjusts the superannuation minimum drawdown rates, reducing them by 50 per cent for the 2019-20 and 2020-21 income years. 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.

This measure will help alleviate concerns of retirees regarding selling assets in a loss position, giving them greater control over their capital during a time of increased market volatility and assist with retirees' confidence in the economy.

Temporary Jobseeker payment and Coronavirus supplement

Additional temporary financial support will be provided to working-age income support recipients through a Coronavirus Supplement of $550 per fortnight. This measure will provide streamlined access to income support and extended eligibility to income support payments for people whose income is significantly reduced by the economic impact of the Coronavirus. The Minister for Families and Social Services will have the power extend the Coronavirus Supplement in whole or in part to other categories of recipients of social services payments.

This measure will also create a new category of Crisis Payment where a person will qualify for payment if there is a national health emergency, such as the Coronavirus, and delay commencement of the Simplifying Income Reporting Act for up to a year to ensure Services Australia can focus on assisting people who require income support as a result of the Coronavirus.

Providing flexibility in the Corporations Act

Treasury Ministers will be given a time-limited instrument-making power in the Corporations Act 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. Each instrument would be effective for up to six months from when the instrument is created.

Assisting businesses to trade through the crisis

The Government will also provide a safety net for businesses to allow them to get through a temporary period of insolvency and recover when economic growth picks up.

To do this, we are amending the Corporations Act to temporarily increase the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice and extending the period of protection a debtor receives after making a declaration or intention to present a debtor's petition. There will also be temporary relief for directors from any personal liability for trading while insolvent.

For owners or directors of a business that are currently struggling due to the Coronavirus, the Australian Taxation Office will tailor solutions for their circumstances including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups. This will provide directors with additional confidence to continue to trade through this difficult period.

Allowing early release of superannuation

We are establishing a new temporary compassionate ground of early release of superannuation for individuals and sole traders impacted by the economic consequences of the Coronavirus. This will allow impacted individuals to access up to $10,000 of their superannuation tax-free in 2019-20, and up to a further $10,000 in 2020-21. Applications must be made within six months of Royal Assent of this legislation and will be able to be made online via the myGov portal.

Medicare Levy

This Bill amends the Medicare Levy Act 1986 and A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 to increase the Medicare levy low-income thresholds increase for singles, families and seniors and pensioners to ensure these remain in line with changes to in the consumer price index.

Charter of Budget Honesty

During this time of uncertainty it is extremely difficult to formulate reliable economic and fiscal estimates over the next few months. In line with the Government's decision to postpone the Budget until later this year, the next Intergenerational Report will now be released in mid-2021 to ensure there is adequate time to produce long term projections that are based on robust budget estimates.

The Government remains committed to producing an intergenerational report that assesses the long term sustainability of the Government's finances. The Charter will continue to require 5 year updates of the IGR from 2021.

Deferral of sunsetting

Over the coming months this Parliament will, quite rightly, be focused on responding to the needs of the Australian community. During the next six months 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 6 months. This will ensure no gaps occur in our laws during this critical period.

Guarantee to lend

The Government understands the need to move quickly to provide support and relief to small and medium-sized enterprises (SMEs) that are under incredible pressure and play such an integral role in the Australian economy. We are providing a guarantee for new short-term loans issued by Authorised Deposit-taking Institutions (ADIs) and non-ADI lenders to support SMEs to cover immediate cash flow needs in response to the economic crisis associated with the Coronavirus pandemic.

Importantly, the guarantee will apply to eligible loans made after the Government's announcement of this measure regardless of whether the loans were made before or after the commencement of the Bill. There is an overall cap of $20 billion on the appropriation for meeting liabilities under the guarantee. In the event of a loan default, under this measure, the Government will compensate the lender for an agreed proportion of the losses.

Supporting Australia's small and medium enterprises

The Commonwealth will be authorised to participate in forming, and acquiring shares in, or debentures of, the Australian Business Growth Fund, and appropriates $100 million for that purpose.

The Australian Business Growth Fund's purpose will be to offer growing, established companies patient equity capital and strategic support, to assist them to reach their growth potential. Business seeking support can be from across Australia and from a range of industries.

Established Australian businesses will be eligible for long-term equity capital investments between $5 million and $15 million, where they can demonstrate three years of revenue growth and profitability and a clear growth vision.

Supporting severely affected regions

This response package will appropriate a further $1 billion from the Consolidated Revenue Fund to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus.

Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities through the funding allocated in this package.

Structured Finance Support

The Government is also establishing a $15 billion Structured Finance Support (Coronavirus Economic Response) Fund and the Structured Finance Support (Coronavirus Economic Response) Fund Special Account.

The Fund will ensure continued access to funding markets impacted by the economic effects of the Coronavirus pandemic and promote competition in consumer and business lending markets.

In particular, this will ensure that smaller lenders can maintain access to funding, by the Government making targeted investments in structured finance markets.

Appropriations

To fund this Package, the Government is appropriating the necessary funds from the Consolidated Revenue Fund.

Full details of the measures contained in the Package are set out in the Explanatory Memorandum to the Bills.

GUARANTEE OF LENDING TO SMALL AND MEDIUM ENTERPRISES (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020

This Bill supports the Coronavirus Economic Response Package Omnibus Bill 2020 by providing a guarantee for new short-term loans issued by Authorised Deposit-taking Institutions (ADIs) and non-ADI lenders to support small and medium-sized enterprises to cover immediate cash flow needs in response to the national economic crisis associated with the Coronavirus pandemic.

Full details of the Bill are contained in the Explanatory Memorandum already tabled.

AUSTRALIAN BUSINESS GROWTH FUND (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020

The Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020 supports the Coronavirus Economic Response Package Omnibus Bill 2020 and introduces legislation that authorises the Commonwealth Government to participate in forming, and acquiring shares in or debentures of, the Australian Business Growth Fund and appropriates $100 million for that purpose.

Full details of the Bill are contained in the Explanatory Memorandum already tabled.

ASSISTANCE FOR SEVERELY AFFECTED REGIONS (SPECIAL APPROPRIATION) (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020

The Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020 supports the Coronavirus Economic Response Package Omnibus Bill 2020 and will appropriate $1 billion from the Consolidated Revenue Fund to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus. This will include:

Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities through the funding allocated in this Bill.

Full details of the Bill are contained in the Explanatory Memorandum already tabled.

STRUCTURED FINANCE SUPPORT (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020

This Bill supports the Coronavirus Economic Response Package Omnibus Bill 2020 by establishing the $15 billion Structured Finance Support (Coronavirus Economic Response) Fund and the Structured Finance Support (Coronavirus Economic Response) Fund Special Account.

Full details of the Bill are contained in the Explanatory Memorandum already tabled.

APPROPRIATION (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL (NO. 1) 2019-2020

Today, the Government introduces the Coronavirus Economic Response Appropriation Bills. These Bills are:

Together, these Bills underpin the Government's Coronavirus Response expenditure decisions. These Bills ensure there is sufficient appropriation to implement decisions in 2019-2020 that support the Government's response to the Coronavirus.

Appropriation (Coronavirus Economic Response) Bill (No. 1) 2019-2020 seeks approval for appropriations from the Consolidated Revenue Fund of just over $1.6 billion. The Bill will provide the Department of Health with an additional $571.6 million, including $113.5 million to establish and operate dedicated respiratory clinics to assist with diagnosing and managing respiratory cases, including Coronavirus, influenza, and pneumonia. A further $48 million will be provided to support aged care providers experiencing a Coronavirus outbreak, providing workforce, financial support and consumer education. A further $119.0 million will be provided to support a range of measures to support a national communications program and a Triage Hotline.

Further, the Bill will provide $188.6 million to the Department of Education, Skills and Employment, to provide support for small businesses to retain their apprentices and trainees by providing a wage subsidy of 50 per cent of the apprentice's or trainee's wage. This measure will support up to 70,000 businesses, employing around 117,000 apprentices and trainees.

The Bill also provides an additional Advance to the Finance Minister (AFM) provision of $800 million to provide the Government with the capacity to allocate additional appropriations for Coronavirus related responses that are not contemplated in the current package. While this new AFM provision is significant, it will be limited to Coronavirus response requirements only, including health and economic responses.

Details of the proposed expenditure are set out in Schedule 1 to the Bill. Further details of the Bill are contained in the Explanatory Memorandum already tabled.

APPROPRIATION (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL (NO. 2) 2019-2020

Appropriation (Coronavirus Economic Response) Bill (No. 2) 2019-2020, along with Appropriation (Coronavirus Economic Response) Bill (No. 1) 2019-2020, which was introduced earlier appropriate funds to support the Government's Coronavirus Economic Response.

This Bill seeks approval for appropriations from the Consolidated Revenue Fund of $744 million, primarily for the Department of Health.

This will provide $700 million for the purchase of additional personal protective equipment for the National Medical Stockpile, including surgical and P2 masks, surgical gowns, gloves and goggles. A further $40 million will be provided to purchase antibiotics and antivirals for the National Medical Stockpile.

The Bill also provides an additional Advance to the Finance Minister (AFM) provision of $1.2 billion to provide the Government with the capacity to allocate additional appropriations for Coronavirus related responses that are not contemplated in the current package. While this new AFM provision is significant, it will be limited to Coronavirus response requirements only, including health and economic responses.

In early March, the Finance Minister approved two advances under Appropriation Act (No 2) 2019-20, at a total of $300 million, for initial Coronavirus related responses. This latest AFM provision is a proportionate expansion of the size of the AFM facility that will be available through to the end of this financial year, to assist in the management of this significant challenge to public health and the economy.

Details of the proposed expenditure are set out in the Schedule 1 to the Bill. Further details of the Bill are contained in the Explanatory Memorandum already tabled.

BOOSTING CASH FLOW FOR EMPLOYERS (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020

This Bill provides legislative authority for the Tax Commissioner to make cash flow boost payments to eligible entities.

Full details of the Bill are contained in the Explanatory Memorandum already tabled.