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

Firstly I thank those senators who have contributed to this debate. The measures contained in the Coronavirus Economic Response Package Omnibus Bill 2020 provide critical support for the Australian economy and for those in our community most affected by the global spread of the coronavirus. The measures include additional household income and business support that is designed to flow through to and strengthen the wider Australian economy.

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 aggregated 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, 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 back to eligible businesses and not-for-profits, including charities. This will benefit around 690,000 businesses, employing around 7.8 million people, and around 30,000 not-for-profits will also benefit.

Schedule 4 to the bill provides for the payment of the first economic support payment of $750 to around 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 and 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. The 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 Australia continues to have a world-class biosecurity system which is flexible and responsive to public health threats such as those caused 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 government has set aside to support those 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 for the Treasurer to grant time-limited relief from regulatory requirements where these would interfere with the ability of companies to manage the business through the impacts of the coronavirus.

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

Schedule 10 to the bill reduces the superannuation minimum drawdown rights for the 2019-20 and 2020-21 income years by 50 per cent. These rights 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 to the bill 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, but it 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 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 in 2020-21.

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

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

Schedule 16 to the bill will allow responsible ministers to defer sunsetting dates over the coming months when 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 instruments are scheduled to sunset. When 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 no gaps occur in our laws during this critical period.

The government understand the need to move quickly to provide support and relief to small and medium-sized enterprises 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 and non-ADI lenders to support small and medium-sized enterprises 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 this bill. There is an overall cap of $20 billion on the appropriation for meeting liabilities under this guarantee. In the event of a loan default under this measure, the government will compensate the lender for an agreed proportion of the losses.

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. Businesses 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 of between $5 million and $15 million where they can demonstrate three years of revenue growth and profitability and a clear growth vision. 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.

The government is also establishing a $15 billion Structured Finance Support (Coronavirus Economic Response) Fund and a 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. To fund this package, the government is appropriating the necessary funds from the Consolidated Revenue Fund. I should also advise the chamber that, after some further discussions between the government and the opposition, the government will be proposing some amendments to this legislation. May I pause here to say that the government has very much appreciated the positive and constructive engagement with the opposition and the spirit in which discussions on this and a number of other bills and measures have taken place in recent times, so thank you very much.

The government will amend social security law to allow the Minister for Families and Social Services to make changes to the relevant legislation via a legislative instrument. This power would allow the government to act with the utmost flexibility in the unprecedented circumstances we're experiencing in respect of the coronavirus outbreak. It will allow us to alter settings associated with payment rates, means-testing arrangements, eligibility criteria, waiting periods and residency requirements to respond in a measured and timely manner where appropriate. We are supercharging our safety net in order to assist Australians impacted by the coronavirus. This power would cease at the end of 2020. We intend to use this power immediately to make student payments—Abstudy, Austudy and youth allowance for students—and to make changes to the partner income test. The government recognises that, in these unprecedented times, some Australians will need to depend on government assistance in the short term to help them through. Providing additional financial support through social security is just one of the many ways that the Australian government, with the support of the Australian parliament, is helping to support individuals, communities and the economy during these testing times. This builds on the broader economic response package to coronavirus. I commend these bills to the Senate.