Update on Australian Government Response to COVID-19

Government forced to confirm JobKeeper 

This week the Federal Government was forced to confirm that JobKeeper would remain in place for the full six months, after it announced that it would cease JobKeeper payments for the child care sector next month. As people return to work and children resume school, the Government will resume its child care subsidy for eligible providers, as well as providing a transition payment. Noting that the child care sector was a special case, Prime Minister Scott Morrison confirmed that JobKeeper would remain until the end of September.

Treasury eases unemployment forecast

Federal Treasury head Dr Steven Kennedy has delivered a more optimistic view of Australia’s economic recovery, in a presentation to a Senate committee hearing on COVID-19. Dr Kennedy forecast that unemployment would be around eight per cent in September, down from the 10 per cent originally predicted. 

Extension for instant asset write-off 

In a further move to stimulate business investment, the Morrison Government said it would extend the $150,000 instant asset write-off for six months until 31 December this year. Australian businesses with annual turnover of less than $500 million will be encouraged to bring forward investment to support economic growth over the near term. Assets can be new or second-hand.

National security tests for foreign investment

Federal exposure draft legislation will be released next month to introduce a national security test for businesses that start or acquire a ‘sensitive national security business’, regardless of value. Amid concerns over international supply chains, the Federal Government said the proposed legislation would include a national security last-resort power, provide the ability to impose or vary conditions and in extraordinary circumstances, order disposal on national security grounds.

Tehan readies for university enrolment switch

As the nation’s universities grapple with revenue shortfalls following the disruption to international student enrolments, Education Minister Dan Tehan has predicted that domestic students presently unemployed may help to fill the void. Mr Tehan said the Government would work with the university sector on accommodating more younger people who had become unemployed. The Government has resisted calls to extend JobKeeper scheme to universities while guaranteeing more than $18 billion of funding for the sector.

Eden-Monaro by-election on July 4

Fourteen candidates will contest the by-election for the marginal Labor-held seat of Eden-Monaro on July 4. Both Liberal and National parties will run in the seat, which at the 2019 Federal Election was won by Labor’s recently-retired Dr Mike Kelly by a margin of 0.8 per cent. Significantly, the Shooters, Fishers and Farmers Party will contest the seat, drawing the top spot on the ballot. The party did not run among the eight candidates for the seat at the 2019 election and the direction of its preferences to the Coalition parties may decide the seat.