AUSTRALIA – POLITICS AND GOVERNMENT

Insolvency law change to head off avalanche

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Original article by Matthew Cranston
The Australian Financial Review – Page: 6 : 23-Mar-20

The federal government will make temporary changes to laws governing insolvent trading in response to the pandemic. Amongst other things, directors will be exempt from personal liability if a company is found to be trading while insolvent, while the threshold at which creditors can initiate bankruptcy proceedings against a company will be increased from $5,000 to $20,000. These measures will remain in place for at least six months.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Third bailout being prepared as $66b injected to help first blows

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 23-Mar-20

The second stage of the federal government’s stimulus package includes the introduction of a welfare wage for workers who lose their jobs due to the coronavirus pandemic. They will be eligible for a fortnightly payment of up to $1,100, while the existing Newstart allowance will be increased and renamed the Jobseeker Payment. Workers who are stood down will also be able to withdraw up to $20,000 from their superannuation fund. Meanwhile, businesses with annual turnover of up to $50m will be eligible for a cash payment of up to $100,000. The government and the nation’s banks will also jointly provide a $40bn loan facility for small and medium enterprises.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

A nation in shutdown

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 23-Mar-20

The federal government has announced details of a ‘stage one’ coronavirus lockdown following a meeting of the national cabinet. Businesses that provide non-essential services will be forced to close from midday on 23 March, including pubs, clubs, cinemas and casinos. Churches and indoor sports facilities are also among the venues that must close indefinitely. Prime Minister Scott Morrison has warned that more onerous stage two restrictions will be imposed if people fail to comply with the initial restrictions. Schools in most states will remain open for the remainder of the first term.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Government relents on Newstart

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 20-Mar-20

The second phase of the federal government’s stimulus package will include an increase in the Newstart allowance for people who are currently unemployed. The Coalition had previously flagged a higher income payment than Newstart for workers who lose their job due to the coronavirus outbreak. However, it has long opposed an increase in unemployment benefits, arguing that getting a job is the best form of welfare. Prime Minister Scott Morrison has conceded that getting people off Newstart and into the labour market will be difficult over the next six months due to the economic impact of the pandemic.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Criminal charges for food profiteering

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 20-Mar-20

Home Affairs Minister Peter Dutton claims that some members of the community are profiteering from coronavirus-inspired demand for groceries. Dutton has warned that people who are found to be buying groceries in bulk in order to send them overseas or to sell them on the black market could face criminal prosecution. Agriculture Minister David Littleproud notes that Australia produces three times the amount of food that is consumed domestically, so there is no need for panic buying.

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AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Operation Covid: save jobs

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Original article by Geoff Chambers, Simon Benson, Ewin Hannan, Robyn Ironside, Greg Brown
The Australian – Page: 1 & 6 : 18-Mar-20

The global death toll from the coronavirus has risen to 7,950; more than 197,000 people worldwide have been diagnosed with the respiratory illness, including 452 in Australia. The federal government will respond to the crisis with new measures aimed at supporting businesses and protecting jobs, in addition to the $17.6bn stimulus package that has previously been announced. Council of Small Business Organisations Australia CEO Peter Strong says many businesses could collapse without financial relief, with the potential loss of 500,000 jobs. The government will also provide a $715m financial assistance package for airlines, with Qantas CEO Alan Joyce warning that the virus is the "single biggest shock" the sector has ever seen.

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COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN

Boosted funding for at-risk industries

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Original article by Geoff Chambers, Simon Benson, Richard Ferguson
The Australian – Page: 1 & 4 : 17-Mar-20

Legislating the federal government’s $17.6bn economic stimulus package will be a priority when parliament resumes on 23 March. The government will pursue additional stimulus measures that will target industries that will be hardest hit by the coronavirus pandemic; the Budget in May is also tipped to include more government support for businesses. Meanwhile, the national cabinet will consider restrictions on gatherings in enclosed spaces such as cinemas and restaurants. The existing ban on gatherings of more than 500 people has resulted in the cancellation of many cultural and sports events.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Virus puts nation on war footing

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Original article by Geoff Chambers, Simon Benson
The Australian – Page: 1 & 6 : 16-Mar-20

The global death toll from the coronavirus has risen to 6,492. More than 168,000 people worldwide have been diagnosed with the respiratory illness, including 300 in Australia, while the nation has recorded its fifth death from the pandemic. The federal government has announced that all people arriving in Australia from overseas will be required to self-isolate for 14 days; those who fail to do so can be jailed for up to 12 months and fined up to $50,000. International cruise ships will also be banned from Australian ports for at least 30 days, while a ban on non-essential gatherings of more than 500 people takes effect on 16 March.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PM’s cash splash to save jobs

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Original article by Simon Benson, Geoff Chambers
The Australian – Page: 1 & 4 : 12-Mar-20

Prime Minister Scott Morrison is confident that all necessary legislation for the federal government’s economic stimulus package will be passed in the last sitting week of Parliament prior to the Budget in May. The package will cost almost $18bn in total, in addition to the government’s $2.4bn health plan in response to the coronavirus. Small and medium enterprises will be a focus of the package; they will receive a cash payout of between $2,000 and $25,000, plus a wage subsidy to ensure that they continue to employ apprentices. The threshold for the instant asset write-off will be increased from $30,000 to $150,000. The stimulus package will rule out a Budget surplus for 2019-20.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Fast cash to calm virus storm

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Original article by Simon Benson, Patrick Commins
The Australian – Page: 1 & 6 : 10-Mar-20

Cabinet’s expenditure review committee is set to approve the federal government’s economic stimulus package within days. Prime Minister Scott Morrison will use a speech on 10 March to argue that the stimulus must be targeted and position both the domestic economy and the federal budget to rebound when the coronavirus crisis is over. He will also urge large companies to support their employees, customers and suppliers, and to ensure that small businesses are paid promptly. National Australia Bank’s chief economist Alan Oster says the package must be worth at least $10bn and should include measures such as a business investment allowance and income tax cuts.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB