GOVERNMENT SPENDING POLICY – AUSTRALIA

Tanking arts and entertainment sector to get $250m support package

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Original article by Phillip Coorey, Tom McIlroy
The Australian Financial Review – Page: 8 : 25-Jun-20

The federal government will announce details of a $250m coronavirus rescue package for the arts and entertainment sector on 25 June. The package will provide grants and low-interest loans to businesses and cultural institutions in a sector that has been hard-hit by the coronavirus lockdown. Prime Minister Scott Morrison says the package will provide financial assistance for all people in the sector, including those who build stage sets and develop computer-generated special effects, rather than just actors and performers.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

JobKeeper cash needed for schools and hospitals

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Original article by Rosie Lewis
The Australian – Page: 2 : 16-Jun-20

Restaurant & Catering Australia CEO Wes Lambert has urged the federal government to retain the JobKeeper wage subsidy scheme until at least the end of 2020. However, Prime Minister Scott Morrison has argued that retaining coronavirus stimulus measures beyond the scheduled expiration date of late September would result in less funding for essential services such as health and education. The government may introduce stimulus measures that target sectors which have been hardest hit by the economic downturn.

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RESTAURANT AND CATERING INDUSTRY ASSOCIATION OF AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

State delays hold up HomeBuilder grants

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Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 16-Jun-20

Housing Minister and Assistant Treasurer Michael Sukkar says there is a lot of interest in the federal government’s HomeBuilder scheme. He says there have been more than 296,000 visits to the HomeBuilder website and over 23,000 people have registered their interest in the scheme. However, mortgage brokers claim that they have not yet been able to get any borrower processed under the scheme, as the states have not yet signed up to it. Homeloanexperts.com.au MD Otto Dargan says it is still waiting to hear from the appropriate state government bodies on advice as to how the scheme will work.

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AUSTRALIA. DEPT OF THE TREASURY, HOMELOANEXPERTS.COM.AU

Asset write-off extension to aid business

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Original article by Matthew Cranston, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 9-Jun-20

The federal government will extend its $150,000 instant asset write-off scheme for another six months. It will be accessible to companies with annual turnover of less than $500 million, which covers more than 3.5 million businesses employing over 9.7 million people. Council of Small Business Organisations CEO Peter Strong says the government has done the right thing by the small business sector in extending the scheme.

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COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED

The Government’s HomeBuilder scheme offers $25k for home renovations – but not everyone will qualify

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Original article by Jordan Heyne
abc.net au – Page: Online : 5-Jun-20

People wanting to apply for grants of $25,000 to build a new home or renovate an existing one under the federal government’s HomeBuilder scheme must meet a range of criteria. They income thresholds and limits on the value of homes to be newly built, including the land. Contracts for new homes or renovations must be entered into before the end of 2020, and construction must begin within three months of the contract date. People wanting to use the money for a renovation must spend at least $150,000 of their own funds, and the home being renovated must be worth less than $1.5 million prior to the renovation. Investment properties do not qualify for the scheme.

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Near $1bn boost for building kicks off targeted stimulus

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Original article by Geoff Chambers
The Australian – Page: 1 & 2 : 3-Jun-20

The federal government is expected to release details of its coronavirus stimulus package for the construction industry on 4 June. It is tipped to include cash grants of between $20,000 and $50,000 for people buying a new home, in order to avert a decline in construction activity towards the end of 2020. The government is also expected to provide cash grants for home renovations. A stimulus package for the arts and entertainment is also said to be on the government’s agenda.

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Lowe urges paying subsidies for longer

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Original article by Patrick Commins
The Australian Financial Review – Page: 4 : 29-May-20

Treasurer Josh Frydenberg has reiterated that the JobKeeper wage subsidy scheme and the doubling of the JobSeeker allowance are temporary and targeted measures. However, Reserve Bank of Australia governor Philip Lowe has told a Senate committee hearing that there may be a case for extending some of the coronavirus stimulus measures; he has warned that withdrawing the fiscal stimulus too soon could hinder the economy’s recovery from the pandemic. Lowe also said that recent economic data suggests that the downturn may not be as severe as had been forecast.

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AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Cut tax to spark mining boom

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Original article by Geoff Chambers
The Australian – Page: 1 & 5 : 25-May-20

The Minerals Council of Australia has urged the federal government to reduce the company tax rate as part of its post-coronavirus economic strategy. MCA CEO Tania Constable says the nation’s corporate tax rate is not internationally competitive, and measures such as tax reform and speeding up project approvals could prompt a new wave of resources projects worth around $100bn. Master Builders Australia has in turn called for a $13.2bn stimulus package for the construction industry. Prime Minister Scott Morrison will deliver an economic recovery speech on 26 May.

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MINERALS COUNCIL OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Bushfire recovery bill could top $2 billion: PM

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Original article by Tom McIlroy
The Australian Financial Review – Page: 10 : 12-May-20

Prime Minister Scott Morrison says that federal government spending on helping communities to recover from the impact of the summer bushfires could end up exceeding $2 billion. He has also announced another $650 million in bushfire assistance, with Morrison and Emergency Management Minister David Littleproud saying that the regions that were hit the hardest would be prioritised under the latest funding. Upwards of 16,700 applications have been approved for special small business support grants of $10,000, as well as 1,300 applications for small business grants of $50,000.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

‘Australians know there is no money tree’: Treasurer

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 12-May-20

Treasurer Josh Frydenberg will use his economic statement on 12 May to stress that there must be a limit to the federal government’s stimulus and assistance schemes, and they must eventually be wound back. Treasury has estimated that the government’s three-stage strategy to re-open the economy by July will boost GDP by $9.4bn a month and generate 850,000 jobs. However, Frydenberg will emphasise that this is dependent on Australians continuing to observe social distancing and hygiene measures.

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AUSTRALIA. DEPT OF THE TREASURY