In our previous post, we informed you of the impact that the COVID-19 virus has had on parliaments around the word. Most parliaments have either adjourned their sittings until further notice or continued with their business but with precautionary measures put in place.
In this post, we bring you news on what parliaments around the world are doing to address the challenges occasioned by COVID-19.
We start with the Parliament of Australia.
The Parliament of Australia has passed the following Bills today, March 23:
Coronavirus Economic Response Package Omnibus Bill 2020
The Bill provides critical support for the Australian economy and Australia’s 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:
- Households through two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders, around half of whom are pensioners; and a new, time-limited Coronavirus supplement of $550 per fortnight to new and existing JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit recipients. For the period of the Coronavirus supplement there will be expanded access to these income support payments and faster claims processing;
- Cash flow assistance to help small and medium sized business to stay in business, keep their employees and retain apprentices and trainees;
- Investment support to 3.5 million eligible businesses employing 9.7million Australians by lifting the asset write-off threshold to $150,000 until 30 June 2020 and providing a 15-month investment incentive by accelerating depreciation deductions; and
- Support for regions and communities that have been disproportionately affected, including those heavily reliant on industries such as tourism, agriculture and education.
The measures in this package are temporary, targeted and proportionate to the challenge faced by Australians.
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.
The Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020
The bill, which you can access here, 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:
- the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and three Commonwealth National Parks
- additional assistance to help businesses identify alternative export markets or supply chains;
- additional targeted measures to further promote tourism
Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-2020
The Australian Government has introduced the Coronavirus Economic Response Appropriation Bills. These Bills are: Appropriation (Coronavirus Economic Response) Bill (No.1) 2019-2020; and Appropriation (Coronavirus Economic Response) Bill (No.2) 2019-2020.
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.
The 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.
Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-2020
The Appropriation (Coronavirus Economic Response) Bill (No.2) 2019-2020, along with Appropriation (Coronavirus Economic Response) Bill (No.1) 2019-2020, 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 significant challenge to public health and the economy.
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.
Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020
The 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.
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.
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