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Barr’s $137 million COVID-19 stimulus package: what you will get

Ian Bushnell 22 March 2020 37
Andrew Barr

Chief Minister Andrew Barr: ”We must save as many local jobs as possible.” Photo: Dominic Giannini.

The ACT Government’s $137 million coronavirus stimulus package announced today includes rebates on residential rates to help ease cashflow pressures for Canberra households, and a freeze on a number of government fees and charges.

ACT Chief Minister Andrew Barr said the economic survival package was the first phase in the Government’s plan to protect as many jobs as possible and support Canberra households and businesses.

The Government will freeze the fire and emergency services levy, public transport, vehicle registration and parking fees, and introduce a number of measures to support small to medium businesses as they adjust to social distancing requirements and an expected downturn in the local economy.

All residential ratepayers, 168,000 households, will receive a $150 rebate on the fixed charge component of their 2020-21 rates, while 6000 businesses will have their annual fixed charge of $2622 accredited automatically, for properties with an AUV below $2 million.

The rates package amounts to $41.7 million.

People who receive the utilities concession, about 35,000 households, will have $200 applied to their electricity bill, while small businesses that use 100 megawatts a year will have $750 automatically applied to their accounts.

Public housing tenants, about 12,000 households will receive $250 to complement the $150 Commonwealth payment.

There will be a six-month waiver of payroll tax from 1 April for businesses in the most-affected sectors such as tourism, hospitality and entertainment.

Medium-sized businesses with payrolls up to $10 million will be able to defer their 2020-21 payroll tax liability, interest free, until 1 July 2022. Businesses with payrolls under $2 million don’t pay payroll tax.

The government will accelerate payment of invoices for local enterprises to increase cash flow.

The government is waiving all food business registration, liquor licensing and outdoor dining fees for 12 months from April.

Taxi and ride-share fees will also be waived.

There will be a $20 million fund to boost screwdriver-ready minor capital works projects that don’t need procurement processes, and $3 million to fast track urban forest and public realm maintenance.

Casual and gig economy workers will also receive support, as well as clubs and the VET sector.

“We will provide an additional payment of $1.5 million, as well as freeing up the existing $1.8 million in the Clubs Diversification Fund to support our clubs to keep staff employed on the clubs’ award rate,” Mr Barr said.

Subsidies for apprenticeships, traineeships, and other VET students will be increased through a $2 million injection into the sector.

The community sector will benefit from $7 million package to meet increased demand for emergency relief.

Lifeline ACT with get an additional $100,000 to bolster its support services following a recent spike in calls.

The government will also bring forward $500,000 in arts grants to keep local arts groups going.

ACT Government agencies have been instructed to prioritise the processing of development applications, with 10 more staff for the DA assessment team in addition to the new front line staff announced in the 2019-20 Budget.

Mr Barr said the government would use existing payment systems so people did not have to contact the government.

“I wanted to be able to deliver the benefits quickly,” he told ABC radio this morning.

The government will also boost resources to support public health services to continue providing essential health services to the community and to respond to the additional demands of the COVID-19 pandemic.

This includes funding for respiratory assessment clinics and to increase inpatient beds and ICU capacity across the Territory, maintain COVID-19 testing capacity and purchase additional medical equipment and supplies.

The stimulus package is likely to be the first of four initiatives to support the ACT economy.

“In the first phase of our response, the ACT Government will implement a range of measures to reduce cashflow pressures in the short term for low-income households and local small and medium businesses in the industry sectors that are most impacted,” Mr Barr said.

“We must save as many local jobs as possible as our economy adjusts to the difficult decisions being made at the national level to flatten the transmission curve and support our healthcare system.”

Mr Barr said the economic impacts of the virus would be felt for years, and required a phased response both before, during and after the anticipated peak in COVID-19 cases across Australia.

“We will announce further packages as we transition through the different phases of this crisis,” he said.

 


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37 Responses to Barr’s $137 million COVID-19 stimulus package: what you will get
Toni Cooper Toni Cooper 9:26 pm 21 Mar 20

How about Barr government do something about the fuel prices, companies are clearly ripping people off

    Christine Bruce Christine Bruce 8:46 am 22 Mar 20

    Toni Cooper they've actually dropped up here. Imagine how much money they'll lose while everyone's isolated. Best excuse to raise prices again

    Toni Cooper Toni Cooper 9:04 am 22 Mar 20

    Christine Bruce so they should drop. We paid $1.16 for diesel at Costco & drove past a Shell & Woolworths servos, they were charging $1.49. How can they possibly justify that

    When we can work from home... won’t happen for hubby (he’s more likely to be laid off if things get really bad) we won’t afford fuel or need as much. Will be interesting to see what happens

Phil Andrews Phil Andrews 6:38 pm 21 Mar 20

Does the ACT Govt have a combined cabinet during the crisis to draw on the representatives and experience of the whole of the Assembly or is the Barr govt so arrogant that they believe they can manage this alone?

    Mark Ellis Mark Ellis 6:41 pm 21 Mar 20

    Phil, cabinet? Isn’t it just Andrew on his own? He put’s the I into an IKEA Cabinet.

Bill Pappas Bill Pappas 10:32 am 21 Mar 20

How about fixing the price gouging of petrol prices in Canberra... that will help heaps of people now

Bostijan Savle Bostijan Savle 5:17 am 21 Mar 20

Kiss 75% of all hospitality good bye.

Paul Jones Goalkeeping Paul Jones Goalkeeping 1:32 am 21 Mar 20

So as a land lord with a mortgage you think I should allow a person to live in my house and them Pay nothing while I need to service the mortgage. We are all hurting. My business is on the verge of going broke and now you asking that I be responsible to other people’s problems.

    Aaron Smith Aaron Smith 8:19 am 21 Mar 20

    Paul Jones Goalkeeping hang in there mate.

    Rob McGlinn Rob McGlinn 2:03 pm 21 Mar 20

    Is the govt saying that landlords should allow tenants to stay in your home rent free? That's ridiculous. The govt should be subsidising that not the landlord. A rates holiday doesn't mean you will have enough money to pay the mortgage.

    btw I am a landlord and also a tenant. I have a house in QLD I rent out and I rent a townhouse here in Canberra. If something were to happen to my income and I couldn't afford my rent there is no way I would expect my landlord to let me live there rent free. I would give notice and move out or find another way to earn income. Tough times but we just need to think outside the square and adapt :)

    Dan Chaldi Dan Chaldi 5:05 pm 21 Mar 20

    I think they're talking about commercial property.

    Brooke Hepburn-Rogers Brooke Hepburn-Rogers 8:50 am 22 Mar 20

    Paul Jones Goalkeeping I didn’t read anything on rent being suspended. What did I miss? Pretty sure they haven’t said this. This would be pretty poor form.

    Brooke Hepburn-Rogers Brooke Hepburn-Rogers 8:50 am 22 Mar 20

    Rob McGlinn they didn’t say this 🙂

    Brooke Hepburn-Rogers Brooke Hepburn-Rogers 8:51 am 22 Mar 20

    Dan Chaldi I am sure they didn’t see stop rent, they suggested freezing it, but didn’t say they will at this time 🙂

KevT KevT 9:59 pm 20 Mar 20

Here’s an idea for Messrs Barr and Shane what’s-his-name. Sell the tram for scrap metal and terminate all contracts and use the proceeds to help small businesses.

Alec Dicksen Alec Dicksen 5:06 pm 20 Mar 20

feeling for you Andrew and all the other owner operators

    Andrew Gillan Andrew Gillan 7:21 pm 20 Mar 20

    Cheers mate. A tough time for the coach industry, that’s for sure.

Andrew Gillan Andrew Gillan 4:39 pm 20 Mar 20

I have a small coach business. We specialised in school educational tours, senior charters, sports charters, weddings etc. 100% cancellations until at least the end of June. Tough times ahead.. don’t see much there to help in the short term.

    Peter Curgenven Peter Curgenven 7:24 pm 20 Mar 20

    Andrew Gillan not good all round andrew stuggleing every where lets hopefully wont last to long then their wont be enought time in the day

    Andrew Gillan Andrew Gillan 7:43 pm 20 Mar 20

    We can only hope so Pete. 👍👍

Rick Reeks Rick Reeks 4:17 pm 20 Mar 20

Far to little far too late.

Vanessa Jones Vanessa Jones 2:26 pm 20 Mar 20

Will CBR casual NDIS workers get sick leave for #covid2019 or have to work ill?

aaa123 aaa123 2:09 pm 20 Mar 20

How much of this supposed “spending” on payroll tax relief will just end up as disguising the predicted drop in payroll tax revenue due to less jobs as some kind of government gift to business. Businesses who have basically completely shut down, won’t be paying payroll tax on non existent workers anyway so it won’t help them.

And we will get a $150 rates rebate for next financial year, but the rates increases are still happening so rates are still going up probably well above inflation anyway.

It’s good to see they have their priorities right with the $500,000 on arts though.

Harry Sotiropoulos Harry Sotiropoulos 11:43 am 20 Mar 20

What happens with casual workers who get laid off?

SNR SNR 11:32 am 20 Mar 20

I am sure Canberrans will step up and help each other. I propose that those who can afford it, donate the $150 rates rebate to a charity, or use it to support a local business. Our community came together during the bushfire crisis, now let’s come together (not literally, of course!) during this crisis.

maxblues maxblues 11:29 am 20 Mar 20

With $500,000 allocated to Arts, that should get us one sculpture of a stack of toilet paper. Apply for a grant now.

grim123 grim123 10:40 am 20 Mar 20

Don’t get too excited. They will absolutely find a way to reclaim this loss in a couple of months. Probably another large rates hike once this is over.

Gerry Gageldonk Gerry Gageldonk 10:05 am 20 Mar 20

Suspend all bills and payments like Italy has done

Mazzie Woodward Mazzie Woodward 9:59 am 20 Mar 20

Last jurisdiction in Australia

g210 g210 9:39 am 20 Mar 20

How generous, “rebates on residential rates”. Don’t try too hard Barr. Maybe a pause in the annual jacking up of rates? Given how many of us may find ourselves out of a job any day now.

Chris MacDonald Chris MacDonald 9:36 am 20 Mar 20

A land tax holiday for landlords who give tenants who’ve lost their jobs a rent holiday or reduction would be a good start!!!

    Don Jin Don Jin 8:30 pm 21 Mar 20

    You should be the minister

    Chris MacDonald Chris MacDonald 8:31 pm 21 Mar 20

    Don Jin lord no!!! This thing needs people smarter than me. Thanks for the kind thought though

M-Shaka Bubu-Klaus M-Shaka Bubu-Klaus 8:49 am 20 Mar 20

Gaz Rees Fingers crossed this brings some relief

    Nell Feneck Nell Feneck 8:56 am 20 Mar 20

    M-Shaka Bubu-Klaus I’m pretty sure it won’t

    M-Shaka Bubu-Klaus M-Shaka Bubu-Klaus 9:01 am 20 Mar 20

    Nell Feneck I hope ACT Gov follows what WA has done but who knows we’ve all been burnt by our government before! 🤷🏻‍♀️

    Sher Young Sher Young 9:23 am 20 Mar 20

    M-Shaka Bubu-Klaus I’m worried we’re in for another rated hike I n the future, Barr has years of form hitting those in high density living arrangements

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