❓ Mr. Carey questions the Treasurer on the $600 million stimulus package's support for local businesses amidst COVID-19, highlighting the McGowan government's financial management. The Treasurer outlines measures like payroll tax cuts and grants, emphasizing collaboration with the Commonwealth.
AnsweredQoN 157Legislative Assembly
QuestionView source ↗
CORONAVIRUS —
STATE ECONOMY
157. Mr J.N. CAREY to the Treasurer:
I refer to the state government's
response to the economic impacts of COVID-19. Can the Treasurer outline how the
government's $600 million stimulus package will support local
businesses in managing these impacts; and can the Treasurer advise the house
how it is only through the disciplined financial management of the McGowan
Labor government that such a comprehensive and targeted support package can be
delivered?
STATE ECONOMY
157. Mr J.N. CAREY to the Treasurer:
I refer to the state government's
response to the economic impacts of COVID-19. Can the Treasurer outline how the
government's $600 million stimulus package will support local
businesses in managing these impacts; and can the Treasurer advise the house
how it is only through the disciplined financial management of the McGowan
Labor government that such a comprehensive and targeted support package can be
delivered?
AnswerView source ↗
I thank the member for Perth
for that very good question. As the Premier has already outlined, we live in
volatile times. One of the efforts that we have gone to whilst in government is
to restore strength to the balance sheet to respond to the new normal that is
volatility. Of course, most of the time we think about volatility when there is
a sudden decline in commodity prices or economic or fiscal shocks around the
world because an economy like ours is so exposed to any restrictions on the
movement of trade or global growth. Indeed, as a result of the effort of this
government, we have been able to announce a targeted program of stimulus, which
really began last year around maintenance. I
know that a number of state governments are now moving down a similar path of
maintenance spend in schools and hospitals. Last year, we also announced
that we were going to increase the payroll tax threshold in two lots.
Yesterday, we announced the bring forward of that second increase from 1 January
next year to 1 July this year. That will lift the payroll tax threshold to $1 million
and bring 1 000 businesses out of the payroll tax
paying threshold, and a further 11 000 businesses will receive a payroll tax
cut. We recognise that at the moment , businesses around Australia and
the globe—small and medium sized enterprises in particular—are
going to have cash flow issues; there is no doubt about that. Therefore, we
announced a one-off grant of $17 500 for those businesses with a payroll of up
to $4 million. To give members some context, that is a business that employs
about 50 people. That is an important payment to make in July. Why July?
Because it flows in off the back of the commonwealth's
already announced stimulus spend, and that is the point of working closely with
the commonwealth government. I suspect
that the commonwealth government will have more to say about the July–August–September quarter in any event, but I think that will
provide strong support for those businesses. There is no doubt that the state
government has limits. Our contact with businesses that do not pay payroll tax
is, of course, limited, but we are working on that to provide support for those
smaller businesses that come in under the payroll tax threshold. We are working
with the commonwealth government to ensure that it is doing the same, so it is
not just around the demand side and consumer spending. The Premier has already
outlined our decision on fees and charges. It goes hand in glove, of course,
with the commonwealth's announcement of the $750 payment and our energy
assistance payment being front ended.
We are pulling the levers that we
can in a targeted, level-headed way; but, as the Premier outlined, this is
scalable. The responses will continue with what is firmly in mind with
supporting businesses in what may be, in my view, perhaps the toughest trading
conditions that they will see in their lifetime.
The SPEAKER : Before I go on,
Minister for Emergency Services and Minister for Mines and Petroleum, you are
no different from anyone else. You can get your water. You heard what we said,
and you are no different from anyone else.
for that very good question. As the Premier has already outlined, we live in
volatile times. One of the efforts that we have gone to whilst in government is
to restore strength to the balance sheet to respond to the new normal that is
volatility. Of course, most of the time we think about volatility when there is
a sudden decline in commodity prices or economic or fiscal shocks around the
world because an economy like ours is so exposed to any restrictions on the
movement of trade or global growth. Indeed, as a result of the effort of this
government, we have been able to announce a targeted program of stimulus, which
really began last year around maintenance. I
know that a number of state governments are now moving down a similar path of
maintenance spend in schools and hospitals. Last year, we also announced
that we were going to increase the payroll tax threshold in two lots.
Yesterday, we announced the bring forward of that second increase from 1 January
next year to 1 July this year. That will lift the payroll tax threshold to $1 million
and bring 1 000 businesses out of the payroll tax
paying threshold, and a further 11 000 businesses will receive a payroll tax
cut. We recognise that at the moment , businesses around Australia and
the globe—small and medium sized enterprises in particular—are
going to have cash flow issues; there is no doubt about that. Therefore, we
announced a one-off grant of $17 500 for those businesses with a payroll of up
to $4 million. To give members some context, that is a business that employs
about 50 people. That is an important payment to make in July. Why July?
Because it flows in off the back of the commonwealth's
already announced stimulus spend, and that is the point of working closely with
the commonwealth government. I suspect
that the commonwealth government will have more to say about the July–August–September quarter in any event, but I think that will
provide strong support for those businesses. There is no doubt that the state
government has limits. Our contact with businesses that do not pay payroll tax
is, of course, limited, but we are working on that to provide support for those
smaller businesses that come in under the payroll tax threshold. We are working
with the commonwealth government to ensure that it is doing the same, so it is
not just around the demand side and consumer spending. The Premier has already
outlined our decision on fees and charges. It goes hand in glove, of course,
with the commonwealth's announcement of the $750 payment and our energy
assistance payment being front ended.
We are pulling the levers that we
can in a targeted, level-headed way; but, as the Premier outlined, this is
scalable. The responses will continue with what is firmly in mind with
supporting businesses in what may be, in my view, perhaps the toughest trading
conditions that they will see in their lifetime.
The SPEAKER : Before I go on,
Minister for Emergency Services and Minister for Mines and Petroleum, you are
no different from anyone else. You can get your water. You heard what we said,
and you are no different from anyone else.
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