The federal government has announced a new $66 billion stimulus package, increasing the “safety net” for businesses affected by the coronavirus pandemic.
With non-essential business set to close, mining companies are currently allowed to continue operations.
Cash payments for small and medium businesses will now range from $20,000 up to $100,000, marking a significant increase from the $2000 to $25,000 proposed in the first stimulus package.
The payments are designed to help companies keep workers paid and employed as the mining sector bares the brunt of the effects international travel bans will have on business operations.
As part of the stimulus, the government will introduce a coronavirus small and medium enterprise (SME) guarantee scheme to push lenders in providing credit to SMEs.
Up to $20 billion out of $40 billion in SME loans will be guaranteed by the government under the scheme.
Workers facing hardship can also withdraw $10,000 of their superannuation this financial year.
The government has injected $189 billion into the economy during the coronavirus pandemic so, which tallies to 10 per cent of the total Australian economy.
“We will be focusing on those in the front line, those who will be filling the first blows of the economic impact of the coronavirus,” said Prime Minister Scott Morrison.
Small businesses account for 44 per cent of Australia’s workforce, according to an Australian Small Business and Family Enterprise report last year.