TRANSCRIPT: TRIPLE M RIVERINA INTERVIEW, 13 March 2020
E&OE
Subjects: Coronavirus; Stimulus Package;
LEIGH RYAN
Now, big day yesterday in the world of government as Prime Minister Scott Morrison announced a massive stimulus package; $17.6 billion and talk to us all about that our Deputy Prime Minister and Member for the Riverina, Michael McCormack. Good morning.
MICHAEL MCCORMACK
Good morning Leigh.
LEIGH RYAN
Now, let's give us the rundown to start off; $17.6 billion of stimulus package was announced yesterday, can you break it down a little bit for us?
MICHAEL MCCORMACK
Yes, well it’s mainly in four parts supporting business investment, so people keep their jobs. It's providing cash flow assistance to help small and medium sized businesses, many in the Riverina of course, to stay in business and of course keep their employees where they are. It's targeted support for the most severely affected sectors and regions which particularly affects country areas and communities and household stimulus payments to benefit the wider economy. So, that's the four main parts. There's all sorts of measures in there and I'd encourage people to, to look at those to go online to pick up a paper or whatever they need to do. Listen to the radio, of course, and see what's in it for them. It's $17.6 billion, as you said, at the top of the program, and it's going to provide that necessary support to get people and the economy through this. We want people to stay in their jobs. We want people to have that assurance. We want people to stay calm, but we also need them to of course, keep spending money in the economy, hence the $750 stimulus payments to pensioners, social security, veteran and other income support recipients and eligible concession card holders.
LEIGH RYAN
For people who are eligible for that $750 payment. When's that likely to come through?
MICHAEL MCCORMACK
The week beginning March 31, the start of April.
LEIGH RYAN
Very good and talk to us about the money for employers because as you said, There's a lot of small to medium sized businesses around our area; $6.7 billion, and a lot of that targeted to help employees stay in work. How's that going to work?
MICHAEL MCCORMACK
Well, there's a couple of things. There's actually the $25,000 cash flow boosts – up to $25,000, a minimum payment of $2,000 – for eligible small and medium sized businesses of which there are many in the Riverina. The payment’s going to provide cash flow support to businesses with a turnover of less than $50 million. So that's most of those businesses in the Riverina that employ staff. So between the first of January 2020 and 30th of June this year, the the payment will be tax free, the measures will benefit around 700,000 or so businesses employing 7.8 million people and importantly, businesses will receive payments of 50% of their business activity statements or instalment activity statement from the 28th of April. There'll be refunds paid within 14 days. There's also that instant asset write-off; it is being extended and that's most important. The instant asset write-off, of course, has been a $30,000, it's been extended to $150,000 and extended up to, for a business from an annual turnover of up to $500 million. So that's really good; that they can buy concrete tank for a builder, a tractor for a farming business and a truck for a delivery business. So $150,000 is five times what it's been so that's going to be really important. That'll keep cash flowing around the economy and it will give businesses the confidence to be able to invest and back themselves through these times.
LEIGH RYAN
Now, I was interested to read as well, the ATO has said for businesses to reach out for tax concessions as well on a case-by-case basis. How can businesses talk to the ATO about that?
MICHAEL MCCORMACK
Well there is a hotline number but they can also go online and talk to the tax office. There's also the Australian Small Business and Family Enterprise ombudsman – if you Google as ASBFEO; it is the only thing that will come up if you type the letters in right and, look, the tax office and I find this when I was Small Business Minister, they are very receptive. They are very good, certainly during this period, they have been told to make sure that they do the right thing by business. Government wants to keep business doors open. We have to. It's absolutely necessary to keep the economy going. This coronavirus disaster; call it what you like it, hopefully it'll only be around for just a few months but it's like an impending flood. You look out the window and everything seems pretty OK now, but you've seen the images on television, you've heard the radio and announcer say it’s coming. And unfortunately, it is coming. We've got 156 cases in Australia today, three deaths unfortunately, so far, 64 cases in New South Wales so you know, it's not as bad as many other countries in the world. The Government's been ahead of the curve so far, making sure that the travel bans were put in place ahead of America actually, I have to say, for places such as China, Iran and of course, Italy has made its own self-imposition just in the last 24 hours. And of course, America has stopped travel to Europe apart from the UK. So you know, these are extraordinary times and they require extraordinary measures, and the government has been very, very forward in making sure that we've had the right measures in place at the right time. And of course, this stimulus package is an initial package. So we will continue to address the issue as it arises and what we want people to do is to maintain control, no need to panic buy such things as toilet paper and pasta and canned foods. Just be sensible and use common hygiene and the normal things that you do, wash your hands after the toilet, that will help you through.
LEIGH RYAN
Very good. Now very quickly. Can you give us an idea on what the government advice has been on what's likely to happen with coronavirus in our country? Has there been any advice from the health professionals as to what we're likely to expect or what the impact is likely to be?
MICHAEL MCCORMACK
Dr Brendan Murphy has been standing up every day and reassuring Australians that we've got the right health measures in place, we've got the right primary care but the people again need to be sensible. Of course if they are, if they do have the sort of symptoms – and it is normal flu symptoms – but if they do have those seek medical help, but particularly if they've been in contact with somebody who's come from one of those affected countries such as Iran, such as Italy or Korea, China, of course, so, if they've been in contact with somebody or they're been through there themselves then obviously they need to seek medical help if they showing symptoms and if they’re not and they feel OK but they have been in contact with somebody from one of those countries, then you know, it's called self-isolation. Stay at home. Try to do your best to stay away from other people, avoid close contact and just think of yourself but also think of others. You know, we see the best in Australia during these times, people like the Qantas crews who went and did the mercy dashes to save those people on the Diamond Princess and of course over to Wuhan itself. But we've also seen the worst in what we've witnessed with the brawls in Tamworth and Sydney shopping centres where people are fighting over toilet paper of all things.
LEIGH RYAN
It's just crazy, how it has your household situated for toilet paper, have you got enough?
MICHAEL MCCORMACK
I think we've got enough. I think we've got enough but you know, these desperate times require desperate measures. I suppose if we run out, well, there's always plenty of paper lying around. But the fact is, we need to make sure that we just be sensible and you don't need to over stock on these things, you just need to be sensible. Think of yourself certainly but think of others. It just requires common sense and decency and listen to the advice of the health officials. Dr Brendan Murphy, as I say, he is very visible, a wonderful man and very calm and reassuring. He reminds me a bit of Shane Fitzsimmons during the recent bushfire crisis, you know, these are the sort of people we need in our times in these terrible and awful times and worrying times, there's no question that people are worried and you know, people need to reconsider their travel, their travel options if they are making them but I think that might preceed itself. I think people and I think the airlines and just the lower demand might see a lot of travel curtailed forcibly not through a matter of choice in coming weeks and months.
LEIGH RYAN
Well, Deputy Prime Minister Michael McCormack, thank you for joining us.
MICHAEL MCCORMACK
I just want to do one more shout out Leigh if that is OK. I want to thank Tony, Tina and Denise Loukissas, they’ve been owning and operating that Niagara Cafe on Sheridan Street in Gundagai for many, many decades and it’s going up for sale this Saturday and it's been an absolute icon, particularly for politicians. It’s had a lot of Prime Ministers visit over the years, Chifley actually did a war cabinet meeting there back during World War II, it's been a town icon, I know the listeners up there love your station and I'm sure that the people will be very saddened at the change of ownership and the fact that the Loukissas family are moving on but just want to wish them all the best for the future.