NFF applauds $17.6 billion stimulus

The National Farmers’ Federation (NFF) has welcomed the Federal Government’s announcement of its $17.6 billion stimulus package aimed at keeping the community afloat in the current Coronavirus induced economic crisis.

"Many farmers and the communities they support, are already doing it tough from the prolonged hardship of drought and in some regions, bushfires and floods,” said NFF CEO, Tony Mahar.

"The measures in the stimulus package will benefit farm businesses, small businesses and households."

On March 12, the Morrison Government announced a $17.6 billion cash injection to help Australia weather out the economic storm, with a huge focus on small businesses and households.

As part of the package, $6.7 billion will go to boosting cash flow for employers by up to $25,000 with a minimum payment of $2000 for eligible small and medium-sized businesses. $1.3 billion will go to support small businesses to support the jobs of around 120,000 apprentices and trainees.

In addition, the instant asset write off threshold has been increased from $30,000 to $150,000 and will expand to include businesses with aggregated annual turnover of less than $500 million, up from $50 million, until 30 June 2020. Assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.

Specifically, the package will direct $1 billion to a ‘regional and community fund’ to support industries affected by the economic fallout of COVID-19 including agriculture.

"We await more details about how this investment will be distributed," Mahar said.

"The NFF hopes the stimulus will be directed to those industries and regions already directly affected by the virus, for example the seafood industry and fishing communities.”

China’s demand for high-end products such as Western Australian rock lobster, prawns and scallops, fell almost to zero soon after the virus took hold.

The Australian Bureau of Agriculture and Resource Economics and Science (ABARES) forecasts the effects of coronavirus could wipe $389 million off the bottom line of Australia’s seafood industry.

Farm businesses are also suffering from a decline in the international workforce they rely on.

"A large proportion of the agricultural sector including the horticulture, pork and grain sectors depend on seasonal workers or backpackers," Mahar said.

"We do not want to see a threat to the supply of fruits such as bananas, berries and citrus should there be a major disruption to these working visa arrangements.

"About three quarters of Australia’s agricultural output is exported.

"As the spread of the virus expands and market access and freight capacity contract, we can expect a wider negative impact on agriculture."

Households across Australia, specifically those with welfare recipients such as pensioners, social security, veteran and other income support recipients and eligible concession card holders stand to benefit from a one-off payment of $750 for each eligible recipient.

Mahar said the NFF supported the Government’s approach to ‘modest, targeted and scalable’ stimulus package.

"We are in unprecedented times and it is crucial that the Government is able to, when appropriate, step up the help on offer for those directly impacted by the economic fallout of the virus and the economy as a whole,” he said.

"Agriculture’s prosperity depends on an overall healthy economy.

"The NFF also recognises the Federal Opposition’s support for the package and for seeing that the money gets out the door as soon as possible.”