Invest
Banking association backs latest government stimulus
A banking industry association has welcomed the federal government’s latest attempt to kick-start the economy, which involves a phased rollout of a range of new grants and loan programs.
Banking association backs latest government stimulus
A banking industry association has welcomed the federal government’s latest attempt to kick-start the economy, which involves a phased rollout of a range of new grants and loan programs.
The Morrison government has announced the launch of a new $250-million stimulus package as part of its JobMaker program, aimed at breathing life back into the “creative economy”, which is one of the sectors most heavily impacted by the pandemic-induced shutdown.
The “targeted” stimulus program involves a range of new grant and loan schemes phased in over the next 12 months to rejuvenate the $1.2 billion entertainment, arts and screen sectors, which employ approximately 600,000 Australians.
The stimulus package includes:
- $75 million in grant funding in 2020-21 through the “Restart Investment to Sustain and Expand (RISE) Fund” to provide capital to support production and event businesses;
- $90 million in concessional government-backed “Show Starter” loans to assist creative economy businesses to fund new projects, delivered through commercial banks;
- $50 million for a “Temporary Interruption Fund”, administered by Screen Australia, to help local film and television producers secure finance;
- $35 million to provide direct financial assistance to support Commonwealth-funded arts and culture organisations; and
- the establishment of a ministerial taskforce to partner with the government and the Australia Council to implement the JobMaker plan for the creative economy.
Following the announcement, Prime Minister Scott Morrison commented: “Our JobMaker plan is getting their show back on the road to get their workers back in jobs.”
“We’re delivering the capital these businesses need so they can start working again and support the hundreds of thousands of Australians who make their living in the creative economy.
“These measures will support a broad range of jobs from performers, artists and roadies, to front of house staff and many who work behind the scenes, while assisting related parts of the broader economy, such as tourism and hospitality.”
He added: “Many in the sector will find a new way to operate while the current social distancing measures remain in place, and while that won’t be easy, I know there’s a strong desire among all Australians to see the return of gigs, performances and events.”
The Australian Banking Association (ABA) has welcomed the new package, with members awaiting further detail regarding the $90-million concessional loans program.
“Banks look forward to the government releasing guidelines of the new concessional loan program in the coming weeks. Once the guidelines are received, applications will be assessed on a case-by-case basis.”
“In the meantime, businesses in the creative industry who are looking to take advantage of the government-backed concessional loans should get in touch with their bank and flag their interest in accessing the program,” the industry stated.
This is the latest of several joint ventures between the federal government and credit institutions, which include the First Home Loan Deposit Scheme, the Australian Business Securitisation Fund and the SME Guarantee Scheme.
Lenders are currently benefiting from the low-cost business funding via the Reserve Bank of Australia’s $90-billion term funding facility, which will expire at the end of September.
About the author
About the author
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more