Australian PM Morrison considers ‘Rudd era’ cash handouts to mitigate coronavirus economic fallout – Sky News

Dhwani Mehta FXStreet

Australian Prime Minister (PM) Scott Morrison revealed on Monday, his government is considering a Kevin Rudd-style cash handout as part of its multi-billion-dollar coronavirus stimulus package.

Additional points

“The Coalition will also consider dishing out hundreds of millions in cash to small businesses – most likely those with a turnover of $50 million or less - in wage subsidies to keep the economy going and attempt to keep people in jobs.

Also on the table are business tax incentives, including potentially increasing the asset write-off under which businesses with a turnover of between $10 million and $50 million are able to claim the full amount of a capital cost – like buying a van or a trailer – up to $30,000. That write-off could be increased to $50,000 for example.”

AUD/USD licks wounds

AUD/USD consolidates the sharp dive to a new 11-year low of 0.6320, as the bears take a breather above the 0.65 handle at the moment.

Despite the swift reversal, the spot is still down 1.60% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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