Josh Frydenberg says virus stimulus package to be unveiled soon

The federal government is working on a stimulus package to try to stem the impact of the COVID-19 crisis on the economy, Treasurer Josh Frydenberg says.

Treasurer Josh Frydenberg speaks during a press conference.

Treasurer Josh Frydenberg is still working on a stimulus package to help the economy. Source: AAP

Josh Frydenberg says a multi-billion dollar stimulus package to counter the economic impact of the coronavirus will soon be released.

The package is expected to include tax incentives to help businesses with cash flow, alongside tax deductions for new investments.

Funding will be also aimed at infrastructure spending, which normally translates to major road and rail projects.

But the treasurer said there would be no "cash splash" and the package would not damage the work done on getting the national budget back to surplus.

"It will be worth billions in the terms of impact it will have," he told Sky News.

"The package of measures will be responsible and will be scalable."

The stimulus package is expected to be unveiled next week.

Jim Chalmers.
Source: AAP

Treasury Secretary Steven Kennedy will update parliament on Thursday about the economic impact of the spread of the COVID-19 virus.

It is likely to be half a percentage hit to growth and risks plunging the economy into negative territory.

Shadow Treasurer Jim Chalmers said Labor intended to play a constructive role in helping Australia through the period.

But Dr Chalmers put the government on notice should Australia's decades-long run of continuous economic growth be broken.

"The Liberals and Nationals are now the custodians of those three decades of unbroken economic growth," he told reporters.

"Australia is being tested right now by the economic impacts of this coronavirus and the government is being tested as well."

Published 5 March 2020 at 8:08am, updated 5 March 2020 at 8:44am