Covid-19 News Updates

NSW emergency Bill proposes new police enforcement powers, lifting Easter trading restrictions

A raft of legislative measures designed to tackle the spread of Covid-19 are on the table in New South Wales after the State Government announced an emergency Bill to Parliament today.

The proposed amendments will empower police to take action on suspected breaches of Covid-19 public health orders (like breaking quarantine), allowing supermarkets to open over the Easter long weekend and ANZAC Day this year.

The bill also proposes removing red tape for developments designed to protect the health of the community.

"Our number one priority is the health and safety of the people of NSW," says NSW Attorney General Mark Speakman.

"These necessary changes will mean that essential public amenities can continue to operate effectively while maintaining the wellbeing of our frontline workers and the broader public."

The proposed 'COVID-19 Legislation Amendment (Emergency Measures) Bill' would make the following changes:

Health:

The proposed health amendments empower police to take immediate action on suspected breaches of COVID-19 public health orders, including returning those in breach to their residence or place of quarantine.

The Mental Health Tribunal will be able to conduct inquiries by telephone, adjourn an inquiry for 28 days (up from 14 days) and extend existing community treatment orders for a further three months.

Retail:

In response to panic buying and stockpiling, an amendment to the Retail Trading Act will allow supermarkets to stock their shelves and trade throughout the Easter long weekend and ANZAC Day this year, ensuring food and other essential items are available at standard retail prices.

When combined with the decision to lift the supermarket delivery curfew, customers should have greater confidence that essential goods will be available from well-known, trusted suppliers.

The Bill will also protect staff from being compelled to work on these additional days; it will be their choice to work and earn additional income, or to enjoy the holidays.

Planning:

Amendments to the Environmental Planning and Assessment Act will ensure that any development that protects the health, welfare and safety of the community during the pandemic can proceed without the normal development approvals.

Justice:

Amendments to the Criminal Procedure Act, the Evidence (Audio and Audio Visual Links) Act, the Crimes (Domestic and Personal Violence) Act and the Jury Act aim to ensure NSW courts can continue to deliver justice with fewer people required to physically attend court.

The Supreme and District Courts will have greater discretion to order judge-alone trials reducing the need to summon large numbers of potential jurors. Vulnerable people will be exempt from jury summons.

A greater reliance on technology, including increased use of audio visual links and pre-recording evidence of key witnesses, will also help maintain social distancing in courtrooms, as will the extension of provisional Apprehended Domestic Violence Orders from 28 days to six months.

Corrections:

Amendments to the Crimes (Administration of Sentences) Act will create a power for the Governor to make Regulations determining a class of offenders for potential conditional release on parole.

These extraordinary measures are only to be used to respond to the threat of COVID-19, and would allow the Commissioner of Corrective Services to prioritise vulnerable offenders and others who pose a low risk to the community for consideration for conditional release.

Offenders sentenced for the most serious offences cannot be released under these changes.

Any conditional release would be subject to strict parole conditions, as well as any other requirements the Commissioner considers appropriate, including home detention, pre-approved schedule of movements and electronic monitoring.

In addition, the Commissioner may prohibit or restrict any person from entering or visiting correctional facilities.

Local Government:

The Local Government Act is being amended to allow councils to hold official meetings electronically, rather than physically.

The Act is also being amended to give the Minister for Local Government the power to postpone the September council elections for 12 months, with a possible further extension to 31 December 2021.

Community Services:

More than 100,000 Working With Children Check (WWCC) clearances are due to expire in the next six months. This includes teachers and medical staff who require a WWCC.

Changes to the Child Protection (Working with Children) Act will enable the Children's Guardian to extend clearances where appropriate to help prevent any disruption to services because of COVID-19.

Updated at 2:46pm AEDT on 24 March 2020.

Trials advancing for Covid-19 drug and vaccine research

The Walter and Eliza Hall Institute of Medical Research in Melbourne has recently given the Federal Government a proposal for preventative treatment options against Covid-19.

Federal Health Minister Greg Hunt (pictured) revealed the proposal in a press conference today, explaining it would be considered immediately.

"I am hopeful that within the next 48 hours that they will have provided a strong case, but I am very predisposed to accept that," Hunt said.

"We've opened up the $13 million round for proposals with regards to antivirals, so suppressing the effects and hastening the treatment.

"I have not previously heard until now of the potential for possible prevention, but it's very heartening that the Walter and Eliza Hall Institute has put this forward, and in addition to that, respiratory medicine which is about making sure that the process of, in many cases, effectively flooding the lungs is limited."

In a statement given to Business News Australia, a spokesperson for the institute said a proposal had been made for a clinical trial with the anti-malarial drug hydroxychloroquine for high-risk health workers.

The institute plans to invite doctors, nurses and other health workers across hospital departments who are at risk of acquiring infection to participate.

"Health care workers are at the front line of the COVID-19 pandemic, and their exposure to the virus increases their risk of infection with SARS-CoV-2 - the virus that causes COVID-19 disease," the spokesperson said.

"We are targeting this group with the goal of reducing the impact on the health care work force so they are able to care for sick patients.

"Beyond personal protective equipment, evidence is emerging that the drug hydroxychloroquine, used for more than 70 years to treat autoimmune conditions such as lupus, has clinically relevant antiviral activity that could prevent COVID-19."

Trial participants would be provided with the drug for four months to prevent Covid-19, with the trial set to include 2,250 people of whom half would be on the drug while the other half take a placebo.

"The clinical study is a collaborative effort with major hospitals across Victoria," the spokesperson said.

"We have identified and engaged principal investigators including infectious disease physicians and emergency department doctors at The Royal Melbourne Hospital, St Vincent's, Austin, Alfred, Monash, Royal Children's Hospital and Barwon Health.

"The proposal is still being considered and, if successful, is expected to begin in the near future, following receipt of the appropriate ethics approvals."

Hunt said the Federal Government had joined the Queensland Government to support clinical vaccine trials for Covid-19 at the University of Queensland. 

Yesterday it was announced the Queensland Government would allocate $10 million and the Australian Government had pledged $3 million to the project, which is led by UQ's School of Chemistry and Molecular Biosciences. 

A further $4 million has come from philanthropic contributions. 

UQ is the only Australian organisation tasked by the Coalition for Epidemic Preparedness Innovations (CEPI) to develop a vaccine against the novel coronavirus, and the funding announced today is an important extension of CEPI's ongoing financial support.

CEPI is the same organisation that is supporting a Covid-19 vaccine trial in Seattle, Washington State in the US.

Vice-Chancellor and President Professor Peter Høj said the funding would provide additional critical support to UQ and partners such as the Doherty Institute and CSIRO in the analysis of vaccine efficacy.

Høj highlighted a drive to commence clinical trials on the vaccine as early as July in Queensland.

"Importantly, the funding will also support advancing large-scale manufacture with industry partners both locally and overseas," Professor Høj said.

"We know the importance of having a vaccine to protect against influenza, and it is vital for us to be ready to prevent future escalations of COVID-19."

When asked about the US trialling of drugs as treatment for thecoronavirus, Hunt today said trials in Australia would be expanded and could potentially include both an HIV drug and the anti-malarial drug Hexachloroquin.

Updated at 1:31pm AEDT on 24 March 2020.

Queensland Government to halt and refund payroll tax as part of $4 billion package

The Queensland Government has today announced the biggest single relief package of any Australian state or territory, putting forward $4 billion to support businesses, households and the health sector.

Deputy Premier and Treasurer Jackie Trad (pictured) says two months worth of payroll tax will be refunded to businesses impacted by Covid-19, while SMEs will have a three-month payroll tax holiday plus a six-month deferral.

She notes the $4 billion package includes $2.5 billion for protecting Queensland businesses.

"I've been engaging with Queensland industry and business and we've taken on board what they've said," says Trad.

"Combined with the payroll tax deferrals we've already announced, it means no Queensland business impacted by Covid-19 will need to make a payroll tax payment this year."

The $2.5 billion business package includes $500 million for assisting workers who lose their jobs or incomes, and to help them find jobs in industries that are vital to getting the state through this crisis - health care, agriculture, food production, transport, cleaning and mining.

"We're waiving liquor licencing fees for venues that have had to close their doors, providing rent relief for businesses who rent premises from the state government and giving sole traders, small and medium businesses a $500 rebate on their power bill for this year," she says.

Premier Annastacia Palaszczuk says the measures are an unprecedented response to an unprecedented crisis.

"To date, this is the biggest single relief package assembled by any state or territory," the Premier says.

"Our society will go through the most difficult period most of us have ever experienced, but I am determined my Government will support Queenslanders through it."

Minister for Health Steven Miles said protecting the health of Queenslanders is the Palaszczuk Government's number one priority.as we navigate through this pandemic.

"We are working to reduce the spread of the virus, but also to ensure we have enough capacity in the health system to support those who need intensive treatment," says Miles .

The State Government will invest an extra $1.2 billion to expand:

• fever clinics;
• emergency department capacity;
• acute care services; and
• regional aeromedical services for our remote communities.

Minister for Employment and Small Business Shannon Fentiman says today's stimulus package is in addition to recently announced initiatives, including the dedicated small business hotline (1300 654 687) which has seen around 2000 business contacts so far.

"We know our businesses are doing it incredibly tough right now. This package is designed to support themes keep their doors open through this crisis and keep their staff employed," says Fentiman.

"On top of our earlier measures including $500 million in concessional loans and our initial coronavirus assistance package last month, this takes our support package for Queensland workers and businesses to more than $3 billion.

"We will keep talking to businesses and unions and continue to work with the Federal Government to see what further measures can be taken to protect the jobs of Queenslanders."

The Queensland Government is following in the footsteps of Victoria who just yesterday announced a similar business support package worth $1.7 billion.

Like Trad's plan the Victorian stimulus package includes full payroll tax refunds for FY20 to SMES with payroll of less than $3 million.

Payments will begin flowing soon and will save eligible businesses up to $113,975 per year.

The same eligible businesses will be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021, freeing up a further $83 million in cashflow.

Updated at 12:56 AEDT on 24 March 2020.

Dentists urged to defer non-urgent treatments for vulnerable patients

As practically every sector of the economy seeks out ways to reduce the risk of Covid-19 transmission, the Australian Dental Association (ADA) has put out recommendations that are expected to chip into practitioners' bottom lines.

The ADA recommends all non-urgent dental treatments be deferred for patients over the age of 70, or those with chronic disease or are immunocompromised.

The association also suggests dentists advise patients attend alone or only bring minimal additional companions.

"Consider longer appointments to allow enough time between treatments to enable additional infection control measures including environmental cleaning," the ADA says.

"Consider staggering patient appointments to minimise patient contact in the waiting room, or if there is a car park on site, ask patients to wait in their cars and call the practice upon arrival."

Click here for the full list of guidelines.

Pacific Smiles Group (ASX: PSQ) expects the reduction will negatively impact on its patient fee income in the coming months, although year-to-date patient fee growth was up 7.9 per cent as of 22 March.

This compares to a growth rate of 15 per cent as at 15 February.

The company was previously forecasting a 15 per cent uplift in its underlying EBITDA result for FY20, but the Covid-19 impact has thrown a spanner in the works, leading Pacific to withdraw its guidance.

"New guidance will be issued when there is an adequate level of visibility into the impact of Covid-19," the group said, noting a cash position of $18.7 million and net debt of approximately $11.3 million.

The PSQ share price remained unchanged at the time of writing, however shares have lost more than half their value since 20 February.

1300 Smiles (ASX: ONT) has not yet responded to the ADA's announcement but its shares were down 2.69 per cent this morning and have lost around a quarter of their value over the past month.

On 10 March, 1300 Smiles advised it had not been affected by any shortage of face masks, citing an "ample supply" of health and safety supplies with all of its facilities operating normally.

Another ASX-listed dental company Smiles Inclusive (ASX: SIL), which has been experiencing financial strife for the past 18 months and has been raising capital to stay afloat, is also yet to provide an update following the ADA's recommendations.

Smiles shares have been suspended from quotation since early this month, and yesterday the company announced two new appointments: Michelle Aquilina (formerly CEO of Primary Dental) as new deputy chief executive officer; and Mark O'Brien as general manager of operations.

Updated at 12:05pm AEDT on 24 March.

Bread and pizza bring in more dough for Retail Food Group

The Covid-19 pandemic has led to mixed results across Retail Food Group's (ASX: RFG) different businesses, with positive signs over the past fortnight for Crust and Pizza Capers stores, bakery franchise Brumby's, and Di Bella Coffee's e-commerce and grocery divisions.

On the flipside, limitations on restaurants and cafés are expected to negatively impact Di Bella Coffee's retail customer network overall, as well as Donut King outlets.

The company is also gearing up for a reduced customer count across its domestic franchise network; a trend RFG expects will likely be more pronounced amongst outlets operating within shopping centres.

Around 200 of RFG's international outlets have also been temporarily, including 29 in the US.

The situation has led the company to withdraw its FY20 EBITDA guidance of $42-46 million.

RFG executive chairman Peter George highlights increased demand for bread and bakery products is driving strong sales at Brumby's, while home delivery services demand has led to an uplift for the company's quick service restaurant (QSR) division which includes Crust and Pizza Capers.

"Our coffee and bakery brands are all delivering compelling value deals, bundling, grab'n'go, and takehome promotions, and have all now partnered with aggregators to capitalize on the home delivery opportunity," says George.

"Crust and Pizza Capers have quickly rolled out a series of value deals to the broader mass market as well as a contactless delivery promise.

"To date we have only experienced a handful of temporary domestic outlet closures which are attributable to the coronavirus, however some of our master franchise partners and the USA network have indicated more direct impacts on trading as a consequence of stricter health measures within their territories."

George highlighted a commitment to supporting franchise and master franchise partners. This includes "operational modifications to meet changing circumstances, vigorous representation of their interests with landlords, supply chain management, and other initiatives designed to provide direct support".

"However, given the current significant uncertainty and the speed of change, it is difficult to reliably predict future activity and outcomes," he says.

The group has also adopted short-term strategies including realigning promotional activities, workforce planning initiatives to reduce payroll expense, a deferral of non-essential capital expenditure and projects, a recruitment freeze and ceasing non-essential travel.

"Whilst it remains premature to make reliable judgments, we anticipate there will be a growing need for RFG to provide additional financial and other support to its franchise community as the Covid-19 situation develops

"The strategies we are implementing, when coupled with RFG's enhanced balance sheet following the Company's recent recapitalisation, provide the Group with increased scope and capacity to respond to the unique set of challenges and evolving retail landscape in which its retail franchise network operates."

Elsewhere in food retail, yesterday roadside convenience restaurant operator Oliver's Real Food (ASX: OLI) announced the temporary suspension of operations four four weeks.

The decision was based on the government's advice to cancel all unnecessary travel arrangements and shut all non-essential services.

The group said it would continue to closely monitor the situation to seek to re-open its stores as soon as possible.

"The most important thing to focus on right now, is that we protect the health and safety of our staff and customers and that we all get through this in order to preserve our business and as many jobs as possible," says Oliver's CEO and founder Jason Gunn.

"Given our concern for the safety of our staff and customers, and the Government's mandate for people to cancel all unnecessary travel and to shut non-essential services, we feel we have no choice other than to cease trading our stores temporarily.

"We remain committed to providing employment for all of our team when we recommence trading."

Updated at 11:28am AEDT on 24 March 2020.

ACCC authorises supermarket coordination measures to ensure supply

With panic buyers and hoarders clearing our supermarket shelves, the competition watchdog has authorised supermarkets to coordinate on ensuring consistent and reliable supply.

The Australian Competition and Consumer Commission's (ACCC) interim authorisation will allow supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers.

The watchdog hopes this will ensure the supply and equitable distribution of fresh food, groceries and other household items.

Benefits from the measure are expected to flow to those who are vulnerable or living in rural or remote areas.

Supermarkets will not be allowed to discuss and agree on retail prices for products under the interim authorisation.

The authorisation applies to Coles, Woolworths, Aldi and Metcash, as well as any other grocery retailer wishing to participate in coordination efforts.

Supermarkets will be protected from any court action for conduct that might otherwise raise concerns under the competitive provisions under the Competition and Consumer Act 2010.

"Australia's supermarkets have experienced unprecedented demand for groceries in recent weeks, both in store and online, which has led to shortages of some products and disruption to delivery services," says ACCC chair Rod Sims.

"This is essentially due to unnecessary panic buying, and the logistics challenge this presents, rather than an underlying supply problem."

"We recognise and appreciate that individual supermarket chains have already taken a number of important steps to mitigate the many issues caused by panic buying. We believe allowing these businesses to work together to discuss further solutions is appropriate and necessary at this time."

The measures come as Australia hits 1885 total confirmed cases of Covid-19.

Most of the cases are in New South Wales (818 total), followed by Victoria (411), Queensland (296), Western Australia (140), South Australia (134), Tasmania (27), the Australian Capital Territory (32) and the Northern Territory (4).

Seven deaths have been recorded to date.

Coles extends Community Hour

Coles is extending two of its daily Community Hour shopping periods per week to emergency services and healthcare workers.

The first hour of trade on Tuesdays and Thursdays from 7am to 8am will be for emergency services and healthcare workers including doctors, nurses, paramedics, hospital and ambulance staff, police, firefighters, and emergency service workers who hold an AHPRA card, have a workplace ID or are wearing their uniform.

Monday, Wednesday and Friday Coles Community Hours will continue to be dedicated to vulnerable and elderly customers who hold a government-issued Pensioner Concession Card, Commonwealth Seniors Health Card, Companion Card, Seniors Card, Disability Card and Health Care Card.

Updated at 11:24am AEDT on 24 March 2020.

Seven West Media withdraws guidance as sports revenue dissipates

The suspension of the AFL season and the potential postponement of the 2020 Tokyo Olympic Games is expected to cut into Seven West Media's (ASX: SWM) revenue for FY20.

As such, the company has withdrawn earnings guidance for the financial year.

"Likewise, local productions are also facing challenges with COVID-19 issues, and our teams are working tirelessly to deliver on commitments."

SWM says it has implemented business continuity plans over the last two weeks including establishing remote working for the majority of staff.

Southern Cross Austero parent Southern Cross Media (ASX: SCA) has gone into a trading halt this morning.

The company says a suspension from trade is necessary to enable SCA to assess the impacts of Covid-19 on its business. 

Updated 9.35am AEDT on 24 March 2020.

Michael Hill to shut down entire store network

Jewellery retailer Michael Hill (ASX: MHJ) will close all stores in Australia and New Zealand indefinitely as consumer sentiment nosedives.

In a statement to the ASX Michael Hill says the current conduct of its business is not in line with social distancing guidelines, and immediately shutting down its physical store network is in the best interests of staff and customers.

The group's Canadian store network was suspended on 20 March this will now be for an indefinite period.

Michael Hill's e-commerce business will continue as usual.

In all markets employees will be stood down with access to leave entitlements while government support schemes are assessed.

On 25 February, the company announced an interim dividend of 1.5c per share, with an exdividend date of 12 March 2020. In light of expected interruptions to trade the Board has decided to defer payment of that dividend for a period of six months.

"Whilst it is clear that the suspension of our store networks is necessary for the safety and wellbeing of our people and our customers we know also that this will be a time of great uncertainty for them too, and we are doing our best to provide them with the support that they need through this difficult time," says Michael Hill chair Emma Hill.

Updated at 8.37am AEDT on 24 March 2020.

Queensland to impose border restrictions

Queensland will follow the lead of South Australia, Western Australia, Tasmania and the Northern Territory by imposing border restrictions.

As announced by Premier Annastacia Palaszczuk on Twitter the Queensland Government will force anyone entering the State to quarantine themselves for 14 days after arrival.

These new measures will come into force on midnight Wednesday 25 March.

Queensland's Disaster Management Committee will meet tomorrow to finalise the details of the restrictions and what exemptions will come into play. 

Updated 3:14pm AEDT on 23 March 2020.

Regulators ASIC and APRA make Covid-19 the top priority

Australian regulators will put aside consultations on non-essential matters as priorities are recalibrated to tackle the challenges posed by the coronavirus.

The Australian Securities and Investments Commission (ASIC) will be predominantly focused on the issue until at least 30 September, although it will also afford priority to matters where there is the risk of significant consumer harm, serious breaches of the law, risks to market integrity or time sensitive issues.

ASIC emphasises it is committed to working constructively and pragmatically with the firms it regulates, whilst mindful they may encounter difficulties in complying with their regulatory obligations due to the impact of Covid-19.

"ASIC has immediately suspended a number of near-term activities which are not time-critical," the regulator states.

"These include consultation, regulatory reports and reviews, such as the ASIC report on executive remuneration, updated internal dispute resolution guidance and a consultation paper on managed discretionary accounts.

"ASIC will also suspend its enhanced on site supervisory work such as the Close and Continuous Monitoring Program."

The regulator adds relief or waivers from regulatory requirements will also be provided where warranted, for example in relation to secondary capital raisings and audits.

"ASIC has already indicated a 'take no action' stance in relation to the timing of AGMs until 31 July and the conduct of AGMs by electronic means. 

"ASIC will also work with financial institutions to further accelerate the payment of outstanding remediation to customers. ASIC will take account of the circumstances in which lenders, acting reasonably, are currently operating when administering the law."

Key business as usual functions will be maintained including registry operations and services, receipt of whistleblower, breach and misconduct reports and general contact points for industry.

Meanwhile, the Australian Prudential Regulation Authority (APRA) has suspended the majority of its planned policy and supervision initiatives in response to the impact of the virus.

The decision is intended to allow APRA-regulated entities to dedicate time and resources to maintaining their operations and supporting customers, while also enabling APRA to intensify its focus on monitoring and responding to the impact of a rapidly changing environment on entities' financial and operational capacity.

APRA is therefore suspending all substantive public consultations and actions to finalise revisions to the prudential framework that are currently underway or upcoming, including consultations on prudential and reporting standards.

The regulator's refocused supervision effort will involve frequent communication with entities, monitoring key financial settings, such as capital and liquidity, and responding accordingly. These engagements will be conducted virtually, unless absolutely necessary, and will continue as long as necessary.

"Australia's financial system is strong and resilient, and a key reason is that APRA's current prudential framework is fundamentally sound and incorporates international best practice," says Byres.

"APRA set out an expansive policy and supervision agenda in January, but right now it is more important that banks, insurers and superannuation trustees as well as APRA devote their energy and resources to responding to the impact of Covid-19.

"We will be working with financial institutions to balance the need for timely data and information on current conditions with institutions' ability to effectively manage their own response. Given the rapidly evolving environment in which everyone is operating, we will continue to closely monitor the extent and impact of COVID-19 on APRA-regulated entities to consider if any further modifications to our supervisory and policy activities are necessary."

Updated at 13:20pm AEDT on 23 March 2020.