Covid-19 News Updates

Australian Grand Prix cancelled

The Australian Grand Prix scheduled to run this weekend in Melbourne will no longer go ahead because of coronavirus concerns.

The cancellation of the annual event follows confirmation that a driver from the McLaren Racing Team tested positive for Covid-19 according to a statement issued by F1, the Federation Internationale de l'Automobile (FIA) and the Australian Grand Prix Corporation.

"Following the confirmation that a member of the McLaren Racing Team has tested positive for COVID-19 and the team's decision to withdraw from the Australian Grand Prix, Formula 1 and the FIA convened a meeting of the other nine team principals on Thursday evening," says the trio.

"Those discussions concluded with a majority view of the teams that the race should not go ahead."

"We appreciate this is very disappointing news for the thousands of fans due to attend the race and all ticket holders will receive a full refund and a further announcement will be communicated in due course."

F1 says the decision was made to ensure the safety and health of drivers, crews, attendees and the wider community.

Updated at 10:40am AEDT on 13 March 2020.

Apollo and Corporate Travel Management suspend guidance

Apollo Tourism & Leisure (ASX: ATL) and Corporate Travel Management (ASX: CTD) have joined Webjet (ASX: WEB) and Helloworld (ASX: HLO) in suspending profit guidance for FY20, as the coronavirus continues to take its toll on the travel sector.

Motorhome company Apollo was previously expecting a similar profit result to its FY19 figure of $14.7 million, but the US Government's ban on European flights for 30 days has thrown a spanner in the works of North American RV travel; a major source of its revenue.

The group notes there is a risk the ban could be extended and there could be further border closures.

With Europeans making up a significant portion of Apollo's USA guests, Apollo expects cancellations to materially increase for USA travel over the next 30 days, although the USA high season is not until June to September.

While Apollo has, as expected, experienced softness in booking intake and a small increase in cancellations over recent weeks, it now anticipates cancellations to be more significant and booking intake may also be impacted.

Apollo is taking steps across the global business to mitigate the impact of Coronavirus (COVID-19) and is working with guests who need to cancel or postpone their journeys.

"In the wake of the Coronavirus (COVID-19) outbreak we are carefully reviewing operating and capex spend as well as fleet lifecycles across the globe," says Apollo managing director and CEO Luke Trouchet.

Meanwhile, Corporate Travel Management (ASX: CTD) has withdrawn its guidance as well.

In February the company said it was tracking at the lower end of its previously issued full-year guidance of between $165-175 million, and copped flak from short seller VGI Partners which claimed it blamed poor performance on the coronavirus.

Corporate Travel Management says the impact being felt now is worse than previous assumptions due to further actions from governments to close numerous borders and suspend travel to and from countries and regions.

At the same time, some companies are also deciding to ban or limit travel, leading to "flow-on erosion in client activity across all regions".

"CTM has actioned several plans to manage costs against the reduced corporate travel activity, including staff leave, shorter working weeks on proportionate pay and leave without pay, which apply across the executive team and all of our staff," the company said.

"Additional measures include a freeze on all non-essential recruitment, reduction of all discretionary expenditure and delaying non-client facing project work.

Non-executive directors and the Managing Director will take a 20% reduction in their fees and fixed remuneration respectively for the remainder of this financial year."

ATL and CTD shares were down 18.42 per cent and 4.19 per cent respectively in morning trading. 

Updated at 10:38am AEDT on 13 March 2020.

Virgin reduces capacity further

Virgin Australia (ASX: VAH) will cut its flight capacity in line with the deterioration of the global travel industry due to the spread of Covid-19.

Across the group, domestic capacity will be cut by five per cent for 2H20 which will increase to 6.2 per cent in 1H21.

While the airline is primarily an Australian domestic service, the group says it has observed increasing weakness in international forward bookings.

As a result, Virgin will reduce international capacity by eight per cent in 2H20 to meet expected demand.

Key changes are:

• Reducing the daily Brisbane to Haneda service to three times per week from 29 March until 3 May.
• Reducing the daily Sydney to LA service to five times per week from early May to early June.
• Further reducing Trans-Tasman services from a 2.6 per cent reduction to a six per cent reduction for 2H20, including the strategic reduction of frequencies on Auckland-Melbourne to daily from May and a temporary reduction on Auckland-Sydney services.

Additionally, Virgin will exit the Auckland-Tonga service on 1 May and the Auckland-Rarotonga on 21 July.

Click here for a more in-depth story on Virgin's capacity reduction.

Updated 10:15am AEDT on 13 March 2020.

Brisbane Greek festival cancelled

Brisbane's Paniyiri Greek Festival announced overnight that it has cancelled the 2020 edition of the beloved cultural event scheduled to take place on May 23 and 24.

"After close consultation with the World Health Organization, Queensland State Government and Queensland Health, the decision has been made to cancel the 2020 event for the safety of everyone involved," said Paniyiri Greek Festival on Facebook.

"We take the health of our community very seriously and are doing all we can to minimise the risk of COVID-19. Unfortunately, this has meant having to cancel our beloved Paniyiri for the first time in 44 years. We share in the disappointment that is being experienced."

Updated 9:46am AEDT on 13 March 2020.

Queensland confirms four new cases

Queensland confirms four new cases

Four new cases of Covid-19 have been confirmed in Queensland overnight.

Speaking to the ABC Queensland Premier Anastacia Palaszczuk said there are now 31 cases in Queensland, four more than confirmed on late Thursday.

Palaszczuk says the cases are confined to the south-east corner of the state.

Updated 9:43am AEDT on 13 March 2020.

Brisbane Airport numbers fared relatively well in February

The impact of a travel ban from China appears to have been less pronounced at Brisbane Airport than in Sydney or Melbourne during February, with the latest numbers showing a 7.7 decrease in international passengers.

This compares to a 17 per cent drop for Melbourne Airport and a 16.8 per cent fall in international passengers for Sydney Airport (ASX: SYD).

Brisbane Airport reports it had 34,000 fewer people flying internationally compared to the same period last year, and 19,000 fewer domestic passengers passing through representing a decline of 1.5 per cent.

Melbourne Airport had a 5.2 per cent decline in domestic travellers, while Sydney Airport's numbers fell by 4.5 per cent.

For the first nine days of March, provisional data shows Sydney has witnessed a 25 per cent reduction in international passenger traffic and a 6 per cent decrease domestically.

Chinese nationals, who were previously the second-largest traveller group to pass through Sydney Airport, fell to fifth place behind Australians, Americans, New Zealanders and Brits. 

The latest data from Brisbane Airport shows the downturn in March is expected to be more significant.

"For the first week of March, international passengers are already down 16.3 per cent compared to the same period last year, while domestic passengers are down 1.8 per cent," a spokesperson said.

"Brisbane Airport Corporation (BAC) continues to monitor the situation very closely. With the situation changing daily, it is possible more flight reductions are to come, as the coronavirus spread globally.

"BAC is working closely with our airlines, government and industry on future impacts and recovery plans."

Updated at 5pm AEDT on 12 March 2020.

Nine cordons off parts of HQ after Covid-19 case

Nine has closed off part of its Sydney headquarters in Willoughby after a Today studio guest was diagnosed with Covid-19.

The decision was made after it was revealed US actor Rita Wilson, who appeared as a guest earlier this week, had contracted the virus along with her husband Tom Hanks.

"Nine today has taken action in line with our crisis response plan around a visit to our studio by Ms Rita Wilson on Monday this week, for an appearance on Today Extra with David Campbell and Belinda Russell," a Nine spokesperson said.

"Our actions are in line with the guidelines set out by the Government and Health Authorities. Those who were in prolonged contact with Ms Wilson have been tested and are self-isolating for 14 days."

The premises are currently being thoroughly cleaned in all areas Wilson visited, and all employees have been encouraged to monitor their health and practise good hygiene.

"Tracy Grimshaw is not hosting ACA tonight as a precautionary measure since she had minor surgery last week.  Karl Stefanovic will host in her place," the spokesperson said.

"Arrangements for hosts for Today Extra are still being confirmed."

Updated at 4:30pm AEDT on 12 March 2020.

ATO to provide assistance to business affected by Covid-19

The Australian Tax Office (ATO) has announced it will implement administrative measures designed to assist Australians and businesses experiencing financial difficulty as a result of the Covid-19 pandemic.

Commissioner of Taxation Chris Jordan says businesses impacted by the coronavirus should contact the ATO to discuss relief options.

Options available to businesses impacted by Covid-19 include:

• Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
• Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
• Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

The ATO will also work with individuals experiencing financial hardship and will apply tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation.

Those impacted by Covid-19 are advised to contact the ATO to request assistance on 1800 806 218.

Updated at 4:20pm AEDT on 12 March 2020

Covid-19 travel ban extended

The Morrison Government has extended its coronavirus travel ban by an extra week following the WHO's classification of Covid-19 as a pandemic.

As reported by the ABC, foreign nationals who have been in Italy, South Korea, China or Iran will not be allowed into Australia for 14 days from the time they left those countries.

Citizens and permanent residents will be able to enter Australia from those countries on the condition that they self-isolate for 14 days on arrival.

The ABC reports the Prime Minister has asked health officials to consider extending the travel ban to all travellers from Europe.

The extension follows US President Donald Trump's announcement that all foreign nationals travelling from Europe will not be able to enter the country for 30 days.

American citizens are exempt from restrictions but will be directed to a limited number of airports where screening for Covid-19 can take place.

Updated at 3:50pm AEDT on 12 March 2020

PM announces business support package

The Morrison Government today announced a $17.6 billion economic plan to assist Australian businesses and individuals as Covid-19 hits the economy.

Prime Minister Scott Morrison says the economic stimulus package will assist up to 6.5 million Australians and 3.5 million businesses.

"Our plan will back Australian households with a stimulus payment to boost growth, bolster domestic confidence and consumption, reduce cash flow pressures for businesses and support new investments to lift productivity," says Morrison.

"Australia is not immune to the global coronavirus challenge but we have already taken steps to prepare for this looming international economic crisis."

Delivering support for business investment

• $700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. For example, 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.
• $3.2 billion to back business investment by providing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.

"These measures start today and will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees or 3 in every 4 workers," says the Morrison Government.

"The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the short term."

Cash flow assistance for businesses

• $6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. This measure will benefit around 690,000 businesses employing around 7.8 million people. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
• $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice's or trainee's wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

Updated at 2:45pm AEDT on 12 March 2020.