Treasurer Josh Frydenberg says the country's success dealing with the health impact of the coronavirus is delivering an economic benefit.Credit:Alex Ellinghausen
He signalled further work with the banking sector to ensure businesses and consumers were protected in coming months.
"We came into this crisis from a position of economic strength and our government will continue to do whatever it takes to keep Australians in jobs and businesses in business,"he said.
The scope of the economic challenge facing the government through the second half of the year was clear in capital expenditure figures released by the Australian Bureau of Statistics that show businesses slashing their spending plans.
Capital spending in the March quarter dropped by a lower-than-expected 1.6 per cent but firms cut their expected spending by 4 per cent for the current financial year and 9 per cent for 2020-21. The downgrade for next year was the biggest since the mid-1970s.
A separate ABS survey found 72 per cent of businesses had less revenue because of the pandemic while one in 10 had been forced to increase borrowings. Half had cut staff hours while almost a quarter had reduced employee numbers.
The national cabinet meets on Friday,with Prime Minister Scott Morrison keen to move discussion towards the economic agenda,including federation reform. It will also discuss public transport safety as governments grapple with social-distancing requirements on buses,trains and trams.