ANZ cuts business rates to counter coronavirus threat

ANZ managing director, commercial banking, Isaac Rankin said the changes have been made in response to growing threat to business activity posed by the coronavirus (COVID-19) pandemic.

“This reduction will provide some immediate relief to our small business customers in particular as they deal with the challenging environment created by the global outbreak of the COVID-19 coronavirus,” he said.

ANZ’s announcement came just a day after the Prime Minister Scott Morrison released a $17.6 billion stimulus package to help stave off a potential recession.  

The government’s stimulus includes measures to support business investment and provide cash flow relief to affected businesses.

Banks, including ANZ, have stressed that they would offer additional support measures to business customers throughout the crisis, including the deferral of scheduled loan repayments, the waiving fees and charges, interest-free periods, and debt consolidation support.

CEO of the Australian Banking Association (ABA) Anna Bligh stressed that the banks are “well prepared for the challenges” presented by the outbreak.   

“Australia’s banks are strong, stable and open for business, including for any company wanting to take advantage of initiatives in the government’s stimulus package such as the increase to the threshold of the instant asset write-off from $30,000 to $150,000,” she said.

Earlier this month, lenders also slashed mortgage rates in response to the Reserve Bank of Australia’s (RBA) latest cut to the cash rate.

All four major banks and most non-majors passed the full 25 bps reductions to new and existing home loan customers.

Pepper Money is the latest lender to announce mortgage rate reductions, cutting rates by up to 50 bps across its Prime, Near-Prime, and Specialist products.

Pepper’s rate cuts apply to new customers with both principal and interest (P&I) and interest-only repayment terms.

[Related: Newcastle Permanent cut three-year fixed rates]