From March 2020, containing the spread of COVID-19 in Australia has involved measures directly and indirectly impacting the property sector. To lessen the economic impact, a wide array of temporary monetary, fiscal and social policies have been introduced. Those most pertinent to our industry are summarised here. 

Overall value of stimulus to date

At the start of April, stimulus packages totaled approximately $331.6 billion, or 16.6% of GDP 

Monetary policy

Over March, The Reserve Bank of Australia reduced the cash rate, and launched unconventional monetary policy

  • The RBA have reduced the cash rate to the effective lower bound of 0.25%. The RBA signaled there would be no further reductions to the cash rate, and that it would not be lifted until inflation was comfortably between 2-3%, and the labour market was trending towards full employment (which has previously been cited as an unemployment rate of 4.5%)



  • A 3-year funding facility is available to authorised deposit-taking institutions. The funding facility will have a fixed lending rate of 0.25%. Lenders may receive funding to the equivalent of 3% of the credit outstanding to households and businesses. Additional funding will be available for business lending, but not for residential mortgage lending. Treasury is supporting smaller lenders with a $15 billion advance
  • A yield target of 0.25% has been set for 3-year government bonds. The RBA will target lower rates through the purchase of various government bonds and semi-government securities. This is aimed at putting more money in the hands of investors, and the target yield may be subject to change.
  • The Australian Prudential Regulation Authority (APRA) is enabling the implementation of these policies. The regulator has postponed the implementation of further capital reforms to 2021, and has relaxed expectations of capital ratios


Fiscal policy

Federal Government initiatives announced so far total $213.6 billion

For businesses:


For households:

State fiscal stimulus

State government fiscal packages as at the end of March


New South Wales - $3.3 billion 


Victoria - $1.7 billion 


Queensland - $4 billion


South Australia - $1 billion


Western Australia - $1.60 billion

Tasmania - $985 million


Australian Capital Territory - $337 million

Northern Territory - $115 million 


The information provided in this publication is current as at 14th April 2020 and is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice.  While CoreLogic uses commercially reasonable efforts to ensure the information is current, CoreLogic does not warrant the accuracy, currency or completeness of the information and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with the Product Data.

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