Policies such as JobKeeper, Boosting Cash Flow for Employers and enhanced tax incentives for investment have reduced costs for businesses, increased household disposable income and supported aggregate demand more broadly. They have preserved employment relationships between firms and employees, and have helped otherwise viable businesses stay afloat when their revenues were markedly reduced by COVID-19 restrictions.
These measures reduced the need for many businesses to borrow. This accords with ABS surveys conducted in both October last year and February this year, in which most businesses indicated that they had sufficient funds and did not need additional finance.