Loading This week the OECD downgraded global growth by 0.5 percentage points. It said it believes the Australian economy will be one of the worst affected by the outbreak, due to the nation's close financial links to China. It slashed Australia's expected growth for 2020 to 1.8 per cent from 2.3 per cent. The business sector has been pushing the government for a year to look at a type of investment allowance, similar to that proposed by the Labor Party ahead of the election, as a way to lift capital spending. Mr Frydenberg said the investment allowance was "under very serious consideration".

"This is something that the business community has asked for and if you look abroad some other countries have put in place fiscal responses which include support for business and investment," he said. Loading "We want, obviously, Australian businesses to get this support through this economic shock. But when we are over this economic shock we want the Australian economy to be stronger, we want to have greater productivity, and investment is a key part of that." The government has been keen to make clear it will not engage in cash handouts which were a feature of the response by the Rudd government to the global financial crisis. Those cash handouts went to all low income groups.

Mr Frydenberg said the government was aware of the pressures facing self-funded retirees, noting the government had last year lowered deeming rates - the assumed returns on investments - in a move that would cost about $600 million. Support for self-funded retirees through a change to the deeming rate is expected to form part of the Morrison government's response to the coronavirus outbreak. Credit:James Alcock He said with interest rates falling even further, another change in deeming rates was likely. "We are now having another look at the deeming rate. We do recognise that both depositors and also borrowers are affected [by rate changes]," he said. The Treasurer said the national accounts for December showed the economy was not softening at the end of the year.