The Federal Government has announced a $17.6 billion economic stimulus package in a bid to keep Australians in jobs as the economy takes a hit from the spread of coronavirus.

Key points: The Government will pump $11 billion into the economy between now and July

The Government will pump $11 billion into the economy between now and July Welfare recipients will get $750, and there will be tax breaks for small businesses

Welfare recipients will get $750, and there will be tax breaks for small businesses The Government concedes it will not deliver its forecast surplus for this financial year

Prime Minister Scott Morrison said the package would provide an immediate stimulus to the economy amid fears Australia could slip into a recession.

The package includes tax relief for small businesses, one-off cash payments for welfare recipients and money to help keep apprentices in work.

More than 6 million welfare recipients, including pensioners, carers, veterans, families, young people and jobseekers will get a one-off cash payment of $750 from March 31.

"The biggest beneficiaries of that will be pensioners," Mr Morrison said.

"They comprise around half of those who will receive those payments, but they also will be extended to those in family tax benefits, which obviously goes to those in earning households."

The one-off payments will cost the Government $4.8 billion, and Mr Morrison said he believed recipients would have the "common sense" to spend the money in ways which would benefit the economy.

"It's not for us to tell those Australians how to spend their money," Treasurer Josh Frydenberg added.

"But what we do know from experience is that they will spend that money, and that money will encourage economic activity.

"And the more economic activity that we see through the June quarter, in particular, will be important."

Mr Morrison also said casual workers who contracted COVID-19, or had to isolate themselves, would be eligible for a Newstart welfare payment while out of work.

The typical wait time to access the payment will be waived, but people will face an assets test before receiving the money.

The Government will spend $11 billion before the end of this financial year, with the remainder to be injected into the economy before July 2021.

The Government wants its stimulus to be temporary and offer an immediate boost to the economy rather than making permanent changes to the budget.

Josh Frydenberg and Scott Morrison hope their $17.6 billion economic stimulus package will prevent a recession. ( ABC News: Nick Haggarty )

Business cash payments, tax incentives

Nearly 700,000 small and medium businesses will receive cash payments of between $2,000 and $25,000 to help pay wages or hire extra staff.

The measure is the largest part of the package, and is estimated to cost $6.7 billion.

The stimulus package also includes $1.3 billion in support payments to keep apprentices in their jobs amid fears the spread of the coronavirus could have a crippling effect on employment.

On Wednesday the Government allocated $2.4 billion for a health package, including 100 pop-up coronavirus fever clinics and a new Medicare item to deliver health advice remotely.

Medium and big businesses will be encouraged to spend on equipment and other investments through an extension of the instant asset write-off, which means they can claim a tax break for what they spend.

This is currently restricted to companies with turnovers of up to $50 million, for maximum investments of $30,000.

But this will be significantly lifted, allowing companies with turnovers of up to $500 million to make assets write-offs of up to $150,000.

The stimulus package also includes a $1 billion fund to help the tourism sector.

Labor has indicated it would help the Government pass the legislation it needed to implement the stimulus package but has flagged some concerns.

Shadow Treasurer Jim Chalmers said he feared the Newstart measures might not be enough to keep casual workers at home while sick.

"We don't want Australians to have to choose between doing the right thing by their co-workers, or going to work so they can afford to live and eat," he said.

"So we want to make sure that what has been announced today is sufficient."

The Government has conceded its forecasted budget surplus won't be delivered. ( ABC News: Nick Haggarty )

Coronavirus wipes out budget surplus

Ahead of the federal election the Government championed a forecast budget surplus of $7.1 billion for this financial year.

That forecast was revised down to $5 billion in December.

Finance Minister Mathias Cormann has now confirmed that there is "obviously not going to be a surplus year in 2019-20".

In the last year, Mr Morrison had repeatedly refused to concede his budget surplus was a forecast, and yet to be delivered, having regularly insisted the budget was "back in black".

He now says the full extent of the deficit will be revealed in May's federal budget.

"The way we've designed this stimulus is to ensure that it doesn't have a fiscal hangover down the track, that it doesn't bury the budget for a decade," the Prime Minister said.

"This is all designed to put the stimulus in now, in a very efficient and effective way, to deal with the problems that are here and now, problems that we know to be the issue here in Australia."