This article documents the considerable economic support provided to businesses by the Australian Government in response to the COVID-19 pandemic. We find that measures were associated with higher levels of business profitability and savings, a strong recovery in payroll jobs and wages, and mixed effects with respect to business dynamism. We formally evaluate the SME Cashflow Boost, finding costs per job-year saved in the vicinity of $72-83,000 ($US51-59,000) over its first year, implying between 400 and 500,000 jobyears saved over this period. Combined with results from previous studies, this suggests between 1.1 and 1.3 million job-years were saved by the SME Cashflow Boost and JobKeeper Payment over their respective first years post-announcement.

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We simulate a small open economy Two Agent New Keynesian (TANK) model featuring 'learning by doing' in production whereby changes in employment generate hysteresis in productivity and output. Credit constraints and hysteresis amplify the efficacy of Fiscal stimulus in a small open economy with a floating exchange rate and inflationtargeting central bank such that output multipliers can exceed unity; welfare multipliers can be positive; and the degree of hysteresis, output and employment multipliers match empirical evidence well. Fiscal stimulus helps reverse output hysteresis, and price-level targeting provides superior macroeconomic stabilisation compared to other simple monetary rules combined with fiscal stimulus.