Six million low income earners to receive $750 cash under Coalitions coronavirus stimulus
Six million low income earners to receive $750 cash under Coalitions coronavirus stimulus

Today, the Australian government has established a significant material incentive for all low-income citizens due to the conditions in the country . .. More than six million low-income earners will receive a $750 cash payment under a $17.6bn government stimulus package targeted at keeping Australians in work and avoiding the country’s first recession in almost 30 years.

In this regard Announcing the package on Thursday, the prime minister, Scott Morrison, said he was confident the targeted measures would be enough to “do the job” of propping up the economy, as the Coalition abandons a much-touted surplus for the current financial year and shifts it focus to maintaining economic growth. .. The stimulus boost is equivalent to 0.9% of GDP in the March quarter, and follows initial estimates from Treasury that the effect of the coronavirus downturn in the March quarter would be 0.5%, on top of a 0.2% hit from the summer bushfire crisis.

In this regard Three-quarters of the $17.6bn package will be directed to businesses, with a $6.7bn cashflow payment pegged to employee wages, $4bn tied to new investment incentives, $1.2bn to support apprentices, and a $1bn fund for hard-hit sectors such as tourism. .. Businesses will also be allowed to defer tax obligations, with the Australian Taxation Office announcing that it will offer relief to those hit hard by the downturn on a case-by-case basis.

In this regard The household stimulus will cost $4.76bn, with payments to begin flowing from 31 March. All welfare recipients and concession card holders will receive the $750 payment, including 2.4 million pensioners and those with a commonwealth seniors card. .. The government has targeted low-income earners as they are most likely to spend the stimulus payment, with Treasury understood to have estimated a 150% return to the economy for every dollar spent.

Morrison said the cash payments had a dual purpose – to benefit those who received them and to stimulate the economy.

In this regard “Frankly, it is about a cash injection into the Australian economy, which supports small businesses and supports medium businesses,” Morrison said. .. “That, in turn, supports the jobs, which means people can continue to participate positively in the economy and have greater confidence going forward.”

Facing calls to use the package to also provide sick leave for casual workers, the government has announced it will waive waiting periods for the taxpayer-funded sickness allowance, but has dismissed calls to make employer-funded sick leave mandatory.

In this regard However, the sickness allowance takes five days to process, and people forced to self-quarantine will still be subject to an asset test that will make many people ineligible.

Morrison said the package had been deliberately designed to ensure that $11bn of the $17.6bn package would be “out the door” by the end of June.