Australia will double unemployment payments to support the thousands of people expected to lose their jobs due to the coronavirus pandemic. Prime Minister Scott Morrison announced a second stimulus package on Sunday, acknowledging the economic damage would be worse than anticipated.
The extra $66 billion brings the total rescue package to $189 billion, about 10 per cent of Australia's GDP. Treasurer Josh Frydenberg said, 'We now expect the economic shock to be deeper, wider, and longer.'
Those already unemployed or soon to be forced out of work will receive up to $1,100 a fortnight in Centrelink payments. The $750 payments to pensioners will also be doubled, with the first deposited on March 31 and the second on July 13.
Australians struggling on reduced incomes, especially sole traders, can withdraw up to $20,000 from their superannuation tax-free. Assets tests and waiting periods for the jobseeker allowance will be waived. The government is also launching a $40 billion loan scheme, guaranteeing 50 per cent of cheap loans from banks to struggling companies.
Small businesses can receive grants of up to $100,000 to help pay staff. Eligible businesses that withhold tax will receive a payment equal to the amount withheld, up to $100,000, with a minimum of $20,000.
