Australia's federal government is preparing a second economic stimulus package worth $1 billion to mitigate the effects of the coronavirus pandemic, with a focus on preserving jobs and keeping businesses afloat. Finance Minister Mathias Cormann confirmed the package will be significant, following the $17.6 billion support announced last week. It is expected to be unveiled in the coming days and passed into law when parliament resumes next week.
Senator Cormann warned that the economic downturn could last up to nine months, as countries close borders and industries suffer. 'The extent of the economic impact has been accelerating significantly,' he told Sky News. The government aims to cushion the blow so the economy can eventually recover.
The Reserve Bank is anticipated to cut the cash rate to 0.25 per cent on Thursday, with Governor Philip Lowe delivering an online speech after the announcement. The first stimulus package included $750 one-off payments for pensioners and welfare recipients, and grants of up to $25,000 for small businesses.
The Australian Chamber of Commerce and Industry has recommended measures such as help for businesses to retain employees and concessional loans to ease cash flow constraints. Small business ombudsman Kate Carnell urged the inclusion of sole traders, who cannot access the current grants. Labor Senator Penny Wong called for comprehensive support for casual workers, who face difficult choices between isolation and earning a living.
Prime Minister Scott Morrison warned the crisis could last at least six months, dismissing the idea of a quick fix. He also condemned panic-buying and the spread of false information on social media, urging Australians to rely on official sources. 'There is no two-week answer to what we're confronting,' he said.
