Millions of Australians will have an extra $750 in their bank from TOMORROW as part of coronavirus cash splash
- 6.5 million Australians to receive one-off cash payments as recession looms
- The stimulus package will be paid out to anyone receiving income support
- PM introduced the two-part scheme to boost the economy as COVID-19 hits
- Coronavirus symptoms: what are they and should you see a doctor?
Up to 6.5million Australians are set to get a one-off $750 payment on Tuesday in a bid to ward off a looming recession brought on by the coronavirus pandemic.
Part of the Australian Government’s two-part $17.6 billion targeted stimulus package announced by Scott Morrison on March 12, the payments will go to anyone already receiving income support.
That includes pensioners, veterans, Job seekers (Newstart), Youth Allowance recipients and more.
The money will start hitting bank accounts starting Tuesday, with a second $750 payment for welfare recipients and pensioners coming in July.
People queue for access to a Centrelink Service Centre in Sydney on March 23, 2020, as COVID-19 pandemic begins to have drastic impact on jobs.
Australian Prime Minister Scott Morrison (pictured) speaks about the two-part economic stimulus package at a press conference in Canberra on March 29, 2020.
‘Just as we have acted decisively to protect the health of the Australian people, based on the best evidence and medical advice, our support package responds to the economic challenges presented by this pandemic in a timely, proportionate and targeted way,’ the Prime Minister said when he announced the scheme.
‘Our plan will back Australian households with a stimulus payment to boost growth, bolster domestic confidence and consumption, reduce cash flow pressures for businesses and support new investments to lift productivity.
‘Australia is not immune to the global coronavirus challenge but we have already taken steps to prepare for this looming international economic crisis.’
Small, medium and not-for-profit businesses with a turnover of less than $50 million will also be eligible for a handout under the plan.
Tax-free payments from $20,000 up to $100,000 will be given out automatically through the Australian Taxation Office, to help companies retain staff between January 1 and June 30.
According to the government, this will help around 7.8 million employees at around 700,000 businesses.
‘Our targeted stimulus package will focus on keeping Australians in jobs and keeping businesses in business so we can bounce back strongly,’ Mr Morrison said.
‘The economy needs temporary help right now to bounce back better so the livelihoods of all Australians are protected.’
People queue to enter Centrelink Service Centre on March 24, 2020 in Melbourne, as all non-essential business and travel shuts down in a bid to stop the spread of COVID-19
The economic impact of COVID-19 starts to be felt as people queue for access to a Centrelink Service Centre in Sydney on March 23, 2020
Although waking up to an extra $750 will be a welcomed sight for many Australians, Westpac Bank chief economist Bill Evans has warned the generous handouts are unlikely to save Australia from a recession.
‘The Government’s Fiscal Stimulus Package is a bold initiative to bolster the Australian economy’s defences against the damage likely to be wrought by COVID-19,’ Mr Evans said.
‘However, the current domestic and global environment has deteriorated more rapidly than we had expected … despite the Government’s bold efforts the June quarter is still likely to show negative growth and Australia will experience a technical recession.’
Westpac forecasts around 800,000 job will be lost as a result of the coronavirus crisis, leading to an 11 percent unemployment rate by June.