Australia extends job support to businesses hit by coronavirus pandemic

According to reports, Australia will spend $11.8 billion to extend its wage subsidies for businesses hit by the novel coronavirus. There has been a surge in the country’s southeast part that will be the reason to keep the economy in recession.There can be a hard end to the current A$70 billion scheme which was scheduled for September 30 as it has been extended for six months. This can contribute to one of the major reasons for recession in Australia, in the last three decades.

Economic measures

In an attempt to wean the economy of fiscal support, the new programme will run till March 28, 2021 with the aim of covering 1 million workers. The subsidies will be reduced under the new programme. Scott Morrison, the Prime Minister of Australia said, it has to scale down and work without these supports because they are not enduring. He added, they cannot be permanent as they were not designed to be permanent. 

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The support programme of Australia which was launched in March covered all the workers, including those who worked only in the casual shifts. It was launched with fortnightly payments for workers with affected businesses of A$1590. Under the new programme, recipients will receive A$1,200 a fortnight. Those who work less than 20 hours a week will receive A$700 every two weeks. However, from Jan. 1, payments will fall to A$1,000 and A$650 a fortnight, respectively. 

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Reports suggest that the wage supplements have helped 3.5 million Australians. Prime Minister Morrison said that changes were essential in order to support the economy. This should be done by striking a balance and not overpaying the casual workers. He added, unemployment benefits will also be trimmed. These were increased in March by A$550 a fortnight until September 30. Australia’s Central Bank supported the wage programme and the unemployment support.

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