SYDNEY - Australia will spend A$16.8 billion to extend its wage subsidies for businesses hit by the coronavirus pandemic, as a surge in new infections in the country’s southeast threatens to keep the economy in recession.
However, subsidies will be reduced under the new programme, which runs through to March 31 and is expected to cover about 1 million workers, as Prime Minister Scott Morrison’s conservative government seeks to wean the economy of fiscal support. Under scaled back subsisidies, recipients will receive A$1,200 a fortnight, while those who work less than 20 hours a week will receive A$700 every two weeks. From Jan. 1, payments will fall to A$1,000 and A$650 a fortnight, respectively.
Morrison said his government will also trim unemployment benefits. Australia in March said it would increase unemployment benefits by A$550 a fortnight until September 30, but Morrison said this will be cut by more than 50%.The extension of the fiscal stimulus eases fears that Australia would suffer a hard economic landing after September with unemployment already at a 22-year high.
But hopes for a quick recovery have been dashed as Australia struggles to contain new COVID-19 outbreaks.
Colpackham Okay
Colpackham Okay
Colpackham But what and where will Australia sell after rioting with China? ScoMosas with Mango Chutney to Modi?