Australia to Boost Jobless Support in Stimulus Plan, AFR Says
Australia to Boost Jobless Support in Stimulus Plan, AFR Says
(Bloomberg) -- Prime Minister Scott Morrison will introduce new income support for the jobless as part of a second stimulus package to prop up the economy as the coronavirus outbreak bites, the Australian Financial Review reported.
The new transitional income support will be a temporary wage that’s higher than current unemployment benefit, and will be a central feature of the new fiscal plan, the newspaper said, without citing sources. The plan, which will also include survival assistance for small and medium businesses, will dwarf the A$17.6 billion ($10.2 billion) suite of economic measures announced last week, according to the report.
Separately, the Australian newspaper reported the government is considering a loan guarantee to keep businesses afloat -- a measure that might see taxpayers underwriting lending to small and medium-sized firms facing collapse. Two options being considered are a British model where small and medium enterprises are guaranteed as much as 330 billion pounds ($383 billion), or a New Zealand model which involves cash payments to businesses to help them keep staff, according to the report.
Morrison’s government has ramped up its response to the crisis, warning Australians not to travel abroad, barring non-essential gatherings of 100 people or more, declaring a human biosecurity emergency to enable authorities to respond to the outbreak, and extending A$715 million in relief to the airline industry.
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