It's been six months now since COVID-19 started appearing in the news. Then two months ago the Government imposed a national lock-down that saw vast chunks of the Australian economy shut down. This brief recap in today's newspaper neatly captures the two weeks in March when our world dramatically changed. It's hard to believe all of this happened just two months ago:
On March 12, the government announced its first stimulus package: a $17.6-billion cash handout to pensioners and a boost for business but, as COVID-19 took hold, it was immediately apparent more would be needed.
On March 13, Prime Minister Scott Morrison announced a restriction on gatherings of more than 500 people from March 16, putting an end to live football and concerts. On March 19, Australia’s borders were declared shut, bringing migration and tourism to a dramatic halt.
On March 22, the Prime Minister announced a second $66-billion support package, including a $550 per fortnight supplement to the jobless payment, early access to super and a cash-flow boost for small business.
But, just two days later, National Cabinet met to decide a list of further shutdowns to include pubs, restaurants, cafes, gyms and beauty salons.
Then, having already designed and costed almost $100 billion worth of policies, Treasury was sent back to the drawing board; this time to design and cost a wage subsidy scheme to cover the wage bill of all industries affected by large declines in revenue as a result of virus shutdowns. It was given just four days to create and cost this new policy.
On March 30, the government’s JobKeeper program was announced. It initially estimated the program would cost $130-billion. However, the economic impact has proven less severe than anticipated. Instead of 6 million workers receiving the $1500 per fortnight payment through their employer, Treasury now estimates 3.5 million employees will get it. As a result, the JobKeeper program now looks set to cost taxpayers just $70 billion – still ranking it among the biggest government programs ever.
On March 12, the government announced its first stimulus package: a $17.6-billion cash handout to pensioners and a boost for business but, as COVID-19 took hold, it was immediately apparent more would be needed.
On March 13, Prime Minister Scott Morrison announced a restriction on gatherings of more than 500 people from March 16, putting an end to live football and concerts. On March 19, Australia’s borders were declared shut, bringing migration and tourism to a dramatic halt.
On March 22, the Prime Minister announced a second $66-billion support package, including a $550 per fortnight supplement to the jobless payment, early access to super and a cash-flow boost for small business.
But, just two days later, National Cabinet met to decide a list of further shutdowns to include pubs, restaurants, cafes, gyms and beauty salons.
Then, having already designed and costed almost $100 billion worth of policies, Treasury was sent back to the drawing board; this time to design and cost a wage subsidy scheme to cover the wage bill of all industries affected by large declines in revenue as a result of virus shutdowns. It was given just four days to create and cost this new policy.
On March 30, the government’s JobKeeper program was announced. It initially estimated the program would cost $130-billion. However, the economic impact has proven less severe than anticipated. Instead of 6 million workers receiving the $1500 per fortnight payment through their employer, Treasury now estimates 3.5 million employees will get it. As a result, the JobKeeper program now looks set to cost taxpayers just $70 billion – still ranking it among the biggest government programs ever.
2020 is rapidly becoming one for the history books.
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