Australia announced on Sunday a $38 billion plan to reduce the economic impact of the coronavirus outbreak.
Citizens were told to cancel domestic travel plans to limit the spread of virus. Gatherings of more than 10 people were banned, social and sport events involving large crowds have been cancelled. Restaurants and other businesses have had to shut down. At the time of writing, Australia has total of 2,136 cases of Covid-19 and 8 deaths.
Prime Minister Scott Morrison said:
Scott Morrison
More stronger measures will be coming and they will be coming in more localized areas to deal with outbreaks.
What that means is, what may be necessary in a part of Sydney may not be necessary at all in … other parts of the country.
Treasurer Josh Frydenberg stated that the latest AU$66 billion announced on Sunday made the government and central bank measures to support the economy to AU$189 billion, which is nearly 10% of gross domestic product.
Josh Frydenberg commented:
Josh Frydenberg
These extraordinary times require extraordinary measures and we face a global challenge like we have never faced before.
Today’s announcement will provide hope and support for millions of Australians at a time when they need it most.
Small businesses and non-profit organizations will receive cash aid of up to AU$100,000. Unemployment payment will temporarily double and pensioners will receive AU$750.
Workers with reduced income by at least 20% because of the outbreak will have access to their retirement funds early. Those facing hardships will be allowed to withdraw up to AU$20,000 over two years.
Frydenberg said that additional measures were required as the economic shock people will experience has grown than what was expected just 10 days ago. The country fears recession after a record of 29 years of economic growth.
Rent relief could also be on the way as laws to ensure home and office renters are not evicted will be discussed. At the leaders meeting Prime Minister Scott Morrison will talk over model rules with state and territory leaders at a national cabinet teleconference on Tuesday evening.
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