The Times Australia
The Times News

.

Morrison shakes money tree again in bid to avoid second recession

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra
Morrison shakes money tree again in bid to avoid second recession

As NSW on Wednesday extended its lockdown for another month and the federal government shelled out more money, it was as if we were back in 2020 and Victoria’s long incarceration.

Thankfully, one big difference is that the Sydney outbreak, where the latest figure is 177 new locally acquired cases, hasn’t had (at least so far) a high death rate.

Some deaths are occurring, including a woman in her 30s, but the nursing homes now seem substantially protected, although there remains concern immunisation of aged care workers has a long way to go.

In its latest funding, the federal government has resisted calls for the reinstatement of JobKeeper, but there is help for both individuals and businesses.

Scott Morrison announced the maximum COVID disaster payment for workers who lose hours would rise from $600 to a maximum of $750 (the original JobKeeper level). There will also be $200 for people on welfare payments who lose more than eight hours work.

The Prime Minister argued JobKeeper did not have the flexibility now required.

JobKeeper was “not the right solution for the problems we have now,” he told his news conference (held at The Lodge, where he’s isolating, with reporters clutching umbrellas).

“What we are doing now is faster [paying the money direct to workers rather than through the employers], it’s more effective, it’s more targeted, it’s getting help where it is needed far more quickly.

"We’re not dealing with a pandemic outbreak across the whole country.

"What we need now is the focused effort on where the need is right now. And so it can be turned on and off to the extent that we have outbreaks.

"JobKeeper was a great scheme. But you don’t play last year’s grand final this year. You deal with this year’s challenges.”

The cost of boosting the disaster payment and the welfare top up will depend on how long the NSW lockdown lasts – and what other (if any) future lockdowns occur there or elsewhere.

Under an expanded package for businesses hit by the NSW restrictions, more businesses will be covered, with the maximum turnover threshold increased from $50 million to $250 million.

Those eligible – including not-for-profits – will be able to receive $1,500 to $100,000 a week (compared to $1500 to $10,000 previously).

The government says up to an extra 1,900 businesses employing about 300,000 people could benefit from the widening of eligibility.

The total cost of the NSW package – funded on a 50-50 split with the state – is $600 million a week, up from $500 million in the previous package.

Morrison said Commonwealth support to NSW amounted to $750 million a week.

There is also a new joint federal-state package (funded on a 50-50 basis) to give Victorian small and medium businesses extra support to recover from the recent lockdown. This will total an extra $400 million.

On the vaccine front the NSW government, having failed to get more Pfizer from other states, has decided to divert some Pfizer doses from regional areas to inoculate Year 12 students in the COVID hot spots.

These students will be able to return to face to face learning on August 16.

We’ve yet to see how the reallocation decision will go down in the regions.

Morrison was upbeat in predicting Australia’s economy would bounce back strongly from the lockdown, as it did after the earlier dive. It’s crystal ball territory. The September quarter is set to be negative. The December quarter result is unforeseeable.

Read more: Now that Australia's inflation rate is 3.8%, is it time to worry?[1]

Treasurer Josh Frydenberg said what happens in the December quarter, “will largely depend on how successful NSW is in getting on top of this virus.”

The government is trying to judge what it will take to keep the economy out of a second recession, which would likely kill many businesses that just managed to hold on through the earlier one.

A second recession would inflict a major hit on the government politically, just before an election that must be held by May.

Read more: View from The Hill: Labor wouldn't disturb tax cuts, negative gearing in 'small target' strategy[2]

A poll done by Utting Research in NSW on Monday underlines the message of other polls: COVID currently is taking serious skin off the PM. Only 37% were satisfied with the job he is doing handling the COVID crisis; 51% were dissatisfied.

Morrison said on Wednesday: “I would expect by Christmas we will be seeing a very different Australia to what we’re seeing now”.

He knows if we don’t, he could be in dire straits.

Read more https://theconversation.com/view-from-the-hill-morrison-shakes-money-tree-again-in-bid-to-avoid-second-recession-165245

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Tricia Paoluccio designer to the stars

The Case for Nuturing Creativity in the Classroom, and in our Lives I am an actress and an artist who has had the privilege of sharing my work across many countries, touring my ...

Duke of Dural to Get Rooftop Bar as New Owners Invest in Venue Upgrade

The Duke of Dural, in Sydney’s north-west, is set for a major uplift under new ownership, following its acquisition by hospitality group Good Beer Company this week. Led by resp...

Prefab’s Second Life: Why Australia’s Backyard Boom Needs a Circular Makeover

The humble granny flat is being reimagined not just as a fix for housing shortages, but as a cornerstone of circular, factory-built architecture. But are our systems ready to s...

Melbourne’s Burglary Boom: Break-Ins Surge Nearly 25%

Victorian homeowners are being warned to act now, as rising break-ins and falling arrest rates paint a worrying picture for suburban safety. Melbourne residents are facing an ...

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...