In its latest update the Federal Government has announced a JobKeeper Payment for around six million Australian workers. It represents a strong response to the prospect of our economy going into hibernation to deal with the COVID-19 health crisis.
Again, the overall policy response to COVID-19 has been proportionate on a step-wise basis. The colloquial “bridge to the other side” is being built by government, regulators, businesses and individuals, and this additional piece to the ‘puzzle bridge’ acts more like a bearer that anchors the bridge from both sides of this heath crisis.
Read the full analysis of the KPMG response to the announcements as of 30 March 2020.
The Federal Government’s announcement of further economic support measures, backing-up its 12 March stimulus package and the Reserve Bank of Australia’s action, will have some cushioning effect among the Australian community as we strive to contain the public health crisis.
Today’s package (22 March 2020), is nuanced in its approach as it needs to be considered in combination with the suite of support measures already announced, and importantly it is designed to enable businesses to self-determine the support they need – whether it be cash flow support from government or private sector funding support from banks – over the period of this crisis.
The support mechanisms developed by the Federal Government are temporary, scalable and flexible, and seek to be proportionate in the event additional fiscal firepower is needed in the future. This is a sensible approach as it may be that the Federal Government’s ‘bridge to the other side’ will need to be widened in the coming weeks as additional support measures are necessary.
The measures announced today amount to a further $66.1 billion in Federal Government support, bringing the total over the last two weeks to around $189 billion, including the fiscal measures announced on 12 March and various financial liquidity support measures (including those of the Reserve Bank of Australia). This represents around 10 per cent of GDP.
Read the full analysis of the KPMG response to the announcements as of 22 March 2020.