Coronavirus: Australia passes record US$80 billion wage subsidy package to help 6 million workers
- The government will pay employees at any firm that has seen a 30 per cent reduction in revenues US$928 every fortnight
- The largest rescue package comes as the country is facing its first recession in almost 30 years
Citing the threat of a prolonged economic downturn, Prime Minister Scott Morrison’s government late last month outlined a plan to pay employees at any company that has seen a 30 per cent reduction in revenues A$1,500 (US$928) every fortnight.
The wage subsidy package, which is expected to cost A$130 billion (US$80 billion), is the centrepiece of A$320 billion (US$198 billion) pledged by the government and central bank in financial support as the pandemic shuts companies and leaves many unemployed.
“This is the biggest economic lifeline that this country has ever seen,” Australian Treasurer Josh Frydenberg told reporters in Canberra.
“We will do whatever is necessary to ensure our nation gets to the other side of this coronavirus pandemic.”
The package was approved by a pared back version of Australia’s parliament with the support of the opposition Labor party.