Struggling Australian Businesses to Get A$130 Billion in Wage Subsidies

AAP
By AAP
March 30, 2020Australia
share
Struggling Australian Businesses to Get A$130 Billion in Wage Subsidies
Australian Prime Minister Scott Morrison during a press conference alongside Treasurer Josh Frydenberg (R) at Parliament House in Canberra, Australia, on Jan, 6, 2020. (Rohan Thomson/Getty Images)

Australian Prime Minister Scott Morrison has announced a A$130 billion ($80 billion) economic stimulus package to help businesses pay wages for six months amid the CCP virus pandemic, also known as the novel coronavirus pandemic.

Working Australians in struggling businesses will be paid wage subsidies of up to A$1,500 a fortnight by their employer as the government steps in to keep staff on during the CCP virus crisis as part of an unprecedented A$130 billion package.

Morrison unveiled the federal government’s third and biggest round of economic stimulus on Monday.

“We want to keep the engine of our economy running through this crisis,” he said.

The federal government will give the A$1,500 allowance to businesses that have taken a 30 per cent hit to turnover because of the CCP virus.

NTD refers to the novel coronavirus, which causes the disease COVID-19, as the CCP virus because the Chinese Communist Party’s coverup and mismanagement allowed the virus to spread throughout China and create a global pandemic.

Companies turning over more than A$1 billion will be eligible if they have taken a 50 per cent hit.

The subsidies will last for six months, with full-time, part-time, and casual workers who have been with their employer for at least 12 months eligible.

Sole traders have also been included in the package.

Payments will flow to businesses in the first week of May and will be backdated to March 30.

Workers stood down since March 1 will be eligible.

Morrison said some countries would face economic collapse or hollowing out in coming months as the disease spreads globally.

“In the very worst of circumstances, we could see countries themselves fall into chaos—this will not be Australia,” he said.

The latest package comes on top of almost A$70 billion in already announced federal government stimulus.

Treasurer Josh Frydenberg said Australia was facing an economic and health war.

“The past weeks have been tough but the weeks ahead will be tougher,” he said.

“Australians know that no matter how great the challenge is, our government has their back.”

Coupled with support for banks, the government has so far set aside A$320 billion, or 16.4 per cent of GDP, to deal with the fallout from the CCP virus.

By Matt Coughlan. NTD contributed to this article.