The $1500 fortnightly payment per worker will flow to businesses from May 1 and will be backdated to March 30, with the government estimating it will keep 6 million workers in jobs at a cost of $130 billion over the next six months.
The massive expenditure brings the government’s total support measures up to about $320 billion, with all talk of a budget surplus long gone.
The Parliamentary Budget Office is now examining the implications of the coronavirus and its economic hit to the budget over the next decade.
Businesses are eligible for the payment if their turnover has fallen by 30 per cent or more and for businesses with a turnover of more than $1 billion, their turnover will have needed to have fallen by 50 per cent.
Sole traders and not-for-profits will also be eligible for the payments.
Full-time and part-time workers are eligible, while casual workers will be eligible for the payment if they have been with their employer for 12 months or more.
The flat-rate wage is to be paid to employers who will pass the payments onto employees.
“They want to keep this connection because they know there’s going to be a time after the coronavirus and they want to bounce back stronger than ever,” Treasurer Josh Frydenberg said during a press conference on Monday.
The Morrison government is urging other countries to do more to stabilise the global economy as it prepares to roll out a massive program of wage subsidies.
Treasurer Josh Frydenberg met with G20 finance ministers overnight, asking them to act urgently and commit to a fiscal support target to help the recovery once the coronavirus crisis is over.
He wants the grouping of the world’s largest economies to send a signal to their citizens they are doing whatever it takes.
“First, our priority should be putting the global economy into controlled hibernation while quarantine measures are in place,” he said.
“Quick, strong and co-ordinated action now will minimise the permanent human and economic damage.”
The Treasurer also wants a G20 commitment to lead the global recovery once the health crisis recedes, including co-ordination over the easing of travel, transport and production restrictions, and developing a robust long-term recovery plan.
