Welfare recipient and pensioner households will get a one-off $750 cash payment as part of the federal government’s economic response to the coronavirus pandemic.
It’s believed 6.5 million Australians will benefit from the payment, costing taxpayers $4.8 billion.
Watch the federal government’s announcement above
Those who receive Newstart, the disability support pension, carer’s allowance, youth allowance, veteran support payments or family tax benefits will be eligible for the payment.
As will Commonwealth senior health cardholders and some 2.4 million aged pensioners.
It will be paid automatically from March 31.
People are seen wearing face masks in Sydney, Monday. Credit: AAP
Treasurer Josh Frydenberg said he expected the money to be “spent across the economy”.
“It’s not for us to tell those Australians how to spend their money,” he said.
“But what we do know from experience is that they will spend that money and that money will encourage economic activity.”
Suite of measures
The government has announced a suite of measures on Thursday to stimulate the economy in the face of the pandemic.
For businesses, the instant asset write-off allowance will be increased from $30,000 to $150,000.
“Any such purchase, from now until the 30th of June, including a truck, a tractor, a shop fit-out, can be written off immediately,” Frydenberg said.
People wait outside a COVID clinic in Perth. Credit: 7NEWS
There will be automatic grants of up to $25,000 to businesses with up to $50 million in turnover.
Businesses that pay salary and wages will receive a minimum $2000, even those not required to withhold tax.
About 117,000 apprentices are expected to benefit through wage subsidies for employers with fewer than 20 employees.
More on 7NEWS.com.au
“It is a health crisis with very significant economic impacts,” Prime Minister Scott Morrison said.
“This plan is about keeping Australians in jobs.
“This plan is about keeping businesses in business.”
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‘… They will spend that money and that money will encourage economic activity.’
The measures are set to inject $17.6 billion into the economy.
There have been more than 120 confirmed cases of coronavirus in Australia.
Three Australians have died.
– With AAP
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