Jobseeker, youth allowance, parenting and special benefit payments will be boosted by $550 a fortnight.
Treasurer Josh Frydenberg held a press conference late on Monday night, and said the new stimulus package would continue to support Australians during the crisis.
“The best way to keep Australians in jobs is to keep businesses in business,” he said.
“We know that the economic situation has deteriorated, as every day passes. And we know that the economic shock from the coronavirus and its impact will be deeper, will be wider and will be longer than first thought.
“But tonight, the Australian parliament has acted in the best interests of the casuals and the sole traders and the retirees and those on income support and the Australian students.”
Finance Minister Mathias Cormann confirmed the coronavirus supplement would be extended to full-time students.
The government will no longer need legislation to make changes to welfare settings after passing an amendment to the package, giving the social services minister unprecedented powers.
You can read more about the package here.