Millions of Australians have an additional $ 750 in their TOMORROW bank as part of the coronavirus cash splash
- 6.5 million Australians will receive one-off cash payments when a recession is imminent
- The stimulus package is paid to everyone who receives income support
- PM introduced the two-part scheme to boost the economy as COVID-19 hits
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Up to 6.5 million Australians will receive a one-time payment of $ 750 on Tuesday in an effort to ward off an impending recession due to the coronavirus pandemic.
As part of the Australian government’s $ 17.6 billion two-part targeted stimulus package announced by Scott Morrison on March 12, payments go to anyone who already receives income support.
That includes retirees, veterans, job seekers (Newstart), youth allowance recipients, and more.
The money will start in the bank account from Tuesday, with a second payment of $ 750 for benefit recipients and retirees in July.
People line up for access to a Centrelink Service Center in Sydney on March 23, 2020, as the COVID-19 pandemic begins to have drastic consequences on jobs.
Australian Prime Minister Scott Morrison (pictured) speaks at the news conference in Canberra on March 29, 2020 about the two-part economic stimulus package.
“Just as we acted decisively to protect the health of the Australian people, based on the best evidence and medical advice, our support package responds in a timely, proportionate and targeted manner to the economic challenges of this pandemic,” he said at the time. he announced the settlement.
“Our plan will support Australian households with a stimulus payment to boost growth, boost domestic confidence and consumption, reduce cash flow pressures for businesses and support new investments to boost productivity.
“Australia is not immune to the global challenge of the coronavirus, but we have already taken steps to prepare for this impending international economic crisis.”
Small, medium, and non-profit organizations with sales of less than $ 50 million are also eligible for a plan benefit.
Tax-free payments of $ 20,000 to $ 100,000 are paid automatically through the Australian Taxation Office, allowing companies to retain personnel between January 1 and June 30.
According to the government, this helps approximately 7.8 million employees at approximately 700,000 companies.
“Our targeted stimulus package aims to keep Australians working and businesses in business so we can bounce back strongly,” said Morrison.
“The economy is currently in need of temporary help to come back better, so that the livelihoods of all Australians are protected.”
People line up to enter the Centrelink Service Center in Melbourne on March 24, 2020, as all nonessential business and travel is shut down in an effort to stop the spread of COVID-19
The economic impact of COVID-19 begins to feel as people line up to access a Centrelink Service Center in Sydney on March 23, 2020
While waking up to an extra $ 750 will be a welcome sight for many Australians, Westpac Bank chief economist Bill Evans has warned that generous handouts are unlikely to save Australia from a recession.
“The government’s fiscal stimulus package is a bold initiative to strengthen the defense of the Australian economy against the damage COVID-19 is likely to cause,” Evans said.
“However, the current domestic and global environment has deteriorated faster than we expected … despite the government’s courageous efforts, the June quarter will still show negative growth and Australia will experience a technical recession.”
Westpac predicts that approximately 800,000 jobs will be lost due to the coronavirus crisis, leading to unemployment of 11 percent by June.