How many stimulus packages have been launched in Australia during COVID-19?

Summary

• Australia has offered and expanded a lot of stimulus packages for its citizens, copied from Kevin Rudd’s crisis response to the recession in 2008-2009.
• JobKeeper and JobSeeker were supposed to end in September, but the subsidies got extended to March next year, at a reduced rate.
• JobTrainer was introduced as a way of educating or upskilling the citizens for jobs that would be in-demand in the future.
• HomeBuilder was intended to boost employment in the building industry, as well as encourage people to renovate or build new homes.
• Victorian MP Daniel Andrews introduced a new stimulus package for the Victorians, involving A$3 billion in total.

Not many nations have been as lucky as Australia when it comes to stimulating the economy and the citizens through financial aid packages. According to the Australian Treasury site, the final figure for the Australian economic stimuli was a staggering A$259 billion.

Morrison’s Government decided to follow former PM Kevin Rudd’s steps back in 2008-2009 when Australia bypassed the last financial recession. The only reason why the 2008 recession did not affect Australia was because of the economic stimulus packages given out as cash grants to the citizens. That move was seen as one of the best crises plans in the history of the world.

In this article, we will summarise all stimulus packages that the Australian Government has generously provided to its citizens during the current COVID-19-led recession.

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JobKeeper

JobKeeper was among the first stimulus packages that were announced on 30 March 2020. The idea behind JobKeeper was to keep Australians in businesses by providing their employers with enough money to keep everyone employed. Each employee needed to stay with the employer for at least 12 months to be eligible for the payment.

DO READ: All you need to know about JobKeeper Payment scheme

The flat amount for eligible employees was A$1,500 (before tax) every fortnight. Businesses, some non-profit organisations, and deductible gift recipients were qualified for JobKeeper but needed to be hit by 15%, 30% or 50% drop in revenue, depending on the size of the business and how badly hit it was. All employers needed to nominate their employees via online forms to get employment.

One example of how JobKeeper worked is when employees took unpaid sick leave. If the company and the particular employee were registered in the system, the employee would still get up to A$1,500 per fortnight or would be subsidised for the remaining amount if they did not earn at least A$1,500. In a way, that was seen as unfair because some people were making more than usual, whereas many were left without any financial help because they did not tick all the boxes.

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All applications and transactions will be getting thoroughly checked by the Australian Taxation Office (ATO) in case of any fraudulent behaviour.

The stimulus was supposed to end in September, but the Morrison Government extended the subsidy until 28 March 2021. That would mean that the subsidy would be available for almost a whole year.

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JobSeeker

A similar stimulus package was provided as a job subsidy to those Australians who were seeking work during the pandemic. Everyone remembers the big lines at the front of Centrelink – all those people were applying for JobSeeker.

DO READ: Transiting from JobKeeper to JobSeeker: Morrison’s Government plan to boost employment

Eligible work seekers needed to be at least 22 years old, meet residency conditions and earn less than the test limit.

The amount that work seekers received was dependent on certain factors, but mostly on a partner’s income. The maximum payment that could be received was A$1,340 per fortnight, before tax. As JobSeeker also got extended, the payments from 25 September will be reduced to a maximum of A$1,040.10.

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JobTrainer

A$2billion were allocated to the JobTrainer scheme, a way of upskilling or educating Australians that are seeking work. All people that left school could apply for the program, as well as apprentices that want to make sure they will complete their training.

340,700 training spots were promised for everyone interested in this way of stimulating the economy, with no or low costs for the courses provided.

The idea behind JobTrainer was to be prepared when the threat from the pandemic subsides, so there could be more people to fill in jobs that will be in high demand.

HomeBuilder

With HomeBuilder, families with existing properties could apply for a stimulus for renovating their home, and first-time homebuyers could get a government boost worth A$25,000. Different states and territories had different rules for enrolling in HomeBuilder, which could be found on the official Treasury webpages.

This way, more people were encouraged to buy or renovate a new home, supporting builders and the building industry at the same time.

ALSO READ: Homebuilder Program Supported New Home Sales To Improve In June

Victorian stimulus

Last but not least, Victorian MP Daniel Andrews introduced another stimulus package that could help Victorian businesses affected by the second lockdown.

The stimulus was announced on 13 September, involving A$3 billion in total.

The aid would come in tax relief, cash grants, waiving some of the costs and others. Small and middle-sized businesses will be provided with the most – A$1.1 billion in cash grants for the most affected firms and companies.

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