Australia Injects 8 Trillion Won Emergency Funds for COVID-19 Economic Stimulus...Cash Support Implemented

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Australian government announced that it will implement a cash stimulus package worth 10 billion Australian dollars (approximately 7.8263 trillion KRW) as a measure to address the economic recession and unemployment caused by the novel coronavirus disease (COVID-19) crisis.

According to foreign media including the Associated Press on the 10th (local time), the Australian government stated that as part of its response to the economic downturn and unemployment caused by the COVID-19 crisis, it will provide a one-time cash payment worth 10 billion Australian dollars targeting pension recipients, unemployment benefit recipients, and small business owners. Australian Prime Minister Scott Morrison emphasized, "This stimulus package is different from the indiscriminate cash handouts during the global financial crisis," adding, "Because payments are made to specific targets through the current welfare benefit system, it will have a rapid effect."

He also urged large corporations to "show patriotic behavior by prioritizing the payment of bills from small business owners struggling with cash shortages."

Federal Treasurer Josh Frydenberg said, "The economic impact of the coronavirus is very severe," and added, "Policy decisions should be based on facts, not fear." Previously, the Australian Treasury had opposed the Prime Minister's cash support fiscal policy.

Australian economic experts welcomed the government's cash stimulus but also mentioned the need for additional measures. Since the aftermath of the bushfire disaster that swept across Australia still remains along with the consumption slump caused by COVID-19, there is strong public opinion that fiscal spending should be expanded. Alan Oster, Chief Economist at the National Australia Bank (NAB), said, "A stimulus package of less than 10 billion Australian dollars is insufficient. The government should consider various measures such as extending quarterly GST filing deadlines, tax cuts, and increasing welfare benefits."

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