Coronavirus $750 stimulus payments rolled out for second time by federal government

Treasurer Josh Frydenberg. Picture: Elesa Kurtz
Treasurer Josh Frydenberg. Picture: Elesa Kurtz

The second tranche of an economic package meant to keep the economy afloat comes into force Monday.

Under the previously announced stimulus, about five million Australians on low incomes will be entitled to $750.

According to the federal government, the payment will go to people on social security, veteran and other income support.

In March, the government provided similar support just as the coronavirus crisis was starting to bite.

Treasurer Josh Frydenberg said the latest payment would help "keep businesses in business and Australians in jobs.

"The second $750 economic support payment will inject $3.8 billion into the economy and provide an economic lifeline to millions of Australians at a time when they need it most."

"The Morrison government will continue to do all that is necessary to ensure Australia bounces back stronger on the other side."

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The payments will be delivered through this month. People living in Australia and with a payment or concession card on July 10 should get it automatically, according to the Minister for Government Services, Stuart Robert.

"There is no need to do anything to get the second economic support payment. If eligible, people will see the $750 payment arrive in their bank account between July 15, 2020 and the end of July, 2020."

Back in November last year, way before coronavirus was even imagined, the government was already saying that the economy faced "a challenging time". It announced more spending on construction, particularly of hydro power, rail and other infrastructure schemes.

Extra spending this March then came as the impact of the virus threatened to tip the economy into recession, with forecasts of unemployment rising to 10 per cent of the workforce.

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Much of the support, like JobKeeper, is due to expire in September and it's not clear what will happen then.

Economists are unsure of the future. Much depends on international demand for Australian exports and that depends on China and the United States.

The Reserve Bank of Australia's overview in May said: "Beyond the first half of 2020, the outlook for the domestic economy depends on how long social distancing remains in place and its effects on economic activity.

"Other factors include how long uncertainty and diminished confidence weigh on households' and businesses' spending, hiring and investment plans. The initial phase of the recovery is likely to be primarily driven by the easing in restrictions, which will lead to an improvement in employment outcomes as businesses re-open, as well as a pick-up in household spending.

"In the latter part of the forecast period, business investment decisions will more strongly shape the recovery."

This story Second tranche of $750 payments to be rolled out first appeared on The Canberra Times.