Category Archives: Australian economy

Australia is easing superannuation access for those worst-hit by coronavirus. But can we afford it?

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Tax-free withdrawals will be capped at $10,000 this financial year and will allow those struggling to pay rent, meet mortgage repayments and buy food

• What Australia’s $189bn coronavirus economic rescue package means for you
• Follow our Australia coronavirus live blog
• Follow our global coronavirus live blog

Australians who are laid off as a result of the coronavirus outbreak will be allowed to pull money out of their superannuation, Scott Morrison announced on Sunday.

Withdrawals will be capped at $10,000 this financial year, and a further $10,000 next financial year, and will be tax-free, the prime minister and his treasurer, Josh Frydenberg, said.

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Coalition relaxes job-seeking obligations but refuses to suspend them during coronavirus crisis

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Jobseekers can now request appointments be carried out over the phone or online, while Centrelink debt recovery continues despite Covid-19

Welfare recipients will have their mutual obligations relaxed during the coronavirus crisis, but the government has stopped short of heeding calls from Labor, the Greens and social service groups to suspend them entirely.

Facing growing pressure to ease the burden amid a looming economic downturn and increasingly strict social-distancing guidelines, the employment minister, Michaelia Cash, said on Friday the government had adopted a range of measures aimed at making the system more flexible during the Covid-19 outbreak.

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Coronavirus Australia latest: at a glance

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A summary of major developments in the coronavirus outbreak across Australia

• Follow our Australia coronavirus live blog for all the latest news and updates

• Follow the latest global coronavirus updates in our international live blog

Key Australian developments in the global coronavirus outbreak on Thursday include:

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How Spanish flu nearly ripped apart Australia’s fledgling federation | Paul Daley

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A nation supposedly forged in the hellfire of war almost crumbled in the face of a virulent threat at home

Newly federated Australia, with its population not yet 5 million, was still enduring shocking fatalities on the European western front when its authorities began paying attention to the virulent strain of pneumonic influenza sweeping Britain.

Early Australian awareness of the “Spanish influenza” – an epidemic in Britain by mid to late 1918 – came with an acknowledgment that the new states grown of old colonies would need to stick together should the virus reach this isolated continent.

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Businesses affected by coronavirus should have access to disaster relief funds, says Queensland

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State says virus ‘is no different’ to floods, cyclones and bushfires as it prepares to ramp up pressure at Coag meeting

Queensland will use the upcoming meeting of state leaders and the prime minister to appeal to the federal government to open up its natural disaster assistance payments to local industries impacted by the coronavirus.

Scott Morrison has previously rejected Queensland’s request for the disaster recovery funding arrangements to be made available for businesses knocked by the economic slowdown resulting from Covid-19 on 4 February, and again on 28 February.

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FTSE on course for biggest fall since financial crisis

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World markets plunge on back of coronavirus-driven recession fears and threat of oil price war

Global stock markets have suffered their biggest falls since the 2008 financial crisis and trading was temporarily suspended on Wall Street after an oil price crash rattled investors fearing a coronavirus-driven global recession.

Dealing in shares on the main US indices was frozen within minutes of the opening bell, as circuit breakers were triggered by a 7% fall on the S&P 500. Once trading resumed 15 minutes later, the Dow Jones Industrial Average completed a fall of more than 2,000 points for the first time ever – a fall of more than 7%.

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Coronavirus live updates: fifth death confirmed in UK, as head of New York’s airports tests positive

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With cases spiking sharply across Europe and emergency measures in place from California to Saudi Arabia, investors have sent shares tumbling

US authorities are planning a flight tomorrow to repatriate Britons on the coronavirus-hit Grand Princess cruise ship.

The UK Foreign Office issued the following statement:

We continue to work closely with the US authorities to repatriate British nationals on board the Grand Princess. The US are currently planning for a flight to leave tomorrow evening, returning to the UK on Wednesday afternoon. We remain in contact with all British nationals on board and will continue to offer support.

Chinese authorities reportedly scrambled to move people out of quarantine hotels which need full safety inspections after the deaths of at least 10 people in a collapsed hotel.

Joanna Davison, an English teacher, and her partner were suddenly placed in enforced isolation in Shenzhen after a ferry trip about 10 days ago. On Thursday, she told the Guardian she endured a “terrifying” experience as five people in hazmat suits came to test them at her home before they were whisked to quarantine.

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GDP grew by 0.5% in December quarter, national accounts show – politics live

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The economy holds the headlines as government inches closer to releasing its stimulus package in response to coronavirus. All the day’s events, live

I missed this yesterday:

Mathias Cormann reveals that he personally intervened to chose the colour of the new fleet of Comcar vehicles, which will shift from their traditional white to dark grey. #Estimates pic.twitter.com/PqsJCQFOBC

*Grandstanding*

*Actually evidence from officials*

Don’t be misled by Senator Carr’s grandstanding & fear-mongering. The Bushfire & Natural Hazards CRC has funding until mid-2021 & the Govt is considering future funding for its work to continue. We’re actively engaging with the CRC, including a meeting with the PM last month. https://t.co/xZgEyqH2g7

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Malcolm Turnbull warns of ‘catastrophic’ future without net zero emissions goal – politics live

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The former prime minister has stepped into the climate debate, with a stark warning to moderate Liberals to act. All the day’s events, live

Greg Hunt will be giving the next coronavirus update at 1.10pm

Meanwhile, the lights keep flickering in Parliament House, which can only mean that my moods have begun to physically manifest.

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Coronavirus economic impact: Australia could be among world’s hardest hit nations

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Australia’s economy is unusually dependent on China, and a coronavirus-driven slowdown could mean billions in lost revenue

Australia could be one of the countries worst affected by the economic impact of the coronavirus outbreak as factories in China remain shuttered and millions of people are confined to their homes and banned from travelling.

The Reserve Bank of Australia on Friday stuck to its forecast of strong growth this year thanks to a rising housing market, and the stock market – along with others around the world – has largely shrugged off concerns about the global impact of the virus to remain close to all-time highs.

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Reserve Bank boss says coronavirus likely to be worse than Sars for Australian economy

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Philip Lowe says China’s economy is now bigger and more integrated into the world economy so the impact is likely to be greater

The coronavirus outbreak could do more damage to the Australian economy than 2003’s Sars outbreak, governor of the Reserve Bank Philip Lowe has said.

Appearing before the House of Representatives economics committee in Canberra on Friday, Lowe said China’s economy was now much bigger and more integrated into the world economy.

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Emergency payments for people affected by Australia’s bushfires ‘seriously inadequate’

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Acoss calls on government to boost the Disaster Recovery Payment after fires destroy more than 2,000 homes

Australia’s peak welfare body is calling on the federal government to immediately boost emergency payments for those affected by bushfires, saying it is concerned the current amount is “seriously inadequate”.

The Australian Council of Social Service chief executive, Cassandra Goldie, has written to the prime minister, Scott Morrison, with a range of recommendations the organisation says are urgently needed to help provide relief to those affected by the bushfire crisis that has destroyed more than 2,000 homes.

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Bernie Sanders’ economic adviser says Australia’s bushfires are a climate change ‘wake-up call’

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Stephanie Kelton says Australia could ‘absolutely’ benefit from a program similar to the Green New Deal

Australia’s unprecedented bushfires are a wake-up call to the world about the importance of tackling climate change, Bernie Sanders’ economic adviser said, and the country should consider implementing a green new deal to transition to a low carbon economy.

Stephanie Kelton said Australia could benefit from an ambitious program of spending, similar to the one proposed by Sanders and others that aims to transform the US economy and help keep global heating below 1.5C.

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Cabinet papers 1998-99: Coalition’s campaign to unleash the GST laid bare

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Tax reform dominated debate, as ministers discussed East Timor and the 2000 Olympics – and resisted climate action

On 1 July Australia’s goods and services tax will have been in place for 20 years. It is uncontroversial in concept, with no major party advocating its abolition. Every so often there are calls for it to be increased from 10% or expanded – calls that are usually rebuffed.

But just how fraught the GST was to introduce is one of the key insights from the release of cabinet papers by the National Archives of Australia, covering the years 1998 and 1999. There were other concerns: East Timor’s independence, the 2000 Sydney Olympics, the failed republican referendum, and familiar resistance to doing anything but the minimum on climate change.

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Yes, Australia has always had bushfires: but 2019 is like nothing we’ve seen before

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Record low rainfall has contributed to a continent-scale emergency that has burned through more than 5m hectares and alarmed scientists, doctors and firefighters

As the area burned across Australia this fire season pushes beyond five million hectares, an area larger than many countries, stories of destruction have become depressingly familiar.

At the time of writing, nine people have been killed. Balmoral, in the New South Wales southern highlands, is the latest community affected in a state where up to 1,000 homes have been destroyed. A third of the vineyard area and dozens of homes were razed in the Adelaide Hills. It is too early for a thorough examination of the impact on wildlife, including the many threatened species in the fires’ path.

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Police ask Clover Moore for statement on Angus Taylor – politics live

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Sydney lord mayor approached by police investigating accusations the emissions reduction minister relied on a falsified document to attack her. Follow all the day’s political news live

That’s where we’ll leave the live blog for the day. Thanks for following along.

It’s been another messy day. Many say the medevac repeal has made it one of parliament’s darkest.

Another development on the Angus Taylor front.

The City of Sydney’s lord mayor, Clover Moore, has been approached by police to provide a statement for their investigation into accusations Taylor relied on a falsified document to attack her travel-related emissions. The council said in a statement:

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Labor condemns ‘disgraceful’ Westpac as Hartzer stands down – politics live

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Westpac chief executive’s resignation draws little sympathy on all sides of politics. All the day’s events, live

And here is another indication of where question time is headed:

Last week, a bank broke money laundering laws 23 million times.

But instead of going after them, the Liberals are going after unions – trying to take away their right to exist.

This Government hates working people. We'll fight them every step of the way. pic.twitter.com/9vMhFquk4W

A group of north Queensland dairy farmers are on their way to Canberra to express their frustrations at what is happening within their industry.

That’s at the same time the Nationals are trying to get ahead of Pauline Hanson, who may have come late to the issues, but certainly has been running full steam ahead since becoming aware of it.

David Littleproud, the drought minister, some time ago said he fixed the supermarket [milk price] problem. He said he thumped his chest, waved his fists at them, and demanded they put their milk prices up.

Well, we know that solution lasted about five minutes.

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Scott Morrison travels to Indonesia as Labor embraces free trade agreement

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PM to attend Joko Widodo’s inauguration and hold talks on FTA, which opposition leader says will be good for jobs

Scott Morrison’s whirlwind trip to Indonesia is a “good thing”, his political opponent says, as Labor embraces bipartisan support for Australia’s latest free trade agreement.

Morrison travelled to Indonesia for Joko Widodo’s second inauguration as president, with talks between the two leaders planned at the presidential palace.

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Coalition should consider increasing bank levy, Labor’s Jim Chalmers says

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Shadow treasurer calls for new banking inquiry after major banks failed to pass on full interest rate cut

Labor says the Morrison government should consider increasing the bank levy in response to the failure by the big players to cut interest rates in line with the central bank, and look at broader measures to boost competition in the sector.

The shadow treasurer, Jim Chalmers, told Sky News on Sunday the government needed to sign off on a new inquiry into competition in the banking sector by the Australian Competition and Consumer Commission, and consider all options, including hiking the bank levy, after the major banks declined to pass through the full rate reduction following the Reserve Bank’s latest cut to the official cash rate.

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Former Reserve Bank governor says interest rate cuts have ‘done everything they can do’

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Ian Macfarlane says Australia facing the ‘most perplexing and difficult’ era for monetary policy ever

Former Reserve Bank governor Ian Macfarlane has weighed into the debate over interest rates, believing any further cuts will have very little power to do anything useful.

The central bank cut the official cash rate to a record low of just 0.75% this week, the third reduction in a matter of months.

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