James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to Senator Cormann, the Minister representing the Prime Minister. Can the minister update the Senate on further decisions and measures taken by the Morrison government to support the economy and jobs during the coronavirus-induced crisis?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator McGrath for that question. The COVID-19 crisis is a battle we are fighting on two fronts. It is both a health battle and an economic battle. Our health mission, as we've discussed, is to slow down the spread of the virus to save lives. I can inform the Senate today that the early signs are promising. Official data shows that we are heading in the right direction in terms of slowing the spread of the virus, with the growth in new cases going from above 20 per cent when we last met to just two per cent in more recent days.

The government's economic mission is to keep businesses in business and as many Australians as possible working for those businesses in their jobs. To date, our support for the economy has totalled $320 billion, or 16.4 per cent of GDP. We have doubled support for welfare recipients and provided greater support for social security and veteran income support recipients and eligible concession card holders. Indeed, for those casuals who have been in employment with the same employer for less than 12 months, if they lose their job or need that support, they are able to apply for the jobseeker payment, which we have doubled compared to what was there before. Individuals in financial distress because of the coronavirus crisis can access part of their superannuation to relieve financial strain. Retirees have more flexibility to manage their superannuation assets, and lower deeming rates are helping those under financial pressure. Eligible small- and medium-sized businesses have received a boost to their cash flow and now have easier access to new loans. Rent relief is underway for commercial and residential tenants, while business continuity payments are keeping childcare services afloat. The economic battlefront is one we continue to deal with today.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator McGrath, a supplementary question?

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Can the minister inform the Senate how Australian businesses and workers will benefit from the government's JobKeeper program?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator McGrath for that supplementary question. Yes, I can. The JobKeeper payment is designed to help keep as many businesses as possible in business and to help keep as many Australians as possible working for those businesses in their jobs. It is paid to the employer to reduce payroll pressures, given a significant impact to their turnover, so they can keep employees in a job rather than having to let them go. The historic wage subsidy will be delivered to around six million Australians, just under half of our working population, who will receive a flat payment of $1,500 per fortnight through their employer before tax.

This $130 billion JobKeeper package will help keep Australians in jobs as well as tackle the significant impact from the coronavirus. The payment will provide the equivalent of around 70 per cent of the national median wage. Indeed, for workers in the accommodation, hospitality and retail sectors, it will equate to full median replacement wage.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator McGrath, a final supplementary question?

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, why is the JobKeeper payment so important to building a bridge to economic recovery for the Australian economy on the other side of the pandemic?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator McGrath for that supplementary question. It is vital that, through these challenging times, employers and employees stay connected as much as is possible. This payment will ensure that this can be the case even when many businesses move into hibernation because their areas of activity have been impacted by the coronavirus crisis or they have been asked to restrict activities on the basis of medical advice. The JobKeeper payment is about enabling businesses to keep their workers engaged so that they are ready when we come out of this crisis on the other side. Businesses must be in the best possible position to rebuild and recover, and the most important part of that will be having workers still attached to their businesses.

The $130 billion JobKeeper package is unprecedented in our history. It is designed to get this country through an unprecedented challenge and place it in the best possible position on the other side of this pandemic.