Wage aid push rejected

Government against UK-style subsidy

FINANCE Minister Mathias Cormann has ruled out a UKstyle wage subsidy but says the Morrison Government will announce alternative stimulus measures within the next few days.

Business and unions have urged the Federal Government to consider UK Prime Minister Boris Johnson’s 80 per cent wage subsidy, which is aimed at keeping people employed during what may be a prolonged coronavirus crisis.

But the Australian Government has repeatedly baulked at the idea.

“No, we will not look at a UK-style system because in an Australian context that just wouldn’t work,” Senator Cormann told Sky News yesterday, adding the country was looking at six months of economic disruption from Covid-19, so support needed to get to people “as quickly as possible”.

“If we came up with a completely different system, a completely different approach, and had to start up a system from scratch it would take us way too long to get that into the community,” he said.

He said the Government continued to assess ways to improve levels of income support, while further expanding support and incentives for business to hold on to staff.

“We would expect an announcement in the next few days,” he said.

A survey conducted by the Australian Bureau of Statistics and released on Thursday showed almost half of all Australia’s businesses had felt the impact of the coronavirus and four out of five expected to be hit in coming months.

Thousands of workers have lost their jobs in the past week alone as the impact of virus bites. The hospitality, travel and retail sectors have had the bulk of the casualties.

Labor has been particularly critical of the length of time being taken to get improved unemployment benefits into people’s hands.

The coronavirus supplement – paid at a rate of $550 per fortnight – will effectively double the JobSeeker payment, which has replaced the Newstart allowance.

But the supplement won’t reach sacked workers until April 27. The second payment won’t be paid until July 10, and pensioners and families will have to wait 16 weeks for the payment.

Senator Cormann defended the timetable, saying making payments of this magnitude to so many people was a significant logistical exercise.

“We are working to the tightest possible deadlines,” he said.