More stimulus on way as stock market dives

A SECOND stimulus package is in the works to keep the Australian economy afloat as Scott Morrison warns the impact of the coronavirus is already “well beyond” that of the 2008 global financial crisis.

Four days after tabling a $17.6 billion spending blitz, the Federal Government confirmed yesterday it was working on further measures to support businesses and keep Australians in jobs.

Details on the extra support are expected within a week, on top of cashflow boosts to businesses and $750 handouts for pensioners and welfare recipients due to flow next month.

The Reserve Bank is set to deliver its own emergency relief Thursday, economists tipping it will cut the official interest rate to 0.25 per cent.

It comes after the Australian share market suffered its biggest one-day rout since the 1987 crash, with the benchmark ASX200 index finishing down 9.7 per cent, wiping more than $160 billion from the value of the nation’s top companies.

The RBA is also preparing to launch a money-printing blitz, unleashing a quantitative easing program for the first time.

It is understood Mr Morrison met with Treasurer Josh Frydenberg and Finance Minister

Mathias Cormann yesterday to discuss the next phase.

The PM said the bulk of the Government’s $17.6 billion package would be spent in the next few months.

“This is nothing like the GFC,” he said.

“This has gone well beyond that now. I mean, in the GFC, we didn’t have to shut down the borders. In the GFC, we didn’t have to stop mass gathering of the public … And it’ll be a challenging period.”

Opposition Leader Anthony Albanese said it was “extraordinary” a second stimulus package was needed before the first was even implemented.

“They didn’t get it right the first time,” Mr Albanese said.

“We’ve said repeatedly that casual workers, gig workers, people who are sole traders, are very concerned that there’s a big gap there.

“They’re going to miss out on income.”