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A new wage subsidy is set to be unveiled today as the government looks to “hibernate” businesses over the next six months.
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Government to release third round of measures to ‘hibernate’ businesses
30 March 2020
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Prime Minister Scott Morrison and Treasurer Josh Frydenberg are set to announce the third tranche of its economic plan, including a business “hibernation” package that will be “bigger than anything” previously announced.
“The idea is pretty simple: There are businesses which will have to close their doors. They will have to keep them closed either because we have made it necessary for them to do so, or simply there is just not the business to keep their doors open. We want those businesses to start again,” Mr Morrison said.
“And we do not want over the course of the next six months or as long as it takes, for those businesses to be so saddled by debt, so saddled by rental payments, so saddled by other liabilities that they will not be able to start again on the other side. We want these businesses to effectively go into a hibernation, which means on the other side, the employees come back, the opportunities come back, the economy comes back.
“The next stage, which will be even bigger than anything you have so far seen, will go broader than that and ensure that we are working together with companies to keep people connected to companies.
“This is part of the hibernation strategy of ensuring that we keep people connected with businesses and with their jobs so that, on the other side of this, Australia can bounce back stronger.”
The new plan, set to be announced later today, has been tipped to include a wage subsidy of up to $1,500 per employee and backdated to help employees who have been stood down because of the economic downturn.
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Mr Morrison said: “I know [you] are going through very difficult times. These changes will be announced soon and I would ask that before you make any further decisions that you take the opportunity to see the further measures that the government will be announcing, and we will be seeking to enlist you in that process.
“We will be ensuring also that those who have already gone into this very devastating situation where they have had to stand down workers, that any measures we are announcing will be taking them on as well and we will be working with them to that end.”
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