Josh Frydenberg set to announce first Australian recession in almost 30 years

Australia's first recession in almost 30 years is set to be confirmed on Wednesday, as workers have pandemic-sparked wage subsidies locked in until March.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg during Question Time at Parliament House in Canberra.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg during Question Time at Parliament House in Canberra. Source: AAP

Australian workers officially have wage subsidies locked in until next year as the nation's first recession in almost 30 years is set to be confirmed.

Figures for the June quarter are expected to show the worst economic growth in at least 60 years, with a contraction of around six per cent because of the coronavirus pandemic.

The data will confirm a technical recession, after a 0.3 per cent decline in gross domestic product in the March quarter.
Treasurer Josh Frydenberg will unveil the figures on Wednesday, after earlier arguing the numbers wouldn't be as bad as other countries.

This indicates the "remarkable resilience of the Australian economy," he told parliament on Tuesday.

Mr Frydenberg is keenly awaiting Victoria's roadmap out of its lockdown, due for release on Sunday, so he knows the economic plan.

Legislation splitting JobKeeper wage subsidies into a two-tiered system and extending the program for another six months have breezed through parliament, with the $1500 flat fortnightly rate to end later this month.

People who worked less than 20 hours a week before the crisis struck will be paid $750 a fortnight from the end of September, while all others will receive $1200.

The maximum payment will come down to $1000 from December to March.
Debate around border closures continues, with Prime Minister Scott Morrison and state leaders to discuss the definition of a "hotspot" at a national cabinet meeting on Friday.

The definition could put pressure on other states with low case numbers to allow travel.

Mr Frydenberg says border arrangements need to be more flexible.

"Right now they're too cruel, too confused and there's not enough compassion and not enough common sense," he told reporters.

Deputy Chief Medical Officer Michael Kidd says there's hope on the horizon but Australia can't afford to be complacent.

Labor failed in its bid to censure embattled Aged Care Minister Richard Colbeck over his handling of the sector, where 462 residents have died from coronavirus since the start of the pandemic.

Professor Kidd appeared to contradict the minister's claim that federal aged care regulators stopped making random nursing home compliance checks based on medical advice.

"I'm not aware of the AHPPC being asked for advice about whether there should have been any cessation of visits," he said.


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3 min read
Published 2 September 2020 7:56am
Updated 2 September 2020 8:31am
Source: AAP, SBS



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