Prime Minister Scott Morrison has announced the effective doubling of the dole and a big increase in benefits, boosting benefits by $225 a week.
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The government has also told Australians to cancel all non-essential travel, and flagged "far more draconian measures to enforce social distancing" saying too many Australians did not seem to be getting the message.
The "coronavirus supplement" applies to people on Newstart - now known as the "job seeker payment", as well youth allowance, parenting payments, the farm household allowance and special benefits.
The assets test and waiting period has been waived, allowing people who lose their jobs to more easily qualify for a benefit.
Income tests will still apply. The virus supplement will be paid for six months.
Treasurer Josh Frydenberg said the unemployed would now receive $1100 a fortnight.
This benefits boost will cost $14.1 billion and will see the government employ up to 5000 more staff in Services Australia, the agency formerly known as Centrelink. The employment boost could be a significant fillip for the Canberra economy, depending on where staff are employed.
People will be able to access superannuation early. They will be able to access up to $10,000 this financial year and $10,000 next financial year. The withdrawals from superannuation will be tax free - and available to people on benefits and to sole traders and casuals who have lost 20 per cent or more in working hours or income as a result of the coronavirus crisis.
"Since the government announced its first stimulus package just over a week ago, the global and the domestic economic environment has deteriorated. We now expect the economic shock to be deeper, wider and longer. Every arm of government and industry is working to keep Australians in jobs and businesses in business and to build a bridge to recovery on the other side," Mr Frydenberg said.
All small businesses and not-for-profits with turnover up to $50 million will get $20,000, with tax concessions of up to $100,000 for businesses.
Mr Frydenberg also lifted the threshold for liquidation and said company directors would no longer be personally liable for trading while insolvent.
Mr Morrison warned again that the tough times would last for months.
"We cannot prevent all the many hardships, many sacrifices that we will face in the months ahead," he said. "And while these hardships and sacrifices may break our hearts on occasion, we must not let them break our spirit and we must not let them break our resolve."
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