Australia's 'textbook' stimulus has worked so far. Now for the big test | MattWadeSMH
Six months after massive government support began flowing to households hit by the COVID-19 crisis, weekly consumer spending has climbed back to levels close to the pre-pandemic norm. But the recovery will be tested as emergency income support is scaled back.shows purchases by those who received stimulus payments, including the Coronavirus Supplement and one-off $750 support payments, remains 27 per cent higher than pre-pandemic levels.
But purchasing by consumers who received no government stimulus payments has also steadied close to pre-pandemic norms, the tracker developed by analytics firm AlphaBeta, part of Accenture, and credit bureau illion also shows.AlphaBeta director Andrew Charlton said the broad-based spending recovery showed the government's “textbook” economic stimulus policies had worked well so far.
From Monday, the JobKeeper wage subsidy, which supports about 3.5 million workers, will be reduced from $1500 to $1200 a fortnight for employees who worked more than 20 hours a week and to $750 a fortnight for employees who worked fewer than 20 hours a week. Last Friday, the $550-a-fortnight Coronavirus Supplement, which goes to those on JobSeeker and some other welfare payments, fell to $250 a fortnight.
Dr Charlton said next Tuesday's federal budget would play a crucial role in the next stage of recovery.
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