Australia markets closed
  • ALL ORDS

    6,940.60
    -165.10 (-2.32%)
     
  • ASX 200

    6,673.30
    -160.70 (-2.35%)
     
  • AUD/USD

    0.7708
    -0.0171 (-2.17%)
     
  • OIL

    61.66
    -1.87 (-2.94%)
     
  • GOLD

    1,733.00
    -42.40 (-2.39%)
     
  • BTC-AUD

    61,112.56
    +80.50 (+0.13%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • AUD/EUR

    0.6381
    -0.0083 (-1.28%)
     
  • AUD/NZD

    1.0651
    -0.0033 (-0.31%)
     
  • NZX 50

    12,227.29
    +86.63 (+0.71%)
     
  • NASDAQ

    12,909.44
    +81.13 (+0.63%)
     
  • FTSE

    6,483.43
    -168.53 (-2.53%)
     
  • Dow Jones

    30,932.37
    -469.64 (-1.50%)
     
  • DAX

    13,786.29
    -93.04 (-0.67%)
     
  • Hang Seng

    28,980.21
    -1,093.96 (-3.64%)
     
  • NIKKEI 225

    28,966.01
    -1,202.26 (-3.99%)
     

‘Exit strategy’: PM issues stern COVID warning

Lucy Dean
·2-min read
FILE - In this Nov. 17, 2020, file photo, Australian Prime Minister Scott Morrison reviews an honor guard during a ceremony ahead of a meeting at Japanese Prime Minister Yoshihide Suga's official residence in Tokyo. Morrison said Monday, Nov. 30, 2020, a tweet by a Chinese official which shows a fake image of an Australian soldier appearing to slit a child's throat is “truly repugnant." (Kiyoshi Ota/Pool Photo via AP, File)
Australian Prime Minister Scott Morrison. (Kiyoshi Ota/Pool Photo via AP, File)

The days of JobKeeper and a boosted JobSeeker are rapidly coming to an end and Prime Minister Scott Morrison has warned the days of big Government spending are over.

Speaking at the Press Club on Monday, Morrison will say it’s time for Australia to consider its “exit strategy” from the support systems of JobKeeper and JobSeeker.

“We are not running a blank cheque budget,’’ Morrison said in an extract of the speech released early.

“You can’t run the Australian economy on taxpayers’ money forever.”

He said that as more than 90 per cent of jobs lost have already returned, the comeback is gathering pace, requiring a “response where emergency measures are temporary and accompanied by a clear fiscal exit strategy”.

Morrison will also say that as record low rates continue to make debt easier to service than ever, Australia will need to return to pre-pandemic financial settings and “fiscal discipline”.

“While our medium-term strategy remains to stabilise and reduce debt, low interest rates are alleviating debt servicing pressures as lower rates not only apply to new issuances but our pre-existing debt as it rolls over.

“We know that our temporary JobKeeper payments and our many other supports have helped to boost families and businesses balance sheets by more than $200 billion. They have been the game changer for millions of Australians.”

The Treasury department is currently examining tourism industry data with potential for targeted assistance as the international border closures continue to hamstring many businesses.

Morrison will speak today as the Government begins to roll out the COVID-19 vaccine, pledging $1.9 billion to the vaccination effort.

Sign up to Yahoo Finance’s 6-week financial bootcamp here and master your money in 2021.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.

Sign up to the six-week financial bootcamp challenge!
Sign up to the six-week financial bootcamp challenge!