Melbourne suffers under Stage 4 Lockdowns

Melbourne continues to suffer under lockdowns.  Stage 4 lockdowns announced by Victorian Premier, Daniel Andrews, along with shutdowns of particular industries, are said to have delivered a hammer blow to the Australian economy.

Federal Treasury forecasts require Prime Minister, Scott Morrison, to inject substantial amounts of money into Victoria.  This is to avoid prolonging what is already classified as an economic disaster.

Australia’s second-biggest state, by population and economic output, has been in an increased state of reinforced lockdown conditions.  It has been almost a month and will now go into a state of near hibernation for at least another six weeks or more.

The Federal government may need to provide financial aid to sustain Victorian economy to mitigate flow-on effects throughout Australia.

Jobkeeper

The down-turn in economic effects will be felt across Australia.  Many who believe JobKeeper and JobSeeker support can be safely reduced at the end of September, (less than 60 days away) – is a dangerous fantasy.  Melbournians continue to suffer the effects of long term lockdowns.

“That will mean there are less people working less shifts,” Andrews said.  “There is less contact. There is less seeding of this virus from workplaces back into families and throughout the Victorian community.”

A third group will have to temporarily, but entirely, shut down.  Andrews was not able to confirm which industries will fall into which category. However, COVID has spread through some industries such as meat works.  Industries hardest hit have a high count in casual employees where people work within close proximity.

Andrews repeatedly said it is a huge cause for concern that casual workers keep turning up to work when they feel unwell because they fear they will never get another shift.

Stay at Home

The Victorian government offers $300 for people to stay home between getting tested and getting their results.  This is enough to cover a few of their shifts.  However, it raises the question for employees “if you’re thrown off the books, what are you supposed to do after?”

The Government has also provided a $1,500 payment for people who test positive, but take-up has been poor.  Forcibly shutting high-risk industries should stem infections at work, but the cost to workers will be enormous.

The hit will also be felt through the economy across Australia as spending vanishes and the goods and services they supply diminish.  People are losing jobs and it’s older workers who are feeling the effects the most.

Hospitality Sector

Workers in the devastated hospitality sector, who though they could get back to work, now have no chance.  Workers hit hard by this new wave of chaos will need money from the government in order to eat and pay bills.

The question is: which government? The Victorian government’s finances must be nearing their limits.  On the other hand, the Commonwealth apparently has oodles of spare capacity to borrow at the lowest interest rates in history.

Reach out

If you’d like to discuss your financial situation of eligibility for government payments, please reach out to your local Gold Coast financial planning team.  The Advisers at Wealth Planning Partners are available on 07 5593 0855 between 9 and 5 most days.