Morrison government to fork out extra $600m on one-off $750 coronavirus payments

An extra $600m will be spent on one-off $750 coronavirus support payments, after Australians lost their jobs and began receiving welfare.

Josh Frydenberg has urged Australians to use the one-off $750 payments on ‘things that matter most to you’. Picture: AAP

The Morrison government will spend an extra $600m on its special $750 stimulus payments to help low-income Australians during the pandemic, as more people have been forced out of work and onto welfare.

About five million Australians are set to receive the second $750 cash stimulus payment from Wednesday and throughout July, at a total cost of $3.8bn.

Those who will be eligible to receive the cash handout include age pensioners and Australians who are on the disability support pension, family tax benefits and the carer allowance.

“Approximately five million lower-income Australians will receive the second $750 economic support payment this month,” ­Social Services Minister Anne Ruston said.

“This payment is providing additional support to eligible pensioners, families, veterans and concession card holders who do not get the fortnightly corona­virus supplement as part of their current payment.”

When the one-off payments were first announced as part of the government’s initial coronavirus stimulus package, it was expected they would cost $8.8bn but that has been revised up to $9.4bn.

About 6.5 million Australians were expected to receive the first payment, which was paid out in March and April, but as of June 30 more than seven million had been paid the $750 at a cost of $5.6bn.

With Australia facing its first recession in three decades and the reintroduction of some lockdown measures, there are now 1.6 million Australians on the $550 weekly JobSeeker payment. Those who are on JobSeeker do not qualify for the second $750 one-off payment.

Welfare and seniors groups have warned the payments do not go far enough in supporting the most vulnerable Australians, and instead have called for an increase to the rate of Newstart.

Josh Frydenberg, who will hand down his budget update on July 23 and outline the next phase of income support, has urged people to use the temporary $750 cash boost on “things that matter most to you”.

“The Morrison government will continue to do all that is necessary to ensure Australia bounces back stronger on the other side,” the Treasurer said.

“The government is helping to keep businesses in business and Australians in jobs, with $259bn — or 13.3 per cent of GDP — in total economic support.”

Australians eligible for the second $750 payment do not need to do anything to receive it. It will arrive in their bank accounts ­between July 15 and July 31.