A very large chunk of fiscal support will disappear at the end of this month as the Australian government 'JobKeeper' wage subsidy program ends.
- Further, the remaining AUD10 bn of loan deferrals are due to expire also.
- "JobKeeper' support has been tapering off but it comes to a full stop in 2 weeks.
Australia has barely begun its vaccination program and thus the economy will be at risk if new coronavirus restrictions are imposed in the case of a renewed outbreak. Australian state governments have been on hair triggers (except for the more nuanced NSW responses) in imposing lockdowns.
Australian Treasurer Josh Frydenberg is meeting with the heads of 15 Australian banks today, Wednesday 17 March 2021, ahead of the cliff edge. Around 1 in 20 home loans are still deferred, as well as just under 3,000 business loans.
Today's meeting is meant to ensure all banks are "pulling in the same direction in the interests of their customers and the Australian economy," says the CEO of the Australian Banking Association Anna Bligh. If the you-know-what hits the fan, good luck with that.
Australian Treasurer Josh Frydenberg when he had more hair:
