Australia: A$130b bazooka – TDS

The Australian Government announced a significant A$130b fiscal package to encourage employers to hold on to their staff for the following six months, economists at TD Securities report.

Key quotes  

“The Australian Government announced the 3rd fiscal package in as many weeks, delivering a $130b stimulus in the form of wage subsidies, going to 6 million workers at a flat rate of $1500 per fortnight, regardless of their salary under the JobKeeper program.”

“This is the biggest fiscal package ever announced in Australia. Fiscal stimulus from the three packages comes in at A$213b, which equates to roughly just under 11% of GDP.” 

“For the AUD, we expect markets to reward those countries and currencies viewed as proactive in addressing risks to growth, so the FX hit should be shallow if any.”