Treasurer Josh Frydenberg has promised to undertake whatever measures are needed to support the economy in the face of the coronavirus when he hands down his second budget on May 12.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Last week the government announced a $17.6 billion stimulus package aimed at businesses being able to keep their staff employed, and giving cash handouts to pensioners and welfare recipients.
Deloitte Access Economics partner Chris Richardson says the government may need to go further.
"We don't yet know how big the problem is," Mr Richardson told ABC television on Sunday.
"We do know we have fired a pretty big bazooka at it. It is possible the problem gets worse."
Mr Frydenberg says the budget is in good shape so the government can stand ready to do more.
"We will undertake the measures necessary to continue to support the economy and to keep Australians in a job," Mr Frydenberg told Sky News.
In the meantime, the government is establishing a coronavirus business liaison unit aimed at building on its existing efforts to support confidence, employment and business continuity.
Based in the Department of Treasury it will engage with peak business groups on issues relating to COVID-19 from Monday to ensure these are being addressed by the government.
"It will also be a source of information for business groups on the Australian government's response to coronavirus and the actions that agencies are taking to support business at this difficult time," Mr Frydenberg said.
"This will allow for information to be disseminated quickly and effectively across the business community."
Labor said it was a welcome but belated step in the right direction
"In order to avoid the problems associated with the bushfire relief packages the government needs to engage with business and unions more actively than they have been," shadow treasurer Jim Chalmers and Labor's industrial relations spokesman Tony Burke said in a statement.
They believe there should also be formal consultation mechanisms for workers and their unions who are just as anxious and just as deserving of better channels of communication and advice.
Labor, unions and business advocates are also concerned there is no help for casual workers or sole traders should they have to self-isolate if they come into contact with COVID-19.
Australian Associated Press
