tag:theconversation.com,2011:/us/topics/coronavirus-stimulus-program-83862/articlesCoronavirus stimulus program – The Conversation2022-04-28T21:32:41Ztag:theconversation.com,2011:article/1766432022-04-28T21:32:41Z2022-04-28T21:32:41ZYes, US economy may be slowing, but don’t forget it’s coming off the hottest year since 1984 – here’s who benefited in 4 charts<figure><img src="https://images.theconversation.com/files/460409/original/file-20220428-20-bsp6p1.jpg?ixlib=rb-1.1.0&rect=93%2C93%2C6818%2C3751&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Tracking changes in net wealth is one of the best ways to see who benefited from economic growth. </span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/1335148671">Chris Rogers/Photodisc via Getty Images </a></span></figcaption></figure><p>The U.S. economy <a href="https://www.bloomberg.com/news/articles/2022-04-28/u-s-economy-contracted-in-first-quarter-on-surge-in-trade-gap?srnd=premium&sref=Hjm5biAW">unexpectedly shrank</a> in the first quarter, according to <a href="https://www.bea.gov/sites/default/files/2022-04/gdp1q22_adv.pdf">gross domestic product data</a> released on April 28, 2022. While the reasons were technical and weren’t seen as signs of weakness, they <a href="https://www.marketplace.org/2022/04/27/can-the-fed-lower-inflation-without-getting-the-economy-into-a-recession/">add to worries</a> that the U.S. might be headed for another recession as the Federal Reserve seeks to fight inflation by raising interest rates. </p>
<p>But before we fret too much about what 2022 will bring, I believe, as a <a href="https://scholar.google.com/citations?user=VxWst50AAAAJ&hl=en&oi=ao">financial economist</a> who studies the decisions people and companies make with money and the resulting impacts, it’s worth reflecting on 2021, which saw the strongest economic growth in almost four decades. </p>
<p><a href="https://www.bea.gov/data/gdp/gross-domestic-product">GDP</a>, which provides a snapshot of the economy by measuring the total value of all goods and services consumers produce and exchange, <a href="https://fred.stlouisfed.org/series/A191RL1A225NBEA">surged 5.7% in 2021</a> after accounting for inflation, the fastest pace since 1984. </p>
<p>So who benefited from all this growth? </p>
<h2>Record gains in American net worth</h2>
<p>A useful way to assess how economic growth affects individuals is by looking at <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/chart/#quarter:128;series:Net%20worth;demographic:networth;population:all;units:levels">personal financial wealth</a>. This is measured by <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/">net worth</a>, or the difference between what someone owns and owes.</p>
<p>By that measure, it’s likely that the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf">vast majority of Americans</a> are <a href="https://www.jpmorganchase.com/institute/research/household-income-spending/family-cash-balances-income-and-expenditures-trends-through-2021">better off</a> than they were in 2020 – or even before the <a href="https://www.gspublishing.com/content/research/en/reports/2021/02/15/e52e6826-59ec-4c7a-9ebb-732af6ce3946.html">COVID-19 pandemic</a> – meaning they have less debt relative to their assets. This is in no small part thanks to the <a href="https://www.usaspending.gov/disaster/covid-19?publicLaw=all">trillions of dollars in pandemic-related spending</a> by the U.S. government. </p>
<p>Overall, Americans’ <a href="https://www.federalreserve.gov/econres/notes/feds-notes/wealth-inequality-and-covid-19-evidence-from-the-distributional-financial-accounts-20210830.htm">net worth increased</a> by over US$18 trillion during 2021 to $142 trillion, likely the biggest increase ever. </p>
<p>It amounts to an average gain of almost $55,000 for every American. </p>
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<h2>The wealthiest got most of that</h2>
<p>Of course, the average hides tremendous variation across groups.</p>
<p>It’s <a href="https://americansfortaxfairness.org/issue/2-years-covid-u-s-billionaires-1-7-trillion-57-richer/">already been</a> <a href="https://ips-dc.org/u-s-billionaire-wealth-surged-by-70-percent-or-2-1-trillion-during-pandemic-theyre-now-worth-a-combined-5-trillion/">thoroughly</a> <a href="https://www.timesofisrael.com/billionaires-share-of-global-wealth-soars-as-pandemic-widens-inequality-gap-as/">reported</a> that <a href="https://www.aa.com.tr/en/americas/us-billionaires-wealth-soars-70-during-pandemic-report/2396011">billionaires</a> saw their <a href="https://www.cnbc.com/2020/05/21/american-billionaires-got-434-billion-richer-during-the-pandemic.html">wealth soar</a> during the pandemic. <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/compare/chart/">This was driven</a> largely by double-digit gains in the value of their stock holdings and businesses, while their liabilities grew only 1%. </p>
<p>In 2021, the wealthiest 1% of Americans saw their net worth grow $6.7 trillion to about $46 trillion, making up well over a third of the overall gains. Another $6.2 trillion went to the next 9%. Meanwhile, just $1.5 trillion went to the bottom 50%. </p>
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<h2>But those in the bottom half grew the fastest</h2>
<p>The richest may have gotten the most, but the net wealth of the bottom half jumped at the fastest pace. </p>
<p>The bottom 50% saw their wealth grow 64% in 2021. That’s the biggest calendar-year growth of any of these groups since at least 1988, dwarfing the percentage gains of the richest. </p>
<p>This happened largely <a href="https://www.nar.realtor/newsroom/record-high-prices-and-record-low-inventory-make-it-increasingly-difficult-to-achieve-homeownership-particularly-for-black-americans">because homeowners</a> saw real estate <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/compare/chart/#quarter:128;series:Assets;demographic:networth;population:all;units:shares">assets</a> grow a lot faster than <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/compare/chart/#quarter:128;series:Liabilities;demographic:networth;population:all;units:levels">mortgage debts</a>.</p>
<p>While these changes are positive for Americans, both on average and in general, this has not changed the overall distribution of wealth that much. </p>
<p>The bottom half of Americans accounted for 5.5% of the country’s assets before the pandemic and at the end of 2021 owned 5.9%. Though this is the highest level since 2013, it still lags behind levels it saw during the 1990s, when the share rose to nearly 9%.</p>
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<h2>White people gained most, but still saw share fall</h2>
<p>Similar to the income-level story, <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/chart/#quarter:128;series:Net%20worth;demographic:race;population:1,3,5,7;units:levels">most of the gains</a> went to white Americans, who saw their net wealth soar $14.5 trillion in 2021 to $119 trillion. Black Americans gained $1.3 trillion, and Hispanics saw growth of $683 billion. </p>
<p>But the percentage gains were highest for people of color – 26% for African Americans and 24% for Hispanics. That compares with 14% for white Americans.</p>
<p>As a result, the <a href="https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/chart/#quarter:128;series:Net%20worth;demographic:race;population:1,3,5,7;units:shares">overall share held by white people</a> fell to 83.6%, the lowest since at least 1988 and very likely the lowest ever. Black net wealth increased to 4.4% of the pie, the most since 1992. Hispanics held 2.5% of total U.S. net wealth. </p>
<p>For context, non-Hispanic <a href="https://www.census.gov/quickfacts/fact/table/US/PST045221">white Americans make up about 60%</a> of the population, versus 13.4% for Black Americans and 18.5% for Hispanic or Latino Americans.</p>
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<p>What happens next, as economic growth slows, is hard to say. <a href="https://doi.org/10.1016/j.jpubeco.2020.104273">A large chunk of the coronavirus-related aid</a> <a href="https://doi.org/10.1162/rest_a_01043">went to poorer Americans</a>, which helps explain the gains for the bottom 50% as well as for Black people and Latinos. That aid has now ended. </p>
<p>Still, the market for workers remains on fire, with unemployment at 3.6% at the end of March 2022, <a href="https://fred.stlouisfed.org/series/UNRATE">near a half-century low</a>. And <a href="https://www.philadelphiafed.org/surveys-and-data/real-time-data-research/spf-q1-2022">economists</a> have been <a href="https://www.conference-board.org/research/us-forecast">forecasting</a> pretty <a href="https://www.spglobal.com/ratings/en/research/articles/220328-economic-outlook-u-s-q2-2022-spring-chills-12320559">solid</a> growth. </p>
<p>Will this strong economic growth continue?</p>
<p>Count me as one economist hoping Americans continue benefiting from improving job prospects to build wealth – even as the economic picture gets a bit cloudier. </p>
<p>[<em>More than 150,000 readers get one of The Conversation’s informative newsletters.</em> <a href="https://memberservices.theconversation.com/newsletters/?source=inline-150K">Join the list today</a>.]</p><img src="https://counter.theconversation.com/content/176643/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>D. Brian Blank does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Most of the gains went to the richest Americans, but almost everyone saw an improvement in terms of net wealth.D. Brian Blank, Assistant Professor of Finance, Mississippi State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1480032020-10-20T19:04:23Z2020-10-20T19:04:23ZWhy more housing stimulus will be needed to sustain recovery<p>In response to the COVID-19 recession, federal, state and territory governments quickly provided support to the housing industry for two reasons. First, to safeguard jobs and, second, because investment in the housing and construction industries has a high economic multiplier effect. However, <a href="https://www.ahuri.edu.au/research/final-reports/341">new research</a> released today shows further housing stimulus measures will be essential to help drive an economic recovery into 2021 and beyond. </p>
<p>Our research found the various stimulus programs to date are too small to have a big impact on an economic recovery. It also found non-residential construction, followed by residential construction and then infrastructure spending, has the highest multiplier effect – the increases in activity and incomes that flow on through the economy. </p>
<p>The housing industry welcomed the A$680 million <a href="https://treasury.gov.au/coronavirus/homebuilder">HomeBuilder</a> grant and related state and territory measures announced in June to stimulate consumer demand. But, following such measures, <a href="https://www.ahuri.edu.au/research/final-reports/341">our research</a> suggests further investment focused on housing supply, in particular social housing, will be needed to sustain a recovery.</p>
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Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
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<h2>The stimulus so far</h2>
<p>The pandemic prompted numerous industry reports warning of huge job losses and recommending the best ways to support the housing industry. Most suggested multi-billion-dollar consumer stimulus measures. A number recommended <a href="https://cg.cfmeu.org/news/cfmeu-and-mba-call-10b-social-housing-stimulus-package">massive investment in social housing</a>. </p>
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Read more:
<a href="https://theconversation.com/top-economists-back-boosts-to-jobseeker-and-social-housing-over-tax-cuts-146914">Top economists back boosts to JobSeeker and social housing over tax cuts</a>
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<p><a href="https://www.ahuri.edu.au/research/final-reports/341">Our research</a> shows widespread industry support for the demand-side stimulus by governments. Cash grants have already <a href="https://www.abc.net.au/news/2020-10-15/homebuilder-applications-extension-deadline/12769132">increased new land and house sales significantly</a> in most states and territories, which will feed through into building work. The exception is New South Wales where the HomeBuilder policy was <a href="https://www.smh.com.au/national/nsw/homebuilder-scheme-fails-sydney-with-fewer-than-1000-lots-expected-to-be-eligible-20200617-p553im.html">not expected to have much of an impact</a> in Sydney due to the <a href="https://theconversation.com/scott-morrisons-homebuilder-scheme-is-classic-retail-politics-but-lousy-economics-140076">A$750,000 price cap on eligibility</a>. </p>
<p>The table below shows the grants available to new home buyers in each state and territory. Stamp duty concessions are also available in all but one. </p>
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<a href="https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Table showing grants available to first home buyers in each state and territory" src="https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=453&fit=crop&dpr=1 600w, https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=453&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=453&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=569&fit=crop&dpr=1 754w, https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=569&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/364147/original/file-20201019-23-gnacas.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=569&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>Given the size of this helping hand, it is hardly surprising many households are looking to take advantage of the schemes. The level of success in Western Australia has resulted in the state government <a href="https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/10/Building-Bonus-extension-to-provide-WA-job-certainty.aspx">announcing</a> an extension to its building bonus scheme to meet demand and help sustain new building activity into 2022. </p>
<h2>The building gap</h2>
<p>Even before the pandemic, building activity had declined significantly. COVID-19 made things worse. </p>
<p>New dwelling commencements in 2019-20 are <a href="https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/latest-release">down significantly</a> on just two years ago, ranging from a fall of 18% in South Australia to 29% in NSW and Queensland. The exception is Tasmania where commencements have risen by 15%. The total fall in the six states over this period is 53,000 commencements.</p>
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<a href="https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="chart showing fall in number of dwelling units commenced" src="https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=747&fit=crop&dpr=1 600w, https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=747&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=747&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=938&fit=crop&dpr=1 754w, https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=938&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/364167/original/file-20201019-21-xisl3r.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=938&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>The federal government expects HomeBuilder to stimulate the building of <a href="https://www.pm.gov.au/media/homebuilder-program-drive-economic-activity-across-residential-construction-sector">27,000 housing units</a>, with the extended first home loan deposit scheme to add another <a href="https://www.nhfic.gov.au/what-we-do/fhlds/">10,000 units</a>. Much of this demand will be <a href="https://www.corelogic.com.au/news/vacuum-effect-and-its-implications-homebuilder-scheme">pulled forward</a> from 2021-22, as tends to be the case with grants. </p>
<p>As a result, from mid-2021 yet more stimulus will be needed to sustain industry activity. This assumes <a href="https://theconversation.com/1-4-million-less-than-projected-how-coronavirus-could-hit-australias-population-in-the-next-20-years-143544">population growth</a> remains low. </p>
<p>Ultimately, if government is going to use the housing industry to support an economic recovery, the stimulus will have to be much bigger. This might just get the industry back to pre-COVID levels. </p>
<p>One way to plug some of the gap would be large <a href="https://theconversation.com/social-housing-was-one-hell-of-a-missed-budget-opportunity-but-theres-time-147665">investment in social housing</a>. So far, though, only the states have committed to funding refurbishment and construction of social housing. </p>
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Read more:
<a href="https://theconversation.com/social-housing-was-one-hell-of-a-missed-budget-opportunity-but-theres-time-147665">Social housing was one hell of a missed budget opportunity, but there's time</a>
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<p>Compare the A$680 million HomeBuilder funding to the Australian government’s GFC response. The <a href="http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf">A$5.6 billion Social Housing Initiative</a> delivered almost 20,000 social housing units. Another A$5.8 billion went into the <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview200910/Housing">First Home Owner Boost</a> and <a href="http://andrewleigh.org//pdf/FiscalStimulus_SenateReport.pdf">Energy-Efficient Homes</a> packages. </p>
<p>The Community Housing Industry Association (CHIA) has <a href="https://www.communityhousing.com.au/wp-content/uploads/2020/05/SHARP-Full-Report-1.pdf?x59559">called for</a> a A$7.7 billion federal stimulus package to expand Australia’s social housing supply by 30,000 homes. It has also detailed the economic benefits of such investment. Of course, there are long-term social benefits as well. </p>
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Read more:
<a href="https://theconversation.com/after-covid-well-need-a-rethink-to-repair-australias-housing-system-and-the-economy-145437">After COVID, we'll need a rethink to repair Australia's housing system and the economy</a>
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<h2>Further stimulus measures</h2>
<p>Almost all interventions distort markets and most create unintended behavioural effects, such as people bringing forward existing plans. But we should remember that the housing industry, as a <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp2021/Quick_Guides/EmployIndustry">major employer</a>, is an effective way to stimulate the economy. </p>
<p><a href="https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19">Internationally</a>, governments have been spending big on housing-related infrastructure, social housing and measures to improve the environmental sustainability of new and existing housing. Australia’s stimulus measures are small by comparison.</p>
<p>Housing activity is likely to slump when the current stimulus measures end. <a href="https://theconversation.com/coronavirus-shows-housing-costs-leave-many-insecure-tackling-that-can-help-solve-an-even-bigger-crisis-137772">High unemployment</a> and <a href="https://www.ampcapital.com/au/en/insights-hub/articles/2020/june/econosights-coronavirus-and-migration-impacts-to-Australia-from-lower-population-growth">low population growth</a> are not great ingredients for a building recovery. Industry will call for further support. While states have their own stimulus measures, they need support from federal government to stimulate the level of new build activity the economy needs. </p>
<p>Any further demand-side incentives should be tailored to the characteristics of individual markets and targeted where most needed – multi-residential development, for example. A one-size-fits-all approach will not work or be an effective use of taxpayer money. It is possible not all markets will require further intervention.</p>
<p>However, large-scale funding of <a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">social housing infrastructure is essential</a> from a range of economic and social perspectives. For example, outcomes are more predictable because the number of extra units the investment delivers is more or less guaranteed. And this building activity is not reliant on private sector demand. </p>
<p>Immediate tax reform to encourage institutional investment in affordable housing and <a href="https://theconversation.com/build-to-rent-could-shake-up-real-estate-but-wont-take-off-without-major-tax-changes-119603">build-to-rent</a> developments could help stimulate activity and deliver housing for those in need. </p>
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Read more:
<a href="https://theconversation.com/build-to-rent-could-shake-up-real-estate-but-wont-take-off-without-major-tax-changes-119603">Build to rent could shake up real estate but won't take off without major tax changes</a>
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<p>Governments need to pay attention to changing patterns of consumer demand and invest in areas with demand pressures. This is likely to be an issue in regional Australia where markets are often slow to respond to demand changes. Many households in the capital cities are <a href="https://www.abc.net.au/news/2020-08-26/regional-city-property-markets-covid-urban-tree-changer/12541598">showing interest</a> in moving to regional areas as COVID-19 continues to shape preferences for different locations and housing designs. </p>
<p>The COVID-19 housing story is far from over. </p>
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Read more:
<a href="https://theconversation.com/how-might-covid-19-change-what-australians-want-from-their-homes-145626">How might COVID-19 change what Australians want from their homes?</a>
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<p class="fine-print"><em><span>Steven Rowley receives funding from the Australian Housing and Urban Research Institute, the Bankwest Curtin Economics Centre and the Australian Research Council. He is a member of the Housing Industry Forecasting Group in Western Australia</span></em></p><p class="fine-print"><em><span>Adam Crowe is an RTP Stipend Scholarship and Curtin Research Scholarship recipient. </span></em></p><p class="fine-print"><em><span>Catherine Gilbert receives funding from the Australian Housing and Urban Research Institute and the Community Housing Industry Association NSW</span></em></p><p class="fine-print"><em><span>In addition to his primary academic affiliation, Chris Leishman is a non-executive director of Housing Choices Australia. He receives funding from the Australian Housing and Urban Research Institute and the UK's Economic and Social Research Council (ESRC).</span></em></p><p class="fine-print"><em><span>Jian Zuo receives funding from the Australian Housing and Urban Research Institute and Australian Research Council.</span></em></p>Current housing stimulus measures aim to boost buyer demand and are too small to sustain a recovery. A second round of stimulus is likely to be needed, and it should go into social housing supply.Steven Rowley, Professor; School of Economics, Finance and Property, and Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin UniversityAdam Crowe, PhD Candidate, School of Design and the Built Environment, Curtin UniversityCatherine Gilbert, Postdoctoral Research Associate, University of SydneyChris Leishman, Professor of Housing Economics, University of AdelaideJian Zuo, Professor, School of Architecture and Built Environment, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1476032020-10-07T05:10:36Z2020-10-07T05:10:36ZIt’s not the size of the budget deficit that counts; it’s how you use it<figure><img src="https://images.theconversation.com/files/362080/original/file-20201007-22-gxszoh.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C1000%2C552&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>In putting together his unprecedented pandemic budget, Treasurer Josh Frydenberg had two big tasks: to support the economy now, and to kick-start the next boom.</p>
<p>Many commentators seem to be enamoured by the size of the spend. But once you dig into the details, it’s a mixed bag.</p>
<p>The 2020 budget certainly delivers on boosting business investment and hiring, and the tax cuts will help lift employment and activity.</p>
<p>But overall it’s a bit light on direct stimulus – spending to support those who have lost their incomes and boost consumer demand. It doesn’t do enough for the economy now, when a boost is needed most. And it lacks a coherent reform narrative around driving the economy out of this crisis better than it went in.</p>
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Read more:
<a href="https://theconversation.com/budget-2020-at-a-glance-the-cuts-the-spends-and-that-big-deficit-in-7-charts-147016">Budget 2020 at a glance: the cuts, the spends, and that big deficit in 7 charts</a>
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<h2>Employment and business incentives</h2>
<p>Let’s start with the good.</p>
<p>Bringing forward scheduled income tax cuts and increasing the <a href="https://www.ato.gov.au/individuals/income-and-deductions/offsets-and-rebates/low-and-middle-income-earners/">tax offset</a> for low-income earners is good news, despite misgivings among some economists.</p>
<p>They will provide some stimulus via increased spending over the next two years. They will also make it cheaper for businesses to take on workers, and more worthwhile for workers to take on more hours. Research <a href="https://www.aeaweb.org/articles?id=10.1257/jel.49.4.961">backs this up</a>.</p>
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Read more:
<a href="https://theconversation.com/the-budgets-tax-cuts-have-their-critics-but-this-year-they-make-fiscal-sense-147015">The budget's tax cuts have their critics, but this year they make fiscal sense</a>
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<p>Encouraging business investment is another good priority. There is strong evidence from schemes in the US that the A$27 billion allocated to enable businesses to deduct the full cost of new assets installed up to June 2022 will <a href="https://www.sciencedirect.com/science/article/abs/pii/S0047272719301458">boost investment</a>, driving <a href="https://www.aeaweb.org/articles?id=10.1257/aeri.20190041">jobs and higher wages</a> over the next few years. Other business incentives, around hiring and R&D, are also welcome.</p>
<p>The budget also contains many worthy smaller measures. For example, it is great to see the government commit an extra A$101 million to double the number of Medicare-subsidised therapy sessions from 10 to 20 per year. Hopefully there will be more support to come for mental health and suicide prevention as the government delivers reviews into these areas.</p>
<h2>Investment sleight of hand</h2>
<p>Now on to the not-so-good.</p>
<p>First, the A$27 billion for instant asset write-offs is a bit of a sleight of hand. The measure allows businesses to write off investments up front instead of depreciating them over time. So businesses will pay less tax now but more later.</p>
<p>This is why the budget shows a reduction in tax receipts over the first three years, but an increase in year four. Expenses are brought forward to year one even for investments they were going to undertake anyway. The economic benefit – which is real, to be clear – is purely in businesses not having to wait for those tax benefits.</p>
<p>And it is not an investment allowance, as some have called it, which would provide a subsidy on top of allowing a business to expense the assets up front. Research suggests a true investment allowance such as the <a href="https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-07.pdf">GFC Investment Tax Break</a> given to Australian business during the Global Financial Crisis, would have boosted investment even more.</p>
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<figcaption><span class="caption">The Conversation’s Business & Economy editor Peter Martin explains the 2020 budget in three minutes.</span></figcaption>
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<h2>This budget just isn’t very stimulating</h2>
<p>Now on to the not good at all.</p>
<p>Though the tax cuts provide some stimulus to the economy, it will not be as much as direct cash payments. And you only receive the tax cuts – more than A$2,000 a year for many taxpayers – if you work.</p>
<p>The government’s main instruments for direct stimulus – the JobKeeper and JobSeeker payments – are already being wound back (with JobKeeper ending in March 2021), which will pull a massive amount of demand out of the economy.</p>
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Read more:
<a href="https://theconversation.com/budget-2020-promising-tax-breaks-but-relying-on-hope-147012">Budget 2020: promising tax breaks, but relying on hope</a>
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<p>US research on the effect of the US government’s <a href="https://www.nber.org/papers/w27097">US$2.2 trillion stimulus package</a> shows government payments to households significantly boosted spending in a matter of weeks, with 25 to 40 cents in every dollar of stimulus being spent.</p>
<p>But this budget offers little in the way of direct cash payments. The government has committed to two modest $250 payments to certain welfare recipients, but the second won’t arrive for another five months.</p>
<p>The direct stimulus that is on offer will provide some support, but not nearly the volume required.</p>
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<h2>Green waste</h2>
<p>By far the budget’s biggest snub is the almost complete absence of green stimulus – specifically, investment in carbon-reduction efforts. This spending is all the more critical in the absence of an economy-wide carbon price.</p>
<p>Green stimulus offers the prospect of a triple economic dividend: it generates activity and jobs today, it prevents an impending environmental calamity, and it creates the industries and jobs of the future.</p>
<p>Other countries are seizing COVID-19 as an opportunity to make inroads towards their emissions-reduction targets. France, for example, <a href="https://www.iisd.org/sustainable-recovery/news/french-stimulus-package-about-e30-billion-for-green-recovery-measures/">has devoted</a> a third of its stimulus to green measures.</p>
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Read more:
<a href="https://theconversation.com/creative-destruction-the-covid-19-economic-crisis-is-accelerating-the-demise-of-fossil-fuels-143739">Creative destruction: the COVID-19 economic crisis is accelerating the demise of fossil fuels</a>
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<p>Using the most generous possible definition, only about 1% of new Australian government spending over the next four years will go to environmental initiatives. This is a tremendous missed opportunity.</p>
<p>So, overall, the budget is a mixed bag. There are some welcome stimulus measures, but some critical ones missing. The government has a lot more work to do to kick start a new golden era of economic growth.</p>
<p>Let’s hope the Treasurer delivers on that in his next budget, due in just seven months.</p><img src="https://counter.theconversation.com/content/147603/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Hamilton is Chief Economist at Blueprint Institute, a not-for-profit research institute.</span></em></p>Despite its big sticker price, the 2020 federal budget just isn’t that stimulating.Steven Hamilton, Visiting Fellow, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1421692020-07-26T19:53:13Z2020-07-26T19:53:13ZHomeBuilder only makes sense as a nod to Morrison’s home-owning base<p><a href="https://treasury.gov.au/coronavirus/homebuilder">HomeBuilder</a> grants of A$25,000 are being offered to build or renovate a home as part of the Australian government’s <a href="https://treasury.gov.au/sites/default/files/2020-05/Overview-Economic_Response_to_the_Coronavirus_3.pdf">emergency economic response</a> to the coronavirus pandemic. <a href="https://theconversation.com/homebuilder-might-be-the-most-complex-least-equitable-construction-jobs-program-ever-devised-140162">Critics</a> note that the program, framed as stimulus for residential construction, benefits already well-off households. It ignores the realities of the housing market, especially the affordability crisis, with housing stress affecting precarious renters, the homeless and those struggling with bloated mortgage payments. </p>
<p>Homebuilder appears to be a <a href="https://theconversation.com/homebuilder-might-be-the-most-complex-least-equitable-construction-jobs-program-ever-devised-140162">bewildering policy</a>. It’s likely to support construction work that <a href="https://theconversation.com/scott-morrisons-homebuilder-scheme-is-classic-retail-politics-but-lousy-economics-140076">would have occurred anyway</a> while failing to meet <a href="https://theconversation.com/homebuilder-misses-a-chance-to-make-our-homes-perform-better-for-us-and-the-planet-140067">real housing needs</a>.</p>
<p>However, to criticise HomeBuilder simply as bad policy made on the run is to miss a broader picture. HomeBuilder begins to make a lot more sense when understood as a response to the role of housing assets in shaping both economic inequality and electoral politics. </p>
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Read more:
<a href="https://theconversation.com/scott-morrisons-homebuilder-scheme-is-classic-retail-politics-but-lousy-economics-140076">Scott Morrison’s HomeBuilder scheme is classic retail politics but lousy economics</a>
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<h2>The rise of the ‘asset economy’</h2>
<p>We describe this dynamic as the “<a href="https://politybooks.com/bookdetail/?isbn=9781509543458">asset economy</a>”: our socio-economic positions are defined less and less by employment income and more and more by our holdings of wealth-generating assets, especially housing.</p>
<p>The government has touted HomeBuilder as boosting construction jobs through a “tradie-led” recovery. House-price inflation has made the economy particularly dependent on construction jobs. <a href="https://australianjobs.employment.gov.au/jobs-industry/industry-overview">Construction</a> is the third-biggest employer in Australia and the only industry outside the services sector to have had significant job growth in recent years. </p>
<p>However, the government could have boosted construction jobs at least as much, if not more, by investing in <a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">social housing</a> or <a href="https://theconversation.com/homebuilder-misses-a-chance-to-make-our-homes-perform-better-for-us-and-the-planet-140067">energy-efficient housing</a>. Why then did it choose to make the already well-off even better off by paying owners to add value to their homes?</p>
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Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
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<h2>A long history of looking after home owners</h2>
<p>It’s no coincidence that, beyond the initial emergency responses to support household and business incomes, the first substantive stimulus the Coalition government announced went to residential property owners. </p>
<p>The rise of the asset economy has occurred in <a href="https://www.thesaturdaypaper.com.au/news/politics/2020/06/13/who-morrison-looking-after/15919704009961">parallel with a shift in voting patterns</a>. The 2019 <a href="https://australianelectionstudy.org/wp-content/uploads/The-2019-Australian-Federal-Election-Results-from-the-Australian-Election-Study.pdf">Australian Election Study</a> observed a move “away from occupation-based voting and towards asset-based voting”. Voters who own housing – owner-occupiers and investors – strongly favour the Liberal and National parties. </p>
<p><a href="https://www.sydney.edu.au/arts/our-research/futurefix/asset-ownership-and-the-new-inequality.html">Our research</a> on the asset economy reveals the long-term drivers of Australia’s asset-based politics. HomeBuilder is the latest in a long line of Australian government policies over the past four decades to encourage, prop up and reward residential property ownership. These policies have included selling off public housing, tax incentives (especially <a href="https://grattan.edu.au/wp-content/uploads/2016/04/872-Hot-Property.pdf">negative gearing and capital gains tax exemption</a> for the family home) and promoting home ownership as an alternative to welfare programs such as public pensions. </p>
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Read more:
<a href="https://theconversation.com/fall-in-ageing-australians-home-ownership-rates-looms-as-seismic-shock-for-housing-policy-120651">Fall in ageing Australians' home-ownership rates looms as seismic shock for housing policy</a>
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<p>These policies have not simply encouraged home ownership – they have transformed it. Nowadays the <a href="https://theconversation.com/explainer-the-financialisation-of-housing-and-what-can-be-done-about-it-73767">home is a financial asset</a>, an investment financed by growing debt that is supposed to generate capital gains. </p>
<p>Property price increases, driven by the liberalisation of credit and low interest rates, came to be seen as a key route to economic security for households in an economy with <a href="https://theconversation.com/theres-an-obvious-reason-wages-arent-growing-but-you-wont-hear-it-from-treasury-or-the-reserve-bank-122041">stagnant wages</a> and <a href="https://theconversation.com/self-employment-and-casual-work-arent-increasing-but-so-many-jobs-are-insecure-whats-going-on-100668">precarious employment</a>. Credit-driven home ownership expanded and property prices grew. Many property-owning households saw major gains in their wealth portfolios. </p>
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Read more:
<a href="https://theconversation.com/homebuilder-might-be-the-most-complex-least-equitable-construction-jobs-program-ever-devised-140162">HomeBuilder might be the most-complex least-equitable construction jobs program ever devised</a>
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<h2>Housing is now a driver of inequality</h2>
<p>Credit-driven home purchases pushed prices to heights where it became increasingly difficult for people to enter the market. In Australia as well as in other Anglo-capitalist countries ― including the United Kingdom, the United States and Canada ― rates of home ownership show the <a href="https://www.tandfonline.com/doi/full/10.1080/13563467.2017.1401055">same pattern from 1980 to 2020</a>: increases followed by decreases. </p>
<p>In large cities such as Sydney and Melbourne price inflation over time has made it virtually impossible to buy a house on the basis of an average wage alone. As a result, <a href="https://www.abc.net.au/news/2019-07-17/home-ownership-falling-while-more-people-are-renting-abs-study/11318070?nw=0">private rental markets have expanded</a>, rents have soared and <a href="https://www.tandfonline.com/doi/full/10.1080/14649365.2018.1466355">new modes of occupancy</a> have emerged, including <a href="https://theconversation.com/why-adult-children-stay-at-home-looking-beyond-the-myths-of-kidults-kippers-and-gestaters-68931">multigenerational</a> and <a href="https://theconversation.com/generation-share-why-more-older-australians-are-living-in-share-houses-107183">shared living</a>. These renters are not simply locked out of home ownership but also out of the wealth it generates. </p>
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<a href="https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Graph showing changes in rates of home ownership and rental by households from 1994-95 to 2017-18" src="https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=582&fit=crop&dpr=1 600w, https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=582&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=582&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=731&fit=crop&dpr=1 754w, https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=731&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/349281/original/file-20200724-15-1ok5wa8.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=731&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="source" href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">Source: AIHW. Data: ABS 2019</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<p>These trends have opened up a rift between those with and without housing assets. This entails not just major differences in levels and patterns of wealth accumulation, but also in <a href="https://theconversation.com/life-chances-policy-must-respond-to-the-real-lives-of-young-people-27425">life chances</a>. The asset economy has fundamentally <a href="https://journals.sagepub.com/doi/full/10.1177/0308518X19873673">reworked the social structure</a>, or what sociologists study as patterns of “class” or “stratification”. </p>
<p>This means even when people have similar jobs or earn the same wages, deep inequalities can exist between those who own assets and those who do not. </p>
<p>These trends are particularly notable among younger generations, giving rise to stark new forms of inequality. Those who are set to inherit housing assets or whose access to parental wealth offers a route into home ownership have a distinct advantage. They can benefit from property-based asset inflation and capital gains.</p>
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Read more:
<a href="https://theconversation.com/the-housing-boom-propelled-inequality-but-a-coronavirus-housing-bust-will-skyrocket-it-139039">The housing boom propelled inequality, but a coronavirus housing bust will skyrocket it</a>
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<h2>Shoring up the base in a crisis</h2>
<p>HomeBuilder is a product of the electoral politics that emerged out of this asset economy. Asset owners vote with their feet and resist any changes that would jeopardise the long-lived advantages that asset ownership gives them. The result of the 2019 <a href="https://www.abc.net.au/news/2019-05-15/federal-election-2019-alp-capital-gains-tax-negative-gearing/11108734?nw=0">federal election</a>, when Labor’s policy was to reduce the benefits available from negative gearing and the capital gains tax discount, showed this. </p>
<p>The government knows as long as it keeps in place the advantages that flow to home owners, residential property investors and the “bank of mum and dad”, they form a powerful core of the Coalition’s electoral base. It’s offering a stimulus measure directed specifically at this constituency, adding yet more value to their assets at a time of economic uncertainty. HomeBuilder is an asset owner’s policy aimed at appeasing and shoring up the Liberal-National party’s <a href="https://7ampodcast.com.au/episodes/the-power-of-tradesmen">electoral base</a>. </p>
<p>As home ownership rates decline and asset-based inequalities increase, just how long such tactics can produce electoral success remains a critical question.</p><img src="https://counter.theconversation.com/content/142169/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Voters who own housing are strongly invested in increasing the value of their wealth-generating assets. And they strongly favour the Coalition, which knows to protect their interests.Lisa Adkins, Professor of Sociology and Head of School of Social and Political Sciences, University of SydneyGareth Bryant, Senior Lecturer in Political Economy, University of SydneyMartijn Konings, Professor of Political Economy and Social Theory, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1421762020-07-22T19:53:12Z2020-07-22T19:53:12ZCycling and walking can help drive Australia’s recovery – but not with less than 2% of transport budgets<figure><img src="https://images.theconversation.com/files/348336/original/file-20200720-33-5f1r73.jpg?ixlib=rb-1.1.0&rect=0%2C20%2C4608%2C3428&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/brisbanequeenslandaustralia21-october-2019-aussie-riding-along-1555145036">Shutterstock</a></span></figcaption></figure><p>What do <a href="https://bicyclensw.org.au/wp-content/uploads/2020/05/966-0320-Summary-of-Principles-for-Good-Bike-Infrastructure-070520.pdf">bike paths</a> and <a href="https://theconversation.com/city-temperatures-and-city-economics-a-hidden-relationship-between-sun-and-wind-and-profits-116064">walk-friendly streets</a> have to do with economic recovery from a pandemic-induced <a href="https://theconversation.com/how-will-the-coronavirus-recession-compare-with-the-worst-in-australias-history-136379">recession</a>? How could removing a car parking space <a href="https://www.bloomberg.com/news/articles/2015-03-13/every-study-ever-conducted-on-the-impact-converting-street-parking-into-bike-lanes-has-on-businesses">benefit a local business</a>? Instead of considering such questions, <a href="https://doi.org/10.1016/j.erss.2020.101486">building roads for cars</a> is often seen as the obvious answer to “kick-start” the economy. </p>
<p>In this article, we explain how cycling and walking infrastructure is a better investment for recovery. Every kilometre walked or cycled has an <a href="https://doi.org/10.1016/j.tranpol.2008.11.001">economic</a> <a href="https://www.atap.gov.au/mode-specific-guidance/active-travel/5-estimation-of-benefits">benefit</a> by reducing traffic congestion and vehicle operating costs, improving health and the environment, and saving on infrastructure spending. It’s <a href="https://www.euro.who.int/en/health-topics/disease-prevention/physical-activity/publications/2008/economic-analyses-of-transport-infrastructure-and-policies-including-health-effects-related-to-cycling-and-walking-a-systematic-review">estimated</a> every dollar invested in cycling infrastructure may reap up to five dollars’ worth of benefits.</p>
<p>In Australia, however, walking and cycling only receive between <a href="https://bicyclensw.org.au/lagging-behind-the-pack-correction/">0.1%</a> and <a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574">2%</a> of transport budgets. </p>
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Read more:
<a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574">Cycling and walking are short-changed when it comes to transport funding in Australia</a>
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<p>A sustained lack of investment is one reason only <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyReleaseDate/7DD5DC715B608612CA2581BF001F8404?OpenDocument">5% of trips to work</a> in Australia are by foot or bicycle. Yet the majority of city journeys are <a href="https://www.vichealth.vic.gov.au/-/media/ProgramsandProjects/PlanningHealthyEnvironments/Attachments/vhtransch3.pdf?la=en&hash=BD49C15BA932B97CF11275C5EE7CEA85A17176F3">short enough to walk or cycle</a> for most people. </p>
<p>With <a href="https://theconversation.com/cars-rule-as-coronavirus-shakes-up-travel-trends-in-our-cities-142175">people now shunning public transport</a>, our roads are becoming even more congested. In a win-win scenario, walk-friendly and bike-friendly <a href="https://healthyactivebydesign.com.au/design-features/movement-networks">design</a> can improve driving conditions, because fewer vehicles clog the roads. So instead of just building roads, is now not the time also to invest in <a href="https://healthyactivebydesign.com.au/design-features/movement-networks">proper</a> walking and cycling infrastructure? </p>
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Read more:
<a href="https://theconversation.com/cars-rule-as-coronavirus-shakes-up-travel-trends-in-our-cities-142175">Cars rule as coronavirus shakes up travel trends in our cities</a>
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<h2>Road building versus path building</h2>
<p>Road building is typically <a href="https://doi.org/10.1016/j.erss.2020.101486">depoliticised</a> and so is widely <a href="https://doi.org/10.1016/j.erss.2020.101486">seen as a legitimate way</a> to stimulate economic growth. But simply building more roads may not reduce traffic or speed up journey times in the long term.</p>
<p>Road building leads to more traffic through <a href="https://theconversation.com/do-more-roads-really-mean-less-congestion-for-commuters-39508">induced car use</a> and <a href="https://doi.org/10.1016/j.erss.2020.101486">car dependence</a>. If the default option for short journeys is driving, <a href="https://theconversation.com/rethinking-traffic-congestion-to-make-our-cities-more-like-the-places-we-want-them-to-be-111614">congestion ultimately gets worse</a> as the population grows.</p>
<p>Australians make <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyreleasedate/7DD5DC715B608612CA2581BF001F8404?OpenDocument">three-quarters</a> of all trips to work by car. Most have no passengers. </p>
<p>Yet more than half of car journeys in cities are <a href="https://www.vichealth.vic.gov.au/-/media/ProgramsandProjects/PlanningHealthyEnvironments/Attachments/vhtransch3.pdf?la=en&hash=BD49C15BA932B97CF11275C5EE7CEA85A17176F3">shorter than 5km</a>. These trips would be <a href="https://www.atap.gov.au/mode-specific-guidance/active-travel/5-estimation-of-benefits">well suited to walking and cycling</a>. <a href="https://healthyactivebydesign.com.au/design-features/movement-networks">Safe and enticing</a> walkable streets and cycling paths are key to inducing this swap. </p>
<p>Australia has already committed billions of dollars to <a href="https://www.smh.com.au/national/nsw/first-look-inside-sydney-s-3-billion-northconnex-tunnel-20200622-p554zh.html">road-building</a> projects as well as community infrastructure to “<a href="https://www.facebook.com/watch/live/?v=301290454378292&ref=watch_permalink">grow out of the COVID-19 recession</a>”. Ultimately, though, if we want less traffic, we need to invest more of this money in walkable streetscapes and safe separated bike paths. </p>
<p>This investment will increase walking and cycling, leading to the many benefits that flow from these behaviours. And enticing people out of their <a href="https://theconversation.com/to-get-people-out-of-cars-we-need-to-know-why-they-drive-27279">comfy cars</a> for short journeys will result in fewer trips by car. </p>
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Read more:
<a href="https://theconversation.com/do-the-sums-bicycle-friendly-changes-are-good-business-58213">Do the sums: bicycle-friendly changes are good business</a>
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<h2>What transport budgets tell us</h2>
<p>Comparing Australian budgets to other countries’ investment in active transport modes, we’re not doing well. Budgets would have to increase at least tenfold to achieve the United Nations recommendation that <a href="https://europa.eu/capacity4dev/file/31600/download?token=jJbDKsE3">20% of the transport budget</a> be invested in “non-motorised transport”. </p>
<p>And many countries have moved rapidly to commit major investments to cycling and walking since COVID-19. For example, <a href="https://static.rasset.ie/documents/news/2020/06/draft-programme-for-govt.pdf">Ireland</a> recently committed <a href="https://www.forbes.com/sites/carltonreid/2020/06/15/former-bike-shop-owner-soon-to-be-irelands-prime-minister-secures-1-million-a-day-for-5-years-boost-for-walking-and-cycling/#bd04c8a5c012">billions of euros</a> to walking and cycling infrastructure, equivalent to 20% of its transport budget. </p>
<p>Considering our lack of investment, it’s easy to see why Australia is car-dependent. This is despite Australia having both great <a href="https://www.sciencedirect.com/science/article/pii/S0966692314001951">weather</a> and <a href="https://bicyclensw.org.au/big-country-wider-car-lanes/">wide roads</a> to accommodate increased space for cycling and walking. </p>
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Read more:
<a href="https://theconversation.com/physical-distancing-is-here-for-a-while-over-100-experts-call-for-more-safe-walking-and-cycling-space-137374">Physical distancing is here for a while – over 100 experts call for more safe walking and cycling space</a>
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<h2>An equity issue</h2>
<p><a href="https://profile.id.com.au/australia/car-ownership">Many</a> Australians, for reasons of disadvantage, disability or age, may not have access to a car. The typical cost of owning a car is <a href="https://www.savings.com.au/car-loans/ongoing-car-costs">A$300 per week</a>. Increasing spending on walking and cycling infrastructure will therefore improve equity by helping low-income earners and others who need inexpensive mobility. </p>
<p>Poor active transport infrastructure disproportionately <a href="https://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0016/321154/On-the-Go-How-women-get-around-our-city.pdf">disadvantages women</a>. They cycle less than men and report a need for the safety of separated cycleways among other infrastructure. </p>
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Read more:
<a href="https://theconversation.com/own-a-bike-you-never-ride-we-need-to-learn-how-to-fail-better-at-active-transport-126112">Own a bike you never ride? We need to learn how to fail better at active transport</a>
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<p>Poor infrastructure also <a href="https://aifs.gov.au/cfca/publications/relationship-between-transport-and-disadvantage-austr">limits</a> children, older adults and people living with a disability from accessing the services they need. Many older Australians depend on public transport and on the quality of the walking environment around their homes and their most common destinations. </p>
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<p>On average, <a href="https://www.budgetdirect.com.au/car-insurance/research/car-accident-statistics.html">three people a day die</a> on Australian roads. Fewer car trips would help reduce the road toll. Similarly, increased investments in separated spaces for cycling and walking, as well as lower speeds on local streets, will reduce collisions between cars and bikes, as well as pedestrian-motorist conflicts. </p>
<h2>COVID-19 provides a unique opportunity</h2>
<p>COVID-19 has led to a <a href="https://www.theguardian.com/lifeandstyle/2020/apr/22/bicycles-are-the-new-toilet-paper-bike-sales-boom-as-coronavirus-lockdown-residents-crave-exercise">boom</a> in bicycle sales, <a href="https://t.co/uzUch4mVEH?amp=1">reduced</a> speed limits, wider footpaths, <a href="https://www.transport.nsw.gov.au/news-and-events/media-releases/new-pop-up-cycleways-to-help-us-get-back-to-work-and-school">pop-up</a> bicycle <a href="https://www.theage.com.au/national/victoria/car-parks-out-footpaths-and-cycling-lanes-in-as-city-prepares-for-post-covid-commuters-20200507-p54qrp.html">lanes</a>, increased walking and <a href="https://doi.org/10.32866/001c.13405">new cyclists</a>. Some of this has come about following <a href="https://www.newcastleherald.com.au/story/6736341/why-city-needs-to-be-put-on-a-road-diet/?cs=4464">calls</a> <a href="https://drive.google.com/file/d/1-dBhS2mhOX6y8aH6MWYfg1J483Bz8o8j/view">for</a> “<a href="https://www.spaceforhealth.org/">Space For Health</a>”. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/we-cant-let-coronavirus-kill-our-cities-heres-how-we-can-save-urban-life-137063">We can't let coronavirus kill our cities. Here's how we can save urban life</a>
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<p>We should “<a href="https://www.facebook.com/watch/live/?v=301290454378292&ref=watch_permalink">grow out of the COVID-19 recession</a>” by building back better through investment to sustain this increase in walking and cycling. Our call to action is therefore:</p>
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<img alt="A call to action for COVID-19 Walking and Cycling Infrastructure Investment" src="https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=849&fit=crop&dpr=1 600w, https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=849&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=849&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1067&fit=crop&dpr=1 754w, https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1067&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/347548/original/file-20200715-27-3i49wz.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1067&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="attribution"><span class="source">Matthew Mclaughlin</span></span>
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<p>While Australia’s cities have invested in walking and cycling during the COVID-19 pandemic, it’s less than some <a href="https://www.forbes.com/sites/carltonreid/2020/02/10/prime-minister-boris-johnson-pledges-5-billion-in-new-cash-for-buses-and-bicycle-infrastructure/#8b1ff706df6f">other</a> countries have invested. For example, Paris has accelerated the installation of <a href="https://www.forbes.com/sites/carltonreid/2020/04/22/paris-to-create-650-kilometers-of-pop-up-corona-cycleways-for-post-lockdown-travel/#13d8daa654d4">650km</a> of cycleways by removing <a href="https://www.forbes.com/sites/carltonreid/2020/04/22/paris-to-create-650-kilometers-of-pop-up-corona-cycleways-for-post-lockdown-travel/#13d8daa654d4">72% of its on-street parking</a>. Scotland is proposing to “<a href="https://www.livingstreets.org.uk/media/5413/walk-back-better-national-walking-strategy-delivery-forum-statement.pdf">Walk Back Better</a>” from COVID-19.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1255525752281468936"}"></div></p>
<p>It is good to see investment in Australian cities increasing. But now is the time to help kick-start our COVID-19 recovery by investing more in walking and cycling, and to reap the many benefits for the Australian community.</p><img src="https://counter.theconversation.com/content/142176/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Matthew Mclaughlin is affiliated with the International Society for Physical Activity and Health. He receives funding from the Priority Research Centre for Health Behaviour at the University of Newcastle and the Hunter Cancer Research Alliance. He is the Secretary of Newcastle Cycleways Movement. </span></em></p><p class="fine-print"><em><span>Trevor Shilton is Director of Active Living at the Heart Foundation of Australia. He is affiliated with the International Society for Physical Activity and Health, the International Union for Health Promotion and Education and the Australasian Society for Physical Activity</span></em></p>Investing more in cycling and walking would boost both physical and economic health, with a typical return of $5 for every $1 spent on cycling infrastructure.Matthew Mclaughlin, PhD Candidate, School of Medicine and Public Health, University of NewcastleTrevor Shilton, Adjunct Professor, School of Public Health, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1430112020-07-21T04:18:49Z2020-07-21T04:18:49ZBowing out gracefully: how they’ll wind down JobKeeper<p>The government’s revised JobKeeper scheme, announced today <a href="https://treasury.gov.au/sites/default/files/2020-07/jobkeeper-review-2020.pdf">following a treasury review</a>, fixes many of the flaws of the original design, providing support for businesses continuing to struggle as the economy recovers and for those thrust into renewed uncertainty amid isolated outbreaks and second waves.</p>
<p>Importantly, both <a href="https://treasury.gov.au/coronavirus/jobkeeper">JobKeeper</a> (the A$1,500 per fortnight payment to hard-hit businesses for each worker they keep on the job) and the <a href="https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-Income_Support_for_Individuals.pdf">coronavirus supplement</a> (the $500 per fortnight top-up to the JobSeeker unemployment benefit and a range of other payments) will continue as they are until they were due to expire in September, suggesting the government has decided the economy wasn’t strong enough for an early withdrawal.</p>
<p>Beyond that, they will continue at lower rates, for JobKeeper until the end of March, and for the coronavirus supplement until the end of the year.</p>
<p>The extended JobKeeper will be more modest, better targeted, and better in tune with the needs of the businesses receiving it. But it remains to be seen if even this withdrawal of fiscal stimulus will be too rapid for what looks to be a fragile economic recovery.</p>
<h2>Rolling eligibility</h2>
<p>The big change to JobKeeper will be a move to rolling eligibility. The original scheme was a one-shot game. You applied, indicated that you expected to lose 30% of your revenue (50% for big businesses) and got JobKeeper for the full six months. </p>
<p>Given many of the businesses that qualified (and over one half of all businesses covering about one third of all workers did) will have been impacted only mildly or for only a short time, many will have in fact profited handsomely from the design as it was.</p>
<p>To prevent this profiteering, the scheme should always have retested eligibility every month or quarter. As it is, all businesses report their actual and expected revenues to the Tax Office every month, but this doesn’t affect their payment.</p>
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Read more:
<a href="https://theconversation.com/quick-dirty-effective-there-was-no-time-to-make-jobkeeper-perfect-135195">Quick, dirty, effective: there was no time to make JobKeeper perfect</a>
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<p>From the end of September, organisations seeking JobKeeper will be required to reassess their eligibility with reference to their actual turnover in the June and September quarters of 2020. If they had a big enough decline, they will get to keep JobKeeper for the rest of the year. </p>
<p>If they want it beyond this year until the end of March 2021, they will need to reassess their eligibility based on their actual turnover in the previous three quarters.</p>
<h2>Continuing into 2021</h2>
<p>The original scheme was cobbled together in late March before the first wave of coronavirus had peaked, and before we knew how long it would last or what damage it would wreak. For much of the country, the fallout was more modest and shorter-lived than had been expected. </p>
<p>But the full-blown Victorian second wave and the ember attacks in New South Wales highlight the precarious nature of the recovery. </p>
<p>And with the virus still raging across much of the world, international borders may remain closed until mid-2021, which will devastate sectors of the economy such as tourism and education.</p>
<p>Moreover, withdrawing all the fiscal support at once — the so-called “<a href="https://theconversation.com/whatll-happen-when-the-moneys-snatched-back-our-looming-coronavirus-support-cliff-138527">fiscal cliff</a>” — might have put our fledgling recovery at serious risk. </p>
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Read more:
<a href="https://theconversation.com/whatll-happen-when-the-moneys-snatched-back-our-looming-coronavirus-support-cliff-138527">What'll happen when the money's snatched back? Our looming coronavirus support cliff</a>
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<p>Extending JobKeeper by another six months but at a more modest level) and with tighter targeting is prudent and pragmatic, and far better than driving off the fiscal cliff.</p>
<p>As businesses recover, they will organically drop out of the scheme, keeping support flowing to those worst-affected into 2021.</p>
<p>But this still represents a large withdrawal of stimulus from the economy, reducing the incomes of many workers at a time of great fragility. </p>
<p>The government should seriously consider introducing alternative support measures, like broad business tax relief and cash stimulus, to further support the recovery.</p>
<h2>Two speeds</h2>
<p>The original flat payment structure – paying eligible businesses $1,500 per fortnight for every worker, regardless of each workers’ earnings or work hours – was always a baffling design choice.</p>
<p>It meant that a quarter of the workers covered got more money than they had been earning before. Unrelated to hours worked, the $1,500 per fortnight payment made it hard to entice casual workers to work more hours.</p>
<p>The updated two-tier structure along the lines of New Zealand’s will offer $1,200 per fortnight for all eligible employees who were previously working 20 hours or more per week, and $750 per fortnight for employees who were previously working less than 20 hours a week.</p>
<p>After January 4, those payments will shrink to $1,000 per fortnight and $650 per fortnight.</p>
<h2>Remaining flaws, but no dealbreakers</h2>
<p>There is no doubt JobKeeper has propped up some businesses that were not viable even before the recession. When it comes, this “creative destruction” will be one of the few silver linings of the recession, something Australia has missed out on for three decades.</p>
<p>The lower payment rates will reduce but not eliminate support for zombie firms. This adds to the case for not extending the scheme beyond its new March end date, so long as by then viable businesses can stand on their own feet.</p>
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Read more:
<a href="https://theconversation.com/jobseeker-supplement-cut-from-550-to-250-a-fortnight-after-september-143086">JobSeeker supplement cut from $550 to $250 a fortnight after September</a>
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<p>An oddity is that after the changes the payments to people on the JobSeeker (Newstart) and other payments including Youth Allowance, Farm Household Allowance, Parenting Payment and Special Benefit will be higher than those under JobKeeper to people working up to 20 hours per week. </p>
<p>JobSeeker with the coronavirus supplement will fall from $1,100 to $815.50 a fortnight, while the JobKeeper payment for people working fewer than 20 hours a week will fall from $1,500 to $750.</p>
<p>On the face of it, it means that until December someone working up to 20 hours per week will get less money ($750 per fortnight) than someone out of a job and working zero hours ($815.50).</p>
<p>But the person on JobKeeper might be able to get extra support. </p>
<p>Government sources suggest that in some circumstances people can get both the lower JobKeeper and some JobSeeker, guidance that sits alongside the bald statement on the Services Australia website that “<a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment/who-can-get-it/getting-jobkeeper-payment">most people can’t get both</a>”.</p>
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Read more:
<a href="https://theconversation.com/the-compromise-that-might-just-boost-the-jobseeker-unemployment-benefit-142321">The compromise that might just boost the JobSeeker unemployment benefit</a>
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<p>The apparent disparity mightn’t last for long. Come Christmas, JobSeeker is set to be busted back to somewhere in the region of its present $565.70 as the coronavirus supplement ends.</p>
<p>In his press conference, Prime Minister Scott Morrison held out hope of a permanent increase beyond then but offered no details. It was not a question the government was contemplating “at this point”.</p><img src="https://counter.theconversation.com/content/143011/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Hamilton does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The new slimmed-down and tapered JobKeeper is an improvement, but it’ll interact with JobSeeker in odd ways.Steven Hamilton, Visiting Fellow, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1418732020-07-02T02:48:47Z2020-07-02T02:48:47ZPolitics with Michelle Grattan: two leading economists on Australia’s post-COVID economy<p>With three months before JobSeeker is due to end and calls for <a href="https://theconversation.com/cutting-unemployment-will-require-an-extra-70-to-90-billion-in-stimulus-heres-why-141376">billions of dollars in extra spending</a>, there is a growing debate about how Australia’s post-coronavirus economy will actually look.</p>
<p>While Scott Morrison has said Australia will need to lift economic growth by “more than one percentage point above trend” through to 2025, a <a href="https://theconversation.com/no-big-bounce-2020-21-economic-survey-points-to-a-weak-recovery-getting-weaker-amid-declining-living-standards-141184">22-economist panel </a> hosted by The Conversation forecast a bleaker result. </p>
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Read more:
<a href="https://theconversation.com/no-big-bounce-2020-21-economic-survey-points-to-a-weak-recovery-getting-weaker-amid-declining-living-standards-141184">No big bounce: 2020-21 economic survey points to a weak recovery getting weaker, amid declining living standards</a>
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<p>Growth one percentage point above trend would average almost 4% per year.</p>
<p>The Conversation’s economic panel forecast an annual growth averaging 2.4% over the next four years, much less than the long-term trend.</p>
<p>In this podcast, Michelle Grattan discusses the economic pathway ahead with two economists featured on the panel: Professor of Economics at the UNSW Business School Richard Holden, and Professor of Economics and Public Policy at the Australian National University Warwick McKibbin.</p>
<p>McKibbin argues for a major change to the national cabinet. “I think it would be very useful if the leader of the opposition was on that cabinet, and perhaps even a couple of the key ministerial portfolios from the opposition side, so that you truly have… both sides of the political spectrum represented.”</p>
<p>Making the body more inclusive, McKibbin says, would assist a bipartisan approach. “If you are going to go for the big bipartisan approach, which I think is fundamental to most of the problems we face, you have to do something like the national cabinet,” he said.</p>
<p>“It worked very effectively during the worst parts of the virus, it is breaking down now it appears, because Australians seem to think things are okay now. But I think you’ll see it re-emerge very shortly.”</p>
<p>Richard Holden warns an increase in taxation should not be contemplated to pay for some of the large spend the COVID crisis is requiring. </p>
<p>“I don’t think there will be an increase in taxation under this government, and I definitely don’t think there should be under any government,” he says. </p>
<p>“The coalition has made the debt and deficits mantra part of their political brand, and I understand that from a political perspective. And there’s nothing wrong with aspiring to balancing the budget over the economic cycle.”</p>
<p>“But when you’re in one of the largest economic crises in a hundred years, it is not the time to be penny-pinching and focusing on economic management credentials as measured by the budget bottom line in the short term.”</p>
<p><a href="https://itunes.apple.com/au/podcast/politics-with-michelle-grattan/id703425900?mt=2"><img src="https://images.theconversation.com/files/233721/original/file-20180827-75984-1gfuvlr.png" alt="Listen on Apple Podcasts" width="268" height="68"></a> <a href="https://www.google.com/podcasts?feed=aHR0cHM6Ly90aGVjb252ZXJzYXRpb24uY29tL2F1L3BvZGNhc3RzL3BvbGl0aWNzLXdpdGgtbWljaGVsbGUtZ3JhdHRhbi5yc3M"><img src="https://images.theconversation.com/files/233720/original/file-20180827-75978-3mdxcf.png" alt="" width="268" height="68"></a></p>
<p><a href="https://www.stitcher.com/podcast/the-conversation-4/politics-with-michelle-grattan"><img src="https://images.theconversation.com/files/233716/original/file-20180827-75981-pdp50i.png" alt="Stitcher" width="300" height="88"></a> <a href="https://tunein.com/podcasts/News--Politics-Podcasts/Politics-with-Michelle-Grattan-p227852/"><img src="https://images.theconversation.com/files/233723/original/file-20180827-75984-f0y2gb.png" alt="Listen on TuneIn" width="318" height="125"></a></p>
<p><a href="https://radiopublic.com/politics-with-michelle-grattan-WRElBZ"><img class="alignnone size-medium wp-image-152" src="https://images.theconversation.com/files/233717/original/file-20180827-75990-86y5tg.png?ixlib=rb-1.1.0&q=45&auto=format&w=268&fit=clip" alt="Listen on RadioPublic" width="268" height="87"></a> <a href="https://open.spotify.com/show/5NkaSQoUERalaLBQAqUOcC"><img src="https://images.theconversation.com/files/237984/original/file-20180925-149976-1ks72uy.png?ixlib=rb-1.1.0&q=45&auto=format&w=268&fit=clip" width="268" height="82"></a> </p>
<h2>Additional audio</h2>
<p><a href="http://freemusicarchive.org/music/Lee_Rosevere/The_Big_Loop_-_FML_original_podcast_score/Lee_Rosevere_-_The_Big_Loop_-_FML_original_podcast_score_-_10_A_List_of_Ways_to_Die">A List of Ways to Die</a>, Lee Rosevere, from Free Music Archive.</p><img src="https://counter.theconversation.com/content/141873/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Michelle Grattan discusses the economic future of Australia post-COVID with economists Richard Holden and Warwick McKibbinMichelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1407322020-06-16T20:03:17Z2020-06-16T20:03:17ZMr Morrison, you can cut ‘green tape’ without harming nature – but it’ll take money and gumption<figure><img src="https://images.theconversation.com/files/342030/original/file-20200616-23255-1utt3ev.jpg?ixlib=rb-1.1.0&rect=41%2C0%2C5509%2C3700&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Lukas Coch/AAP</span></span></figcaption></figure><p>Prime Minister Scott Morrison <a href="https://www.pm.gov.au/media/address-%E2%80%93-ceda%E2%80%99s-state-nation-conference">this week announced</a> environmental approvals for 15 major infrastructure projects will be fast-tracked to accelerate investment as Australia emerges from the COVID-19 lockdown.</p>
<p>Under the current system, proponents must seek both state and federal approvals for big developments. The new “single touch” approvals process will involve teams of state and federal officials assessing the projects jointly. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/view-from-the-hill-can-do-scott-morrison-needs-to-take-care-in-deregulating-140743">View from The Hill: 'Can do' Scott Morrison needs to take care in deregulating</a>
</strong>
</em>
</p>
<hr>
<p>This is by no means the first attempt by governments to streamline environmental approvals. Morrison says the latest push will be informed by a <a href="https://epbcactreview.environment.gov.au">ten-year review</a> of the Environmental Protection and Biodiversity (EPBC) Act, which has also been framed around cutting so-called “green tape” that slows developments. An interim report is due this month.</p>
<p>I was a federal environment official for 13 years, and from 2007 to 2012 was responsible for administering and reforming the Act. There are ways the laws can be streamlined without sacrificing the environment. But isolated from more comprehensive environmental reform, faster approval will bring significant environmental risk.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/342032/original/file-20200616-23227-gerghk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Faster environemnt approvals brings environmental risk.</span>
<span class="attribution"><span class="source">WWF Australia</span></span>
</figcaption>
</figure>
<h2>We’ve been here before</h2>
<p>The first national agreement to streamline environmental approvals dates back to 1990, and Bob Hawke’s <a href="http://www.austlii.edu.au/au/journals/GriffLawRw/1994/6.pdf">“New Federalism” push</a> to <a href="https://www.jstor.org/stable/3330258?seq=1">reduce overlap</a> between Commonwealth and state environmental laws.</p>
<p>More recently, the Gillard government in 2012, at the urging of <a href="https://www.coag.gov.au/meeting-outcomes/coag-meeting-communique-13-april-2012">business interests</a>, sought to strike bilateral agreements with the states to reduce duplication in environmental approvals. The push was abandoned when each state <a href="https://pmtranscripts.pmc.gov.au/release/transcript-18959">demanded different arrangements</a>, making the proposed system too messy and complex.</p>
<p>In 2014 the Abbott government revived this “one-stop shop” approach, but the move was <a href="https://www.theguardian.com/environment/2014/sep/02/palmer-united-party-to-block-one-stop-shop-environmental-approvals">blocked by the Senate</a>.</p>
<h2>A risky business</h2>
<p>Environment advocates naturally oppose moves to <a href="https://theconversation.com/our-nature-laws-are-being-overhauled-here-are-7-things-we-must-fix-126021">streamline environmental laws</a> and <a href="https://theconversation.com/explainer-one-stop-shop-for-environmental-approvals-19515">approval processes</a>. They argue the regime already fails to protect threatened species and biodiversity, and the bar should not be lowered further.</p>
<p>It’s true that while governments may claim faster approvals won’t erode environmental standards, there aren’t many hard-and-fast standards to maintain.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/342038/original/file-20200616-23276-pf178p.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Environmentalists argue current laws are already inadequate.</span>
<span class="attribution"><span class="source">Larine Statham/AAP</span></span>
</figcaption>
</figure>
<p>Instead, EPBC Act decisions mostly hinge on the minister’s conclusion that assessed environmental impacts are “not unacceptable”, provided certain conditions, such as minimising a project’s physical size, are met. But this is no standard at all, because such decisions are arbitrary and no “bottom line” for a project’s environmental performance is set.</p>
<p>As things stand, the closest thing to an on-ground environmental standard is the <a href="https://www.environment.gov.au/epbc/publications/epbc-act-environmental-offsets-policy">environmental offsets policy</a>, which allows environmental damage from a project to be compensated for by environmental improvements elsewhere. But policies are not binding, there is no public register of approved offsets and little evidence of them being monitored and enforced.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/be-worried-when-fossil-fuel-lobbyists-support-current-environmental-laws-138526">Be worried when fossil fuel lobbyists support current environmental laws</a>
</strong>
</em>
</p>
<hr>
<p>The Act does include mechanisms for setting standards. These include “bioregional plans” intended to inform industry and decision-makers of the environmental values and objectives of a region, and how these should be met.</p>
<p>But since the Act commenced in 2000, just <a href="https://www.environment.gov.au/marine/marine-bioregional-plans">five such plans</a> for marine areas have been developed, and none have been prepared for regions on land.</p>
<p>The Act also provides for recovery plans setting out the actions necessary to support listed threatened species. But as of 2018, <a href="https://www.theguardian.com/environment/2018/feb/20/fantasy-documents-recovery-plans-failing-australias-endangered-species">fewer than half</a> these species have recovery plans, and where they exist, the plans are often out of date and not specific enough.</p>
<h2>Efficient approvals require proper resources</h2>
<p>Morrison said his government wants to reduce Commonwealth assessment and approval times for major projects, from an average of 3.5 years to 21 months.
But to do that, his government must stop starving its own regulatory systems of resources.</p>
<p>Between 2013 and 2019, the federal environment department’s budget was cut by 39.7%, according to an assessment by the <a href="https://www.acf.org.au/budget_2019_20_devaluing_our_environment_fuelling_global_warming">Australian Conservtaion Foundation</a>. So it’s little wonder approval processes slowed. </p>
<p>In November last year <a href="https://minister.awe.gov.au/ley/media-releases/congestion-busting-environmental-assessments">the Morrison government announced</a> A$25 million to reduce unnecessary delays in environmental assessments, including the establishment of a major projects team. In effect, this was merely a reversal of previous funding cuts by this government and some of its predecessors.</p>
<p>What’s more, an efficient approvals process needs good information, yet this can be hard to come by. </p>
<p>The much-needed <a href="http://www.bom.gov.au/environment/NPEI_info_sheet.pdf">National Plan for Environmental Information</a> was established in 2010 “to improve the quality and accessibility of Australian environmental information”. It would have reduced the need for fieldwork in environmental assessments. But in my view it was never properly resourced, and it has since been abolished.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/342042/original/file-20200616-23276-tps65b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">An expansion of BHP’s Olympic Dam mine site in Roxby Downs, South Australia, is among the priority infrastructure projects.</span>
<span class="attribution"><span class="source">David Mariuz/AAP</span></span>
</figcaption>
</figure>
<h2>But streamlining <em>could</em> work</h2>
<p>There are ways the Commonwealth and states could cut environmental approval times without cutting corners. </p>
<p>The proposed joint assessment teams would have to be well-resourced. They would also have to be authorised to negotiate procedural or cultural obstacles to meeting both federal and state legal requirements.</p>
<p>When I was in the environment department, it was common for federal and state officials to complain their counterparts were not addressing the assessment and approval requirements of the other jurisdiction. </p>
<p>And if companies behind developments want faster approvals, they will have to provide information to officials in a timely fashion – something that doesn’t always happen now.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/environment-laws-have-failed-to-tackle-the-extinction-emergency-heres-the-proof-122936">Environment laws have failed to tackle the extinction emergency. Here's the proof</a>
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</em>
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<hr>
<p>Australia has learnt much during the pandemic – not only about cooperation between the Commonwealth and the states, but also between government and business. Success in this latest streamlining attempt will demand excellence in both.</p>
<p>The larger challenge is to speed up the process without lowering the environmental bar. </p>
<p>The federal government should commission independent monitoring and evaluation of the environmental outcomes of approvals under these new arrangements. In 2009 a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/Completed_inquiries/2008-10/epbcact/report/index">Senate committee recommended</a>more resources for monitoring and audits, but nothing has improved in the decade since.</p>
<p>Independent evaluation won’t win over the sceptics, but it might assuage their worst fears.</p><img src="https://counter.theconversation.com/content/140732/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Burnett is a former senior federal official who was responsible for administering the EPBC Act.</span></em></p>I was a federal environment official for 13 years. Streamlining approvals for big infrastructure projects is a big environmental risk, unless it’s done properly.Peter Burnett, Honorary Associate Professor, ANU College of Law, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1400672020-06-05T01:38:17Z2020-06-05T01:38:17ZHomeBuilder misses a chance to make our homes perform better for us and the planet<figure><img src="https://images.theconversation.com/files/339947/original/file-20200605-67372-ekn3pp.jpg?ixlib=rb-1.1.0&rect=94%2C103%2C2762%2C1590&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Lochiel Park in South Australia has demonstrated the benefits of building homes to a higher standard – a minimum 7.5-star rating in this case. </span> <span class="attribution"><span class="source">Stephen Berry/UniSA</span></span></figcaption></figure><p>The federal government’s new A$688 million <a href="https://treasury.gov.au/coronavirus/homebuilder">HomeBuilder package</a> <a href="https://theconversation.com/scott-morrisons-homebuilder-scheme-is-classic-retail-politics-but-lousy-economics-140076">might protect residential construction jobs</a> but it’s a missed opportunity to deliver sustainability benefits that would save owners money in the long run. The A$25,000 grant for new homes and renovations could have been better leveraged to provide <a href="https://www.domain.com.au/news/homebuilder-retirees-and-shovel-ready-projects-to-reap-benefits-of-cash-splash-960623/">broader</a> and ongoing benefits. In particular, it could have been used to ensure homes are more <a href="https://theconversation.com/sustainable-housings-expensive-right-not-when-you-look-at-the-whole-equation-60056">energy-efficient and cheaper to run</a>.</p>
<p>The grant is available for building an owner-occupied home with property values (house and land) under $750,000. Renovations costing between $150,000 and $750,000 for a property valued under $1.5 million are also eligible. Grants are means-tested against household incomes.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/homebuilder-might-be-the-most-complex-least-equitable-construction-jobs-program-ever-devised-140162">HomeBuilder might be the most-complex least-equitable construction jobs program ever devised</a>
</strong>
</em>
</p>
<hr>
<h2>Building new houses better</h2>
<p>The scheme could have required new houses to exceed <a href="https://www.nathers.gov.au/owners-and-builders/home-energy-star-ratings">minimum building code requirements</a> to be eligible. The development industry would then have had to deliver housing to this standard or risk losing potential buyers. Using the right design and materials would mean any extra costs are <a href="https://www.domain.com.au/news/the-cape-ecodevelopment-should-be-the-national-standard-for-a-zero-carbon-climate-resilient-future-experts-say-922298/">recouped over time</a>.</p>
<p>Heating and cooling energy use could be reduced by <a href="https://www.nathers.gov.au/sites/default/files/2019-10/NatHERS%20Star%20bands.pdf">almost 25%</a> across capital city climate zones <a href="https://www.nathers.gov.au/sites/default/files/Research%2520Rep%2520-%2520Cost%2520Savings%2520Through%2520Bld%2520Redesign%2520Pt%25202.pdf">with minimal requirements</a>. New houses could achieve these reductions with a solar PV system and 7-star performance rating (in line with <a href="https://consultation.abcb.gov.au/engagement/energy-efficiency-scoping-study-2019/user_uploads/scoping-study-energy-efficiency-ncc-2022-and-beyond.pdf">proposed changes</a> to raise the National Construction Code’s current 6-star minimum in 2022). This would reduce <a href="https://www.domain.com.au/news/the-cape-ecodevelopment-should-be-the-national-standard-for-a-zero-carbon-climate-resilient-future-experts-say-922298/">utility bills and carbon footprints</a> for householders.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/scott-morrisons-homebuilder-scheme-is-classic-retail-politics-but-lousy-economics-140076">Scott Morrison’s HomeBuilder scheme is classic retail politics but lousy economics</a>
</strong>
</em>
</p>
<hr>
<p>The use of majority Australian-made materials could be stipulated. Local renewable energy, insulation and energy-efficiency businesses would benefit from increased demand. Job creation would follow in these and secondary industries.</p>
<p>The $25,000 grant cost to government would more than <a href="https://www.unisa.edu.au/siteassets/episerver-6-files/global/itee/bhi/lochiel-park/berrydavidson_valueproposition-governmentexperience3.pdf">cover the costs of these requirements</a>. Various <a href="https://www.nathers.gov.au/sites/default/files/Research%2520Rep%2520-%2520Cost%2520Savings%2520Through%2520Bld%2520Redesign%2520Pt%25202.pdf">Australian studies</a> have found achieving a 7-star rating involves little if any extra cost for new houses in many locations. The cost of solar PV <a href="https://www.energycouncil.com.au/media/17320/australian-energy-council-solar-report-september-2019.pdf">continues to fall</a>.</p>
<p>Combining these sustainability measures through HomeBuilder would provide benefits across the lifetime of new houses. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=291&fit=crop&dpr=1 600w, https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=291&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=291&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=366&fit=crop&dpr=1 754w, https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=366&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/339962/original/file-20200605-67372-p64an.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=366&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Cape is a Victorian development where all houses have a minimum 7.5-star performance rating. The first ones built have running costs of 15% of the state average for homes of the same size.</span>
<span class="attribution"><span class="source">Trivess Moore</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/sustainable-housings-expensive-right-not-when-you-look-at-the-whole-equation-60056">Sustainable housing's expensive, right? Not when you look at the whole equation</a>
</strong>
</em>
</p>
<hr>
<h2>Renovation to benefit everyone</h2>
<p>Restricting HomeBuilder grants to renovation projects over $150,000 excludes many modest renovations like upgrading a kitchen or bathroom. It has already been called a <a href="https://www.news.com.au/finance/economy/australian-economy/homebuyers-grant-scott-morrisons-homebuilder-scheme-panned/news-story/398dd7f3b6a61a6ded7837812d5c248d">handout for the rich</a>. </p>
<p>Much of the existing housing stock in Australia has <a href="https://www.sustainability.vic.gov.au/About-us/Research/Household-retrofit-trials">poor energy and thermal performance</a>. Many houses are <a href="https://theconversation.com/out-in-the-heat-why-poorer-suburbs-are-more-at-risk-in-warming-cities-66213">too hot</a> in summer or <a href="https://theconversation.com/stimulus-that-retrofits-housing-can-reduce-energy-bills-and-inequity-too-138606">too cold</a> in winter, or both. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/when-the-heat-hits-how-to-make-our-homes-comfortable-without-cranking-up-the-aircon-110496">When the heat hits: how to make our homes comfortable without cranking up the aircon</a>
</strong>
</em>
</p>
<hr>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=526&fit=crop&dpr=1 600w, https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=526&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=526&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=661&fit=crop&dpr=1 754w, https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=661&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/339960/original/file-20200605-67347-1b9qmw1.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=661&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Installing a heat pump hot water system is one way to cut household costs and emissions.</span>
<span class="attribution"><span class="source">Trivess Moore</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>A better and more equitable strategy would be to provide renovation grants for energy-efficiency retrofits in owner-occupied and rental housing.</p>
<p>Retrofits could be undertaken for a fraction of the price of the renovation grant and still help a range of trades. There would be demand for heating and cooling systems, insulation and draught proofing to be supplied and installed. Households would save on bills and suffer less from extreme temperatures.</p>
<p>Energy-efficiency retrofits are a cost-effective way to improve environmental performance, thermal comfort, health and well-being. Much of Australia’s existing housing stock could be <a href="https://www.sustainability.vic.gov.au/About-us/Research/Household-retrofit-trials">upgraded to 5 stars</a> for much less than the budgets required by the announced stimulus.</p>
<p>Retrofits should be determined by an in-house sustainability assessment by qualified assessors - another potential growth area. Programs like the <a href="https://www.victorianenergysaver.vic.gov.au/save-energy-and-money/get-a-home-energy-assessment">Victorian Residential Energy Scorecard</a> already offer guidance on best practice. Identifying the best retrofitting opportunities for individual properties would ensure each household gets best value for money. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/stimulus-that-retrofits-housing-can-reduce-energy-bills-and-inequity-too-138606">Stimulus that retrofits housing can reduce energy bills and inequity too</a>
</strong>
</em>
</p>
<hr>
<h2>Capturing wider benefits</h2>
<p>A more strategic approach to HomeBuilder could help the economy and move us towards a lower-carbon future. </p>
<p>The need to upskill tradies and limitations of local manufacturing are often cited as barriers to improving the sustainability of Australian housing. HomeBuilder could offer incentives to overcome these obstacles. Setting higher building performance standards as a condition of the HomeBuilder grant would upskill workers and create jobs.</p>
<p>Tradies would have the opportunity to work on tens of thousands of houses with higher performance ratings. This would provide extensive professional experience of building more sustainable housing across the country. Local manufacturing and secondary industries could innovate and supply sustainable building materials and technologies for Australian conditions. </p>
<p>Improving housing sustainability would also help achieve broader federal and state government policy goals. For a start, it would help Australia achieve targets for reducing greenhouse gas emissions. It would also help with issues such as energy vulnerability and security.</p>
<p>As a final note, <a href="https://theconversation.com/money-for-social-housing-not-home-buyers-grants-is-the-key-to-construction-stimulus-139743">economists</a>, <a href="https://theconversation.com/coronavirus-lays-bare-5-big-housing-system-flaws-to-be-fixed-137162">housing researchers</a> and <a href="https://theconversation.com/the-need-to-house-everyone-has-never-been-clearer-heres-a-2-step-strategy-to-get-it-done-137069">social housing organisations</a> argue that a program designed to deliver more social housing would provide greater benefits. Australia certainly needs to increase its social housing stock. HomeBuilder could have helped with this. </p>
<p>If future stimulus schemes target social housing, we suggest environmental and energy performance should be top priorities from the outset.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/140067/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Trivess Moore has received funding from various organisations including the Australian Research Council, Australian Housing and Urban Research Institute, Victorian Government and various industry partners. He is a trustee of the Fuel Poverty Research Network.</span></em></p><p class="fine-print"><em><span>Tony Matthews has received funding from the Australian Research Council and the CSIRO. He is affiliated with the Royal Town Planning Institute and the Planning Institute of Australia. He is an Ambassador for Planet Ark and a spokesperson for Greener Spaces, Better Places (formerly 202020 Vision).</span></em></p>There has never been a better time for public money to go into improving the performance of Australian housing. We could have cut household bills and emissions, as well as saving construction jobs.Trivess Moore, Senior Lecturer, School of Property, Construction and Project Management, RMIT UniversityTony Matthews, Senior Lecturer in Urban and Environmental Planning, Griffith UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1385472020-06-04T05:01:51Z2020-06-04T05:01:51ZLessons from history point to local councils’ role in Australia’s recovery<figure><img src="https://images.theconversation.com/files/338152/original/file-20200528-143715-g9xrdk.png?ixlib=rb-1.1.0&rect=125%2C2%2C1262%2C771&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Johnstone Shire Hall was the birthplace of an ambitious partnership between 11 local governments in 1944. Together, they led a regional post-war reconstruction agenda in North Queensland.
</span> <span class="attribution"><a class="source" href="https://digital.slq.qld.gov.au/delivery/DeliveryManagerServlet?change_lng=en&dps_pid=IE50665">State Library of Queensland</a></span></figcaption></figure><p>Australia’s local governments breathed new life into embattled regional communities after the second world war. Today, this history reminds us of the role local councils and communities should play in plans to power the national recovery from the COVID-19 shutdown.</p>
<p>Australia’s experience of this pandemic has opened a door to the past. The <a href="https://www.jcu.edu.au/this-is-uni/articles/the-forgotten-heroes-of-the-spanish-flu">Spanish flu pandemic</a> led to emergency powers, border closures and authority contests between state and federal governments. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-australias-response-to-the-spanish-flu-of-1919-sounds-warnings-on-dealing-with-coronavirus-134017">How Australia's response to the Spanish flu of 1919 sounds warnings on dealing with coronavirus</a>
</strong>
</em>
</p>
<hr>
<p>Now, as Australia reopens the economy, it is time to consider lessons from post-war reconstruction. It was one of the nation’s <a href="http://honesthistory.net.au/wp/review-note-stuart-macintyres-australias-boldest-experiment/">greatest achievements</a>. Post-war reconstruction reshaped the economy and set a national agenda for the following decades. </p>
<p>But, in the broad memory of the period, local initiatives are often overlooked. Responses in North Queensland, for instance, proved reconstruction was not the exclusive preserve of state and federal governments.</p>
<p>The social and economic impacts of the war had devastated North Queensland’s isolated communities. They faced an uncertain future. Without robust connections to national authorities, the people of North Queensland were at risk of being left behind by <a href="https://www.jstor.org/stable/pdf/j.ctt16wd0fd.8.pdf">centrally planned reconstruction programs</a>. </p>
<p>In response, the region’s local governments mobilised their collective resources. They led a huge recovery program, which transformed North Queensland. The efforts of councils and their communities helped stimulate a period of record <a href="https://www.jcu.edu.au/this-is-uni/articles/northern-dreams">northern development</a>.</p>
<h2>Planning began early</h2>
<p>Post-war planning began long before hostilities ended. Under pressure from the federal Labor opposition, Prime Minister Robert Menzies had established a small Reconstruction Division in 1940. A <a href="https://trove.nla.gov.au/work/8480628?q=robert+menzies+forgotten+people%2C+2007&c=book&sort=holdings+desc&_=1589619891302&versionId=263087168">political crisis</a> consumed the leadership of both Menzies and his deputy, <a href="https://research-repository.griffith.edu.au/handle/10072/366904">Arthur Fadden</a>, and Labor’s John Curtin became prime minister in 1941.</p>
<p>Preoccupied with the war effort, Curtin at first overlooked reconstruction. Internal party pressure soon stimulated a national agenda and the creation of the Department of Post-War Reconstruction. It began work in 1942 with <a href="http://adb.anu.edu.au/biography/chifley-joseph-benedict-ben-9738">Ben Chifley</a> as minister. </p>
<p><a href="http://oa.anu.edu.au/obituary/coombs-herbert-cole-nugget-246">Herbert “Nugget” Coombs</a> was one of the architects of reconstruction. He <a href="https://trove.nla.gov.au/work/5995168?q=%27The+Economic+Aftermath+of+the+War%27%2C&c=book&versionId=6949685">reckoned</a> the war had provided the nation with an:</p>
<blockquote>
<p>opportunity to move consciously and intelligently towards a new economic and social system.</p>
</blockquote>
<p>COVID-19 provides similar <a href="https://theconversation.com/australias-post-war-recovery-program-provides-clues-as-to-how-to-get-out-of-this-135324">opportunities</a> for a centrally planned reboot of the <a href="https://theconversation.com/we-need-to-plan-for-life-after-jobkeeper-now-we-need-to-make-it-portable-138416">national economy</a>. Perhaps, as with the post-war reconstruction of North Queensland, local innovation could then drive this recovery.</p>
<h2>Regional alliance set agenda</h2>
<p>From 1942, preparations for the war in the Pacific transformed North Queensland. Huge numbers of Allied troops descended on the region. This led to shortages of food, jobs and housing. </p>
<p>Being close to the conflict zones in New Guinea and the Coral Sea intensified fears of invasion. Local residents were frustrated by a lack of attention from distant state and federal governments.</p>
<p>In 1943, one <a href="https://trove.nla.gov.au/newspaper/article/212234915?searchTerm=%22Northern%20Local%20Authorities%20Confer%20at%20Ingham%22&searchLimits=exactPhrase=Northern+Local+Authorities+Confer+at+Ingham%7C%7C%7CanyWords%7C%7C%7CnotWords%7C%7C%7CrequestHandler%7C%7C%7CdateFrom=1943-01-01%7C%7C%7CdateTo=1943-12-31%7C%7C%7Cl-advstate=Queensland%7C%7C%7Csortby">local council chairman said</a>:</p>
<blockquote>
<p>Councils should be given a greater share in the responsibility of good government of the people in their areas. The tendency [in Australia] is to govern from capital cities, and no matter how sympathetic the Governments may be it often results in control by persons not fully acquainted with local needs.</p>
</blockquote>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=432&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=432&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=432&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=543&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=543&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336041/original/file-20200519-152311-1nby3rd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=543&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">North Queensland’s local councils devised and oversaw Northern Reconstruction. With quarterly meetings held across the region, councillors became familiar with the landscape and challenges of the entire region.</span>
<span class="attribution"><a class="source" href="https://digital.slq.qld.gov.au/delivery/DeliveryManagerServlet?change_lng=en&dps_pid=IE386406">State Library of Queensland</a></span>
</figcaption>
</figure>
<p>Local governments seized the initiative. Across a territory similar in size to the area from Sydney to the Gold Coast and west to Tamworth, North Queensland councils formed an ambitious alliance. They created the North Queensland Local Government Association in 1944. </p>
<p>The association aimed to overcome political and parochial rivalries. It formed bipartisan committees that examined regional priorities and developed a <a href="https://trove.nla.gov.au/newspaper/article/212427610?searchTerm=Northern%20Local%20Authorities%20and%20Post%20War%20Problems&searchLimits=">“Northern Reconstruction”</a> agenda.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=585&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=585&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=585&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=735&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=735&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336256/original/file-20200520-152284-faf990.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=735&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Records of the Northern Reconstruction agenda reveal an extensive and influential campaign, which lasted until at least the 1960s.</span>
<span class="attribution"><span class="source">Special Collections, Eddie Koiki Mabo Library, James Cook University, Author provided</span></span>
</figcaption>
</figure>
<p>The projects the association sponsored resonate with the present challenges flowing from COVID-19. Increased civic engagement helped to deliver transport projects and industrial development. Local governments formed <a href="http://libserver.jcu.edu.au/specials/Archives/people.html">partnerships</a> with power companies, port authorities and chambers of commerce. </p>
<p>Local governments fostered better connections across the region and with the rest of Australia. The association became a conduit for the flow of local knowledge to state and federal authorities. This helped focus crucial national resources on <a href="http://www.environmentandsociety.org/arcadia/competing-influences-deluge-and-drought-queenslands-dry-tropics-0?fbclid=IwAR1gL4BSHc-wAaDvO80eiwz_O-QAxWlKyjxE6by_Uvcccfp0LhSF82FRGr4">regional problems</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=439&fit=crop&dpr=1 600w, https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=439&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=439&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=551&fit=crop&dpr=1 754w, https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=551&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/335579/original/file-20200517-138639-1ihzgfe.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=551&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Burdekin Bridge is an essential link between North Queensland and the rest of the nation. The high-level steel bridge is one of Australia’s engineering icons and took ten years to construct from 1947.</span>
<span class="attribution"><a class="source" href="https://digital.slq.qld.gov.au/delivery/DeliveryManagerServlet?change_lng=en&dps_pid=IE193472">State Library of Queensland</a></span>
</figcaption>
</figure>
<p>Northern reconstruction left visible monuments: a <a href="https://trove.nla.gov.au/newspaper/article/61960245?searchTerm=Northern%20Delegation%20to%20Press%20for%20New%20Bridge%20across%20Burdekin&searchLimits=">massive steel bridge</a> over the<a href="https://www.abc.net.au/local/stories/2008/11/20/2424837.htm"> Burdekin River</a>, the <a href="https://trove.nla.gov.au/newspaper/article/61943106?searchTerm=Northern%20local%20authorities%20tully%20hydro%20scheme&searchLimits=">Tully Falls hydro scheme</a> and better <a href="https://trove.nla.gov.au/newspaper/article/62476173?searchTerm=highway%20works%20AND%20%22northern%20local%20authorities%22&searchLimits=exactPhrase=northern+local+authorities%7C%7C%7CanyWords%7C%7C%7CnotWords%7C%7C%7CrequestHandler%7C%7C%7CdateFrom=1944-01-01%7C%7C%7CdateTo=1960-12-31%7C%7C%7Cl-advstate=Queensland%7C%7C%7Csortby">road</a> and rail networks. Less visible outcomes included resources for local schools, <a href="https://trove.nla.gov.au/newspaper/article/62479098?searchTerm=achievements%20AND%20%22northern%20local%20authorities%22%20AND%20(highway%2C%20OR%20rail)&searchLimits=exactPhrase=northern+local+authorities%7C%7C%7CanyWords=highway%2C+rail%7C%7C%7CnotWords%7C%7C%7CrequestHandler%7C%7C%7CdateFrom=1945-01-01%7C%7C%7CdateTo=1955-12-31%7C%7C%7Cl-advstate=Queensland%7C%7C%7Csortby">tourism</a> development and <a href="https://www.palgrave.com/gp/book/9789811543814">better responses to natural disasters</a>. </p>
<p>The association even had a commitment to intellectual endeavour. It sponsored a young historian, Geoffrey Bolton, to write the region’s <a href="https://www.tandfonline.com/doi/abs/10.1080/14490854.2015.11668584?casa_token=fyxqoecflBoAAAAA%3AIag2hhnzWneUHEsIlKvSSp16-NGMrnJU9DobCd3TY_27EI21y5RWbIlkQUFHzXmKF-hu0aVaiX1hCg&">first scholarly history</a>.</p>
<h2>Regions hard hit again</h2>
<p>The global pandemic is not over. We still face the danger of further clusters of infections, a second wave is possible, and more deaths are likely. The shock waves from job losses, social disruption and isolation continue to spread more widely than the virus itself.</p>
<p>The nation’s regions have experienced this pandemic differently from metropolitan areas. In northern Australia, the impacts from disruption to tourism and other local economic sectors threaten to be devastating. In Western Australia, <a href="https://www.abc.net.au/news/2020-05-17/coronavirus-indigenous-health-safe-homeland-june-oscar/12245728?fbclid=IwAR3HrgjauK-oxAYVset_rfNuDEDAJechHOqqzFdRfQTq5N5odBK22QwdoMs">local networks have already proven invaluable</a>. </p>
<p>Across regional Australia, the historical example of “Northern Reconstruction” shows the capacity of local governments to lead disaster recovery.</p><img src="https://counter.theconversation.com/content/138547/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Patrick White receives funding from an Australian Government Postgraduate Award. Some of the research underpinning this article was funded by HDR Competitive Funding administered by James Cook University's College of Arts, Society and Education. </span></em></p><p class="fine-print"><em><span>Claire Brennan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In the wake of the coronavirus pandemic, regional Australia needs local government to emulate the example of the local councils that brought prosperity to North Queensland after the second world war.Patrick White, PhD Candidate in History and Politics, James Cook UniversityClaire Brennan, Lecturer in History, James Cook UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1399992020-06-03T12:31:18Z2020-06-03T12:31:18ZGovernment to give $25,000 grants to people building or renovating homes<figure><img src="https://images.theconversation.com/files/339473/original/file-20200603-130929-1icgtr0.jpg?ixlib=rb-1.1.0&rect=33%2C0%2C5518%2C3703&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://image.shutterstock.com/image-photo/close-industrial-bricklayer-installing-bricks-260nw-462881602.jpg">Shutterstock</a></span></figcaption></figure><p>The Australian government will provide eligible owner-occupiers with a grant of $25,000 to build a new home or extensively renovate an existing one.</p>
<p>The scheme – estimated to cost up to $688 million – will not be limited to first home buyers.</p>
<p>Contracts must be entered into between now and the end of the year, with work to begin within three months of the contract date, to maximise the stimulus to an industry set to take a big hit from the pandemic crisis.</p>
<p>The means-tested HomeBuilder scheme will be available to individuals with income up to $125,000 and couples whose combined income is up to $200,000.</p>
<p>It will not be available to companies or trusts, those who are not Australian citizens or people under 18 years of age. Owner builders will not be eligible, nor can the scheme be used for investment properties.</p>
<p>New builds must be for a principal place of residence with a cap on the combined value of house and land of $750,000.</p>
<p>Those renovating their existing home as a principal place of residence will have to be making changes valued between $150,000 and $750,000, with the dwelling worth not more than $1.5 million before the renovation.</p>
<p>The renovation must be “to improve the accessibility, safety and liveability” of the home. It can include a combination of work, such as a kitchen and bathroom renovation. </p>
<p>It can’t be for unconnected additions, such as detached sheds or garages, or for swimming pools, tennis courts or outdoor spas and saunas.</p>
<p>It must be under the supervision of a registered or licensed builder.</p>
<p>Sensitive to comparisons with the Rudd government’s stimulus grants in the global financial crisis, notably the controversial pink batts scheme, the government has listed differences including the limited term of the program, tighter eligibility criteria and expert supervision.</p>
<p>The latest package comes as Wednesday’s national accounts showed the Australian economy went backwards by 0.3% in the March quarter. Annual growth was 1.4%. </p>
<p>Treasurer Josh Frydenberg admitted Australia is already in recession, given the June quarter is expected to be horrendous. A common definition of a recession is two negative quarters.</p>
<p>Frydenberg also announced the government’s promised economic and fiscal update has been delayed, from June until July 23. </p>
<p>He said it would include the response to the review of JobKeeper, which is currently under way. He again flagged the government could cut the $1500 a fortnight payment for those earning less than that before COVID.</p>
<p>Shadow treasurer Jim Chalmers said the delay was a disgrace in these uncertain times.</p>
<p>The government says the housing scheme will help support 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector.</p>
<p>The sector has lobbied for special assistance, saying it expects new dwelling starts to fall by half by the end of this year.</p>
<p>The government expects competition for work will keep prices contained.</p>
<p>Frydenberg said that “with dwelling investment expected to decline by around 20% through the June quarter, the HomeBuilder program will support residential construction activity and jobs across the industry at a time when the economy and the sector needs it most”.</p>
<p>The scheme will be implemented through the states and territories, which will monitor compliance. The grant will be paid to people when they make their first progress payment.</p>
<p>Prime Minister Scott Morrison said: “Our JobKeeper support has helped the construction sector weather the crisis, now we’re helping fire it up again.</p>
<p>"This is about targeted taxpayer support for a limited time using existing systems to ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves.”</p>
<p>Housing Minister Michael Sukkar said “HomeBuilder will not only support the jobs of carpenters, plumbers, bricklayers and electricians on our building sites, it will also support the timber mill workers who produce the frames and trusses and the manufacturing workers who make the glass, brick and tiles for our homes”.</p>
<p>Some days ago, Labor’s housing spokesman Jason Clare said the housing industry was “expected to go off a cliff” and a stimulus package was urgently needed. Labor has also said stimulus should be given to social housing.</p><img src="https://counter.theconversation.com/content/139999/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The government will provide eligible owner-occupiers with $25,000 to build a new home or extensively renovate an existing one.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1386062020-06-03T03:02:24Z2020-06-03T03:02:24ZStimulus that retrofits housing can reduce energy bills and inequity too<figure><img src="https://images.theconversation.com/files/336228/original/file-20200519-152320-vmecqg.JPG?ixlib=rb-1.1.0&rect=0%2C0%2C3264%2C2228&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Nicola Willand</span>, <span class="license">Author provided</span></span></figcaption></figure><p>Stay-at-home orders and the economic crisis have increased the burden of energy costs on lower-income Australians. Poor housing quality and unequal access to home energy efficiency are hurting our most vulnerable households. With the next stage of the national recovery program expected to include <a href="https://www.theguardian.com/business/2020/jun/01/covid-19-stimulus-australian-government-targets-giant-construction-projects-and-home-renos-next">cash grants for home renovation</a>, now is the time to turn to housing retrofits that support health and well-being as well as boost jobs.</p>
<p>Staying at home during the COVID-19 pandemic <a href="https://www.energynetworks.com.au/news/energy-insider/2020-energy-insider/commercial-down-v-residential-up-covid-19s-electricity-impact/">increases households’ energy consumption and costs</a>. As <a href="https://www.theguardian.com/australia-news/2020/apr/13/coalition-expects-coronavirus-to-send-australias-unemployment-soaring-to-10">one in ten Australians might lose their jobs</a>, the pandemic is adding to the energy hardship of people who were already struggling to pay their bills.</p>
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Read more:
<a href="https://theconversation.com/the-other-99-retrofitting-is-the-key-to-putting-more-australians-into-eco-homes-91231">The other 99%: retrofitting is the key to putting more Australians into eco-homes</a>
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<h2>Access to energy is essential</h2>
<p><a href="https://theconversation.com/forget-heatwaves-our-cold-houses-are-much-more-likely-to-kill-us-83030">Cold housing is a known health risk</a>. <a href="https://doi.org/10.1016/S0140-6736(14)62114-0">Lancet research</a> attributes about 7% of Australian deaths to cold weather. Warm housing <a href="https://www.ashrae.org/file%20library/about/position%20documents/pd_infectiousaerosols_2020.pdf">reduces the risk of airborne infections</a>, as well as providing comfort for working and studying. </p>
<p>Laundry temperatures of 60-90°C are needed to <a href="https://apps.who.int/iris/bitstream/handle/10665/331497/WHO-2019-nCoV-IHR_Quarantine-2020.2-eng.pdf">limit the spread of the coronavirus</a>. But this conflicts with common energy-saving advice of washing clothes in cold water. Self-isolation also means heating more and not being able to close off unused rooms. </p>
<p>Low-income households, renters and older people are <a href="https://www.acoss.org.au/wp-content/uploads/2015/06/ACOSS_ENERGY_EFFICIENCY_PAPER_FINAL.pdf">more likely to live in energy-inefficient dwellings</a>. In fact, <a href="https://doi.org/10.1080/02673037.2019.1686130">most Australian housing has poor energy efficiency</a>. </p>
<p>When people on low incomes live in such housing, they are doubly disadvantaged by the challenges of needing more energy and not being able to afford it. Households with older people, people with chronic illness and children are particularly susceptible to <a href="https://vcoss.org.au/wp-content/uploads/2018/11/Persistent-Energy-Hardship-FINAL-Web-Single-Page.pdf">energy stress</a> and <a href="https://www.who.int/publications-detail/who-housing-and-health-guidelines">poor health outcomes</a>. </p>
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Read more:
<a href="https://theconversation.com/forget-heatwaves-our-cold-houses-are-much-more-likely-to-kill-us-83030">Forget heatwaves, our cold houses are much more likely to kill us</a>
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<h2>Stop-gap measures</h2>
<p>The <a href="https://www.energynetworks.com.au/about/our-members/covid-19-information/">temporary stop to disconnections in some states</a> recognises that access to electricity and gas is a basic need and essential for health and well-being. This guaranteed energy, and a commitment by Australian Energy Council retailers <a href="https://www.energycouncil.com.au/news/assistance-available-for-energy-customers/">not to charge penalty fees for late payment</a>, will give affected households some relief. </p>
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<a href="https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=900&fit=crop&dpr=1 600w, https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=900&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=900&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1131&fit=crop&dpr=1 754w, https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1131&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/339330/original/file-20200602-133866-clxm9i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1131&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Even if power bill payments are deferred, households must still eventually repay their mounting debts.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<p>However, bill payment will only be postponed until the end of July. Much of the expensive heating period will still be ahead of us. And after that households will face the costs of cooling homes in summer. </p>
<p>Energy debts are going to accumulate as a burden to low-income households into the future. Energy retailers might find it ethically difficult to resume disconnections, but customers will have to repay their debts. This will only be possible if their overall financial position improves and/or the cost of their energy decreases. </p>
<p>Income support via <a href="https://services.dhhs.vic.gov.au/energy">energy concessions</a> can ease bill stress. However, taxpayer money may be better spent on providing sustained relief by improving the energy performance of homes. <a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Acknowledging housing as essential infrastructure</a> would enable economic and social progress. </p>
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Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
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<h2>A lasting solution to energy poverty</h2>
<p>A long-term <a href="https://www.abc.net.au/news/2020-06-01/coronavirus-scott-morrison-stimulus-construction-entertainment/12306818">stimulus package for retrofits</a> would be welcome. The focus should be on comprehensive retrofitting to reduce energy demand, thus helping households to repay debt. Comprehensive or “deep retrofits” combine simple activities such as draught proofing with insulating ceilings, floors and walls, upgrading heating and cooling appliances, and installing solar PV systems. </p>
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<a href="https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=436&fit=crop&dpr=1 600w, https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=436&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=436&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=548&fit=crop&dpr=1 754w, https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=548&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/339092/original/file-20200602-95032-1leq7ue.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=548&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Many retrofits overlook the opportunity to install underfloor insulation when restumping a house.</span>
<span class="attribution"><a class="source" href="https://www.youtube.com/watch?v=Ca4OqUMqmMk">CSR Bradford/YouTube screenshot</a></span>
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<p>Initial findings of our <a href="https://cur.org.au/project/housing-energy-efficiency-transitions/">HEET (Housing Energy Efficiency Transitions)</a> research show <a href="https://environmentvictoria.org.au/2020/04/03/how-to-save-energy-at-home-during-covid-19/">simple retrofit measures are cheap and easy to do</a>, and DIYing is popular. However, some opportunities are missed because householders are not aware of what can and should be done. A common example is failing to install underfloor insulation when restumping the house.</p>
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<strong>
Read more:
<a href="https://theconversation.com/thinking-about-a-sustainable-retrofit-here-are-three-things-to-consider-70038">Thinking about a sustainable retrofit? Here are three things to consider</a>
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<p>Riding the <a href="https://www.theage.com.au/national/victoria/can-i-go-to-bunnings-diy-run-gets-tick-under-stay-at-home-rules-20200407-p54hwf.html">current wave of home improvements</a>, innovative retrofit initiatives may guide people in their DIY efforts. However, some training for proper DIY installation and the use of skilled tradespeople for technical installations is needed for safety and quality.</p>
<h2>Spread retrofitting benefits more widely</h2>
<p><a href="https://publications.industry.gov.au/publications/climate-change/climate-change/government/renewable-energy-target-scheme.html#Small-scale_Renewable_Energy_Scheme">Federal</a> and <a href="https://www.energy.vic.gov.au/energy-efficiency/victorian-energy-upgrades">state</a> subsidy schemes already promote retrofitting. But <a href="https://journal-buildingscities.org/articles/10.5334/bc.13/">recent research</a> suggests low-income households and renters have benefited less. The <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4130.0%7E2017-18%7EMedia%20Release%7EMore%20households%20renting%20as%20home%20ownership%20falls%20(Media%20Release)%7E10">one-in-three households that rent</a> their homes should not be missing out.</p>
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<p>
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Read more:
<a href="https://theconversation.com/as-power-prices-soar-we-need-a-concerted-effort-to-tackle-energy-poverty-98764">As power prices soar, we need a concerted effort to tackle energy poverty</a>
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<p>Putting people at the centre of retrofitting programs will provide healthier homes and help tackle unemployment. This means providing retrofit assistance to those who need it most and training people in retrofit skills.</p>
<p>Previously, the boom in new housing construction inhibited retrofitting. This might change following the COVID-19 crisis. A long-term retrofit program would be an opportunity to upskill builders and to retrain newly unemployed Australians, particularly the young people who have been <a href="https://www.abc.net.au/news/2020-05-05/almost-one-million-australians-lose-jobs-due-to-coronavirus/12215494">most affected by job losses</a>. An expanded retrofit workforce is needed to reach the large number of inefficient homes. </p>
<p>So-called “Green Deals” have already been proposed in <a href="https://www.weforum.org/agenda/2020/05/the-european-green-deal-must-be-at-the-heart-of-the-covid-19-recovery/">Europe</a>, the <a href="https://www.theguardian.com/commentisfree/2020/apr/20/climate-crisis-will-deepen-the-pandemic-a-green-stimulus-plan-can-tackle-both">US</a> and the <a href="https://www.architectsjournal.co.uk/news/calls-for-retrofit-drive-to-spark-post-covid-green-economic-recovery/10047044.article">UK</a>. Green construction stimulus packages in Australia have <a href="https://www.anao.gov.au/work/performance-audit/home-insulation-program">successfully supported economic recovery before</a>.<br>
The aim should be to spawn a new industry of energy-efficient builders who will continue to contribute to the upgrade and upkeep of Australian housing. This could help cut greenhouse gas emissions, promote public health and improve our <a href="https://www.themandarin.com.au/132047-defence-commissioned-report-warned-of-australias-weaknesses-in-crises-year-before-covid-19-hit/">resilience to crises</a>.</p>
<p>A nationwide stimulus package to provide healthier and more energy-efficient homes would help the most vulnerable and boost the economy.</p><img src="https://counter.theconversation.com/content/138606/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicola Willand receives funding for research, including on retrofits, energy efficiency and health, from various organisations, including the Australian Research Council, the Victorian State Government, Department of Environment, Land, Water and Planning (DELWP), the Lord Mayor’s Charitable Foundation, the Australian Housing and Urban Research Institute and the Future Fuels Collaborative Research Centre (FF CRC).</span></em></p><p class="fine-print"><em><span>Bhavna Middha receives funding from the Australian Research Council (ARC) and the Australian Housing and Urban Research Institute (AHURI). </span></em></p><p class="fine-print"><em><span>Emma Baker receives funding from the Australian Research Council and the Australian Housing and Urban Research Institute. She is a board member of Habitat for Humanity SA. </span></em></p><p class="fine-print"><em><span>Ralph Horne has recently received funding for research on housing and households from the Australian Research Council; the Australian Housing and Urban Research Institute, and The Victorian State Government, Department of Environment, Land, Water and Planning (DELWP).</span></em></p><p class="fine-print"><em><span>Trivess Moore has received funding from various organisations including the Australian Research Council, Australian Housing and Urban Research Institute, Victorian Government and various industry partners.</span></em></p>A long-term housing stimulus package that focuses on retrofitting to cut energy demand would also help households repay the debts being accumulated during this crisis.Nicola Willand, Senior Lecturer, School of Property, Construction and Project Management, RMIT UniversityBhavna Middha, Research Fellow, Centre for Urban Research, RMIT UniversityEmma Baker, Professor of Housing Research, University of AdelaideRalph Horne, Associate Deputy Vice Chancellor, Research & Innovation, College of Design & Social Context, RMIT UniversityTrivess Moore, Senior Lecturer, School of Property, Construction and Project Management, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1396562020-05-29T05:45:49Z2020-05-29T05:45:49ZPolitics with Michelle Grattan: Treasurer Josh Frydenberg on saving Australia’s tourism and construction industries<p>As Australia slowly emerges from isolation, the nation’s economy is reopening, and even looking rather better than expected. But Australia still faces grim months ahead as unemployment numbers grow and the true extent of business survival rates emerge. </p>
<p>Treasurer Josh Frydenberg described the economic data as sobering when he recently gave an update to parliament. In this podcast, Frydenberg says there would be greater reason for optimism, especially for the tourism sector, if states were more willing open their borders. </p>
<p>“Now we need to see those state borders opened, whether it’s in Queensland or Western Australia, South Australia or Tasmania,” he says.</p>
<p>The Northern Territory will begin easing its border restrictions from June 15, scrapping mandatory quarantine for interstate arrivals. But both the Queensland and Western Australian governments say they will likely keep the measures in place for several months. Tasmania’s premier too is standing firm on his decision to keep the state’s borders closed.</p>
<p>Frydenberg says the government has reacted to COVID-19 “in an unprecedented way in terms of the scale and the size of our response” but reiterates that “the measures are temporary and targeted. And we want people to get back to work as soon as possible”.</p>
<p>However he acknowledges the housing construction and tourism sectors are in need of particular support.</p>
<p>On housing, “we recognise that there may be contracts in place to July or August, which is going to see the pipeline continue to then, but then we’re going to see probably a steady fall after that. And that’s the gap that we need to try to fill with particular measures.” </p>
<p>“It’s a watching brief, but certainly both areas are a focus for the government.” </p>
<p>Frydenberg also indicates that after the June review of the JobKeeper payment, some people could get less money than they are receiving now.</p>
<p>“There are a few issues we need to look at, including some workers within the JobKeeper programme getting paid more than they normally would otherwise get.” </p>
<h2>Transcript (edited for clarity)</h2>
<p><strong>Michelle Grattan:</strong> Our economy is starting to reopen and indeed things may be better than earlier expected, but we’re still in for a very grim few months as unemployment numbers grow and some businesses won’t be able to survive despite the government’s relief package. Treasurer Josh Frydenberg described the economic data as sobering when he recently gave an update to parliament. Soon, he’ll release new figures about where the economy is heading. Meanwhile, Treasury and the tax office were embarrassed when it became clear the costings for the job keeper scheme had been grossly over estimated. The scheme is now expected to cost some $70 billion rather than the original estimate of $130 billion. But the government is rejecting calls to extend its coverage. Josh Frydenberg joins us today. </p>
<p>Josh Frydenberg, the national accounts are coming out next week. What’s your best guess as to how things will look? </p>
<p><strong>Josh Frydenberg:</strong> Well, the first quarter was really a tale of two halves. We had the economy strengthening the backend of last year, and we saw in February that unemployment had fallen to 5.1 per cent. But we also saw throughout those early months of the year the impact of the bushfires not only on the community, but also on the economy. Then in mid-March, we started to see restrictions come in and no doubt that was affecting the economy. We also saw some panic buying, particularly at our supermarkets. And so it will be interesting to see what the numbers are in in the March quarter. But we certainly know that the June quarter is where the real hit to the bottom line will be felt. </p>
<p><strong>MG:</strong> Are you betting on negative or positive for the March quarter? </p>
<p><strong>JF:</strong> Well, I think the market expectation is for a negative quarter. But again, we’ll just have to wait and see and everyone will turn on Wednesday for the result. </p>
<p><strong>MG:</strong> All in all, as you say, it’s going to be bad in the time ahead, even though perhaps not as bad as previously thought. Do you agree we already now in recession?</p>
<p><strong>JF:</strong> Oh look, as you know, that is determined by two consecutive quarters of negative economic growth and the numbers will be what they are. But what we do know is that when we came into this crisis and is, of course, a health crisis with a severe economic impact, we did so from a position of economic strength. As I said, GDP growth was increasing at the back half of last year. We saw unemployment fall. We saw the budget balance for the first time in 11 years, we created some one and a half million new jobs. Workforce participation had reached record highs. And we continue to see strong demand for our exports. And that is all been a good sign for the economy. But certainly the impact of the COVID crisis is very severe and we’re going to see the numbers get worse before they get better. </p>
<p><strong>MG:</strong> Treasury has explained its forecasting error in the JobKeeper estimate as partly driven by the fact the economy’s not quite as bad as it thought, yet it still has the same unemployment forecast that it had before. Is there some mismatch here? </p>
<p><strong>JF:</strong> Well, the announcement of JobKeeper was on the 30th of March. And in the week leading up, we saw double digit increases in the number of daily cases of Coronavirus. And Treasury had thought that there was a possibility that we could go into lockdown, akin to what had happened in Europe. The result of that would have been disastrous for the economy, indeed. And I’ve spoken publicly about it, that the potential impact could have been to see GDP in the June quarter fall by more than 20%. That would have seen a hit to the economy of more than $100 billion. So that’s the cliff that we were standing on. </p>
<p><strong>MG:</strong> But what about its unemployment forecast? </p>
<p><strong>JF:</strong> And the unemployment forecast of reaching around 10 per cent in the June quarter was announced mid-April and so was announced later than the JobKeeper package was announced. And therefore, at a slightly different time and as you know from Treasury’s statement, that they’ve stuck to that forecast around unemployment peaking at around 10% in the June quarter. But for the JobKeeper package, it would have been around 15%. </p>
<p><strong>MG:</strong> Now, the priority has been keeping the virus under control and we have at least so far done very well on that front. Is your priority now, the government’s priority, dealing with unemployment? Is that the first and foremost task? </p>
<p><strong>JF:</strong> Well, I think you’ve got to deal with the health impacts and the economic impacts simultaneously. You can’t take your eye off the ball for either of those challenges. And you’re right to underline the progress that we’ve made, Michelle, on the health front. I mean, if you if you look at the United States, more than 100,000 deaths, if you look at the United Kingdom, nearly 40,000 deaths. I mean Australia has avoided the fate of other nations because we moved quickly with closing the borders, but also the quality of our health system and the fact that the public followed the health advice. All of that has succeeded in flattening the curve and seeing the growth number of daily cases going from more than 20% to less than 0.5%. On the economic front, we’re going to see elevated unemployment. There’s no doubt about that. And that is what has driven policies like the JobKeeper programme to maintain that formal connection between the employee and the employer. We’ll continue to maintain a watching brief over the various sectors of the economy that could be slower to recover than others. And I’m thinking particularly about tourism as one, as long as those international borders are closed. But we will continue to do what is necessary to support those economies because we do want to see as many people get back into work. And the best way to do that is to follow the medical advice and to lift those restrictions, because the first three stages of lifting those restrictions, as agreed to by national cabinet recently, will see some 850,000 people get back into work. </p>
<p><strong>MG:</strong> And we seem to be going faster, about to go faster on that than perhaps we previously… </p>
<p><strong>JF:</strong> It’s a positive. It’s a positive with kids back in school, cafes and pubs starting to open. Now we need to see those state borders opened, whether it’s in Queensland or Western Australia, South Australia or Tasmania. There is no medical reason, according to the deputy chief medical officer, as to why those state borders should be closed. </p>
<p><strong>MG:</strong> We know that unemployment is slow to recover after a recession. History tells us that…</p>
<p><strong>JF:</strong> That was the experience of the 1990s. </p>
<p><strong>MG:</strong> We are now above six and rising. How many years do you think it will take to get back to a number with a five in front of us? </p>
<p><strong>JF:</strong> Well, again, the economic environment is very uncertain. And you heard that just yesterday from the RBA governor. What we do know is that there is a lag. It does take time. And certainly the most recent unemployment number of 6.2% did not fully reflect the changes that we’re seeing in the labour force. Nearly 600,000 fewer people in a job in the last month reported as opposed to the month prior. And that’s because people are no longer actively looking for work because they look at the job market and what has been the impact of the coronavirus. So it is going to be a challenging time. We have to look at it sector by sector, but we are putting the support packages in place. And one of the areas that we’re working on right now is the housing construction sector, because we recognise that there may be contracts in place to July or August, which is going to see the pipeline continue to then, but then we’re going to see probably a steady fall after that. And that’s the gap that we need to try to fill with particular measures. </p>
<p><strong>MG:</strong> So we can expect a support package on housing in a week or two. And then perhaps a support package on Tourism, is that right? </p>
<p><strong>JF:</strong> Well, again, it’s a watching brief, but certainly both areas are a focus for the government. </p>
<p><strong>MG:</strong> Would the government rather, as it seems give extra aid through targeted support packages rather than extending JobKeeper out in time? </p>
<p><strong>JF:</strong> Well, the JobKeeper programme was always temporary. It was always targeted. And as you know, it’s legislated for that six month period with a review midway. And again, the governor said yesterday that was very sensible to do that review. There are a few issues we need to look at including the some workers within the JobKeeper pay programme getting paid more than they normally would otherwise get. And that’s going to be the subject of the review as well. </p>
<p><strong>MG:</strong> So what else will the review look at besides cutting back those particular workers? </p>
<p><strong>JF:</strong> Well, it’s going to look at how the programme has been implemented to date. As you know, it’s been we’ve been working with the employers and using their payroll systems and paying them who then pay their employees. We’ll just assess its implementation. And, of course, the very strong take up that we’ve seen. I mean, if you’re talking about 3.5 million people being covered by the JobKeeper programme, and then you add that to the number on the JobSeeker program, you’ve got around half the private sector workforce who are on one of those two programs and that cannot continue indefinitely. As you understand, there is no money tree, Michelle, the government’s going to be very conscious of the overall economic impact of these measures. And we’ve responded in an unprecedented way in terms of the scale and the size of our response. But the measures are temporary and targeted. And we want people to get back to work as soon as possible. </p>
<p><strong>MG:</strong> But despite being no money tree, it does seem that there’s going to have to be some more stimulus after September. Do you accept that? </p>
<p><strong>JF:</strong> Well, again, it goes back to targeted sector based support is an area that we’re focussing on now and looking at, but as well and understanding the overall position that the economy is in. And it is very uncertain at the current time. But we do we do start to say we are starting to see more economic activity, whether it’s, you know, more people going onto public transport or driving on our roads or going through the shopping centres. More economic activity is being generated as the restrictions are starting to be eased. </p>
<p><strong>MG:</strong> Scott Morrison’s flagged tax reform and reform of the federation as part of the government’s agenda. Now, we’ve been there before. Do you think the pandemic will enable changes in these areas that haven’t been able to be achieved before? </p>
<p><strong>JF:</strong> I think there’s a really constructive and productive dialogue between the federal, state and territory governments. That’s been accelerated through the crisis. And I think that goodwill is present and and hopefully will continue. I can only speak for the state and territory and and myself as the federal treasurer from the meetings that we’ve had to date. And we made pretty much on a weekly basis. And it’s been really useful to exchange notes, to get briefings, to talk about what we’re seeing and hearing and how we can work together. And, for example, you know, we’ve been working recently on the five year health agreement together. So the treasurers look across the economy, across sectors, work with portfolio ministers and its been a very useful forum. And certainly at the national cabinet level, I think it’s been what the country has wanted and needed at this time to know that the governments, regardless of their geography and regardless of their political persuasion, we’re putting the national interest first. </p>
<p><strong>MG:</strong> You’d have to lead a major tax debate if there was one. Do you have the inclination, the energy after all this to do that? </p>
<p><strong>JF:</strong> Well, certainly, I think cutting taxes is important, and that’s been our track record. Let us not forget…</p>
<p><strong>MG:</strong> Reforming, not just cutting. </p>
<p><strong>JF:</strong> Well, if you talk about the reforms that were passed in the last two budgets, it’s been very significant. $300 billion dollars plus of tax cuts, but importantly, one single bracket between 45,000 dollars and 200,000 dollars being created where the marginal rate of tax is no more than 30 cents in the dollar. That’s the vast bulk of income taxpayers and that’s a very substantial reform. On company tax, we succeeded to to reduce company tax down to 25 percent for businesses with a turnover of less than 50 million dollars. Obviously, we want it to go further. But the reality was such that we couldn’t get it through. </p>
<p><strong>MG:</strong> You’ve given up on that. </p>
<p><strong>JF:</strong> Well, the reality was such that we couldn’t get it through. We’re always been a party that looks for opportunities to cut taxes. </p>
<p><strong>MG:</strong> So would there be a new opportunity on company tax. </p>
<p><strong>JF:</strong> Well, look, I’ve always said that our company tax rate is particularly high compared to other nations, but we’re in the process now, as I said at the press club recently, we’re in the process now of not putting out a shopping list of reforms, but of going through the various options that are available for us, sifting through those options, analysing them, and particularly, looking at options that have been raised in the past, now with a fresh set of eyes, because we can’t afford to go back to business as usual as far as the economy is concerned. This is a new economic environment that Australia and the world faces right now. And we’re going to need to be more efficient as we try to compete for global capital. </p>
<p><strong>MG:</strong> Just a couple of things before we finish. Your retirement incomes review is due to report late September. Can we be sure that the government won’t try to reverse the legislated rise to the superannuation guarantee, which comes into effect mid next year? </p>
<p><strong>JF:</strong> Look, we’ve commented on that in the past, as you rightly say. It’s been legislated. What we are focussed on is our reforms.</p>
<p><strong>MG:</strong> No change in jobs, no attempt to change.</p>
<p><strong>JF:</strong> Well, again, I’ve said I’ve answered that plenty of times in the past, I’ve said this: we had no plans, we have no plans to do that. </p>
<p><strong>JF:</strong> But I am obviously looking at all opportunities across the board for ways to strengthen the economy and to create more jobs. </p>
<p><strong>MG:</strong> No plans always looks like a little bit of a gate open. Just finally, Josh Frydenberg, are you more optimistic about the Australian economy than you were four weeks ago? </p>
<p><strong>JF:</strong> Well, I’m certainly more optimistic than I was at the height of the pandemic here in Australia, where we saw the number of daily cases increasing much more rapidly than they are today. And I think the progress on the health front is going to produce a significant economic dividend as far as getting people back into work and and generating more economic activity. There is a long way to go, as the prime minister has said, it’s a three to five year proposition that we face, and there’ll be lower aggregate demand, there will be higher unemployment. And clearly, the global economy is also suffering right now with the United States seeing 40 million jobless claims in the last nine weeks and major falls in GDP quarterly growth in China and in Europe. So the impact is very, very severe across the economy. But we’re much better placed than many other nations, not only leading into this crisis, but also coming out of it. And and we’ll continue with our reform agenda and we’ll continue to advocate for the national interests as we build that bridge to recovery. </p>
<p><strong>MG:</strong> Josh Frydenberg, thanks very much for talking with The Conversation today.</p>
<h2>New to podcasts?</h2>
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<p><a href="https://itunes.apple.com/au/podcast/politics-with-michelle-grattan/id703425900?mt=2"><img src="https://images.theconversation.com/files/233721/original/file-20180827-75984-1gfuvlr.png" alt="Listen on Apple Podcasts" width="268" height="68"></a> <a href="https://www.google.com/podcasts?feed=aHR0cHM6Ly90aGVjb252ZXJzYXRpb24uY29tL2F1L3BvZGNhc3RzL3BvbGl0aWNzLXdpdGgtbWljaGVsbGUtZ3JhdHRhbi5yc3M"><img src="https://images.theconversation.com/files/233720/original/file-20180827-75978-3mdxcf.png" alt="" width="268" height="68"></a></p>
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<h2>Additional audio</h2>
<p><a href="http://freemusicarchive.org/music/Lee_Rosevere/The_Big_Loop_-_FML_original_podcast_score/Lee_Rosevere_-_The_Big_Loop_-_FML_original_podcast_score_-_10_A_List_of_Ways_to_Die">A List of Ways to Die</a>, Lee Rosevere, from Free Music Archive.</p>
<p><strong>Image:</strong></p>
<p>Joel Carrett/AAP</p><img src="https://counter.theconversation.com/content/139656/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Michelle Grattan discusses the economy post-coronavirus with Treasurer Josh FrydenbergMichelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1387762020-05-19T12:14:57Z2020-05-19T12:14:57ZEveryday ethics: Should I be taking unemployment insurance?<figure><img src="https://images.theconversation.com/files/335728/original/file-20200518-83397-f48ly7.jpg?ixlib=rb-1.1.0&rect=24%2C0%2C5367%2C3031&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The crisis has forced many businesses to close, prompting a spike in unemployment claims.</span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Virus-Outbreak-Economy-Jobs-Report/3473522e1a2c4fe9a277a00340299772/21/0">AP Photo/Rick Bowmer</a></span></figcaption></figure><figure class="align-left ">
<img alt="" src="https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=250&fit=crop&dpr=1 600w, https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=250&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=250&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=314&fit=crop&dpr=1 754w, https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=314&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/327254/original/file-20200410-174608-3elamt.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=314&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p><em>A lot of people are facing ethical decisions about their daily life as a result of the coronavirus. Ethicist <a href="http://www.leemcintyrebooks.com/">Lee McIntyre</a> has stepped in to help provide advice over the moral dilemmas we face. If you have a question you’d like a philosopher to answer, send it to us at <a href="mailto:us-ethicalquestions@theconversation.com">us-ethicalquestions@theconversation.com</a>.</em></p>
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<p>Like many, I’ve spent a lot of time with a calculator as of late figuring out how far our savings will stretch. We have enough income and savings to get us through another 15-plus months and also have assets we could liquidate and family offering to help. But our business’s client base has dropped precipitously since mid-March and we qualify for unemployment. What are the ethics of using our own financial resources to get by versus tapping into things like unemployment insurance? Should those of us who have other options leave public resources for those who don’t? – Anonymous, Boston</p>
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<p>Unemployment insurance is meant to compensate for lost income, not be a last resort only once you are destitute. </p>
<p>By design, unemployment insurance is not supposed to be a “zero-sum game” – where your taking benefits would somehow deprive others. But these aren’t normal times and, even if they were, this isn’t “free money” either. There are already <a href="https://abcnews.go.com/Business/states-running-unemployment-money-claimants-shouldnt-worry/story?id=70495863">reports of states running through their unemployment</a> funds due to the millions of new claims that have resulted from coronavirus. This means some states will likely have to borrow from the federal government. But what happens <a href="https://www.businessinsider.com/state-unemployment-funds-are-running-out-of-money-2020-4">when that money runs out</a> too? </p>
<p>States cannot normally run a deficit, and any debts to the federal government will have to be repaid. The federal government, of course, can borrow as much as it likes, but this comes at a cost too. Ultimately, either at the state or federal level, all of us pay for public spending in the form of increased taxes, deficits or diverting money from other programs. Even if Congress backstops the states, the money has to come from somewhere – which likely means future generations. So your original question still stands, even if the people who “need it more than you” are your grandchildren, rather than your neighbors.</p>
<p>Here it is important to consider the difference between duty and charity. Some people feel they owe nothing to anyone else. As long as they aren’t stealing or cheating, they can take what they are entitled to. Others, like utilitarianism philosopher Peter Singer, <a href="http://www.bbc.co.uk/ethics/charity/duty_1.shtml">balk at such a minimal concept of duty</a>. But if you are an altruist it may not make much difference whether you feel that you “owe” something to someone else, or it just seems right to give more when you can afford it.</p>
<p>I am torn here because in a sense you are penalizing yourself for planning ahead. It seems deeply unfair to me that individuals like you are wrestling with these questions, while big corporations are <a href="https://www.forbes.com/sites/jeremybogaisky/2020/03/27/united-airlines-to-workers-expect-layoffs-after-bailout-restrictions-end/#7dfdfe1f2e2c">taking taxpayer-funded bailouts</a>, then turning around and firing their employees a few months later. </p>
<p>One might say that keeping these companies in business is good for everyone. But might one say the same thing about the aggregate of small businesses such as yours? </p>
<p>You don’t know what the future will bring. If in 15 months you have lost your savings, tapped out family resources and closed your business, might you look back and wish you had collected unemployment benefits? </p>
<p>I do not think it would be unethical for you to collect unemployment benefits; who could blame you? If you were to forego the money, however, your actions would be morally praiseworthy and fall into the category of a <a href="https://plato.stanford.edu/entries/supererogation/">supererogatory act</a> – one that goes “above and beyond” anyone’s duty. Some actions, though right, fall outside what we could reasonably expect someone to feel morally obligated to do: say, the soldier who jumps on a grenade or the homeless person who takes something out of their own pocket to help another.</p>
<p>These actions define us, especially in times of crisis. During the pandemic, it is the <a href="https://www.wsj.com/articles/a-double-risk-on-the-coronavirus-front-line-and-older-11588104484">physician in a high-risk group</a> who treats COVID-19 patients or the farmer who <a href="https://www.cnn.com/2020/05/06/us/kansas-farmer-cuomo-honorary-degree-trnd/index.html">donates a precious N95 mask he finds in his barn</a> to first responders. These actions are special, because they are what <a href="https://therudeparrot.wordpress.com/2015/08/26/oj-urmons-saints-and-heroes/">philosopher John Urmson</a> calls the province of “saints and heroes.”</p>
<p>Only you can decide whether you want to hold yourself to such a high standard.</p>
<p>[<em>The Conversation’s newsletter explains what’s going on with the coronavirus pandemic. <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=upper-coronavirus-daily">Subscribe now</a>.</em>]</p><img src="https://counter.theconversation.com/content/138776/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Lee McIntyre does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>With so many people in need of financial support due to the coronavirus crisis, is it right to draw on unemployment when you have savings?Lee McIntyre, Research Fellow, Center for Philosophy and History of Science, Boston UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1382652020-05-10T19:59:48Z2020-05-10T19:59:48ZLet’s “SnapBack” to better society with more secure jobs: Anthony Albanese<p>Anthony Albanese says Australia must use the pandemic experience to move to a more resilient society, creating more permanent jobs and revitalising high value manufacturing.</p>
<p>In his fifth “vision statement”, delivered against the background of the government foreshadowing an extensive post-crisis reform agenda, Albanese is giving a broad outline of Labor’s priorities for change.</p>
<p>The Monday speech, issued ahead of delivery, comes a day before parliament resumes for a three-day sitting expected to be more combative than the previous two one-day sittings. It also precedes Josh Frydenberg’s economic update on Tuesday - the day the treasurer was, pre-pandemic, due to deliver the budget, now delayed until October.</p>
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<a href="https://theconversation.com/grattan-on-friday-the-delicate-art-of-political-distancing-during-the-pandemic-138127">Grattan on Friday: The delicate art of political distancing during the pandemic</a>
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<p>Referring to the government’s “SnapBack” terminology, Albanese says: “Let’s not SnapBack to insecure work, to jobseekers stuck in poverty, to scientists being ignored.”</p>
<p>“It’s no time for a ‘SnapBack’ to the Liberal agenda of cutting services, suppressing wages and undermining job security.</p>
<p>"This pandemic has shown that Labor’s values of fairness and security and our belief in the power of government to shape change to the advantage of working people are the right ones.</p>
<p>"A constrained fiscal position does mean difficult choices. But a reform agenda that doesn’t work for all Australians isn’t one we should pursue”.</p>
<p>Albanese says Labor has been constructive during the crisis, not allowing “the perfect to be the enemy of the good”; he contrasts its approach with the Coalition’s negativity against the Labor government during the global financial crisis.</p>
<p>While Australians have been getting through the crisis together, it has been tougher for some than others, including those who have lost jobs and businesses, he says.</p>
<p>“Sharing the sacrifice to get through the crisis together has to mean working to secure a recovery in which no one is left behind.</p>
<p>"We have to be clear in recognising that those with the least, have suffered the most through this crisis – something that must change.</p>
<p>"It’s critical that we are still saying , ‘we’re all in this together’, after the lockdown has come to an end,” Albanese says.</p>
<p>“We must move forward to having not just survived the pandemic, but having learned from it.</p>
<p>"To secure a more resilient society, given just how quickly things can change, through no fault of anyone.</p>
<p>"To better recognise the contributions of unsung heroes, like our cleaners, supermarket workers and delivery workers. To honour our health and aged care workers.</p>
<p>"To recognise that young people have done more than their share.</p>
<p>"Young people deserve better than an economy and society that consigns them to a lifetime of low wages, job insecurity, and unaffordable housing.</p>
<p>"We must ensure that what emerges is a society that no longer seems stacked against them, or denies them the opportunity and economic security of older generations”.</p>
<p>Albanese says this is a once-in-a-political lifetime event that “creates once-in-a-century opportunity to renew and revitalise the federation” and “a once-in-a-generation chance to shape our economy so it works for people and deepens the meaning of a fair go”.</p>
<p>“We must build more permanent jobs, an industrial relations system that promotes co-operation, productivity improvements and shared benefits,” he says.</p>
<p>“We must revitalise high value Australian manufacturing using our clean energy resources.”</p>
<p>He also urges nation building infrastructure including high speed rail and the local construction of trains; a decentralisation strategy including restoring public service jobs in agencies such as Centrelink that deliver services to regional areas; a conservation program to boost regional employment; and governments working with the private sector and superannuation funds to deliver investment in social and affordable housing.</p>
<p>“A housing construction package should include funding to make it easier for essential workers to find affordable rental accommodation closer to work.”</p>
<p>Albanese says that “too much of the risk in our economy has been shifted onto those with the least capacity to manage in tougher times.</p>
<p>"The broadest burden has been put on the narrowest shoulders.</p>
<p>"Our economy has become riskier, and we need to think through what that means for us all.</p>
<p>"We need to realise that a good society can’t thrive when the balance between risk and security falls out of step.”</p>
<p>Albanese says there needs to be an emphasis on growth, “because only inclusive economic growth can raise our living standards.</p>
<p>"We need to put more emphasis on secure employment - especially for the next generation of younger workers who nowadays have little idea of the meaning of reliable income or holiday pay”.</p><img src="https://counter.theconversation.com/content/138265/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In his fifth “vision statement”, opposition leader Anthony Albanese outlines labor’s priorities for change and opportunity.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1368382020-05-05T19:52:53Z2020-05-05T19:52:53ZThe PM wants to fast-track mega-projects for pandemic recovery. Here’s why that’s a bad idea<p>Our governments are <a href="https://theconversation.com/its-just-started-well-need-war-bonds-and-stimulus-on-a-scale-not-seen-in-our-lifetimes-137155">committing taxpayers to further debt</a> as part of a planned recovery from the economic impacts of the coronavirus pandemic. Infrastructure spending is great for economic stimulus, but it has to be the right kind of infrastructure. </p>
<p>These are some of our largest public investments, so we want this public money to work a lot harder to create multiple rather than just singular benefits. As well as quickly providing jobs and the economic benefits of solving the problems of transport or energy supply, stimulus projects need to deliver broad, long-term community value, <a href="https://theconversation.com/as-coronavirus-widens-the-renter-owner-divide-housing-policies-will-have-to-change-135808">reduce inequality</a> and help <a href="https://theconversation.com/sorry-to-disappoint-climate-deniers-but-coronavirus-makes-the-low-carbon-transition-more-urgent-135419">counter climate change</a>. </p>
<p>The focus of <a href="https://www.smh.com.au/politics/federal/scott-morrison-flags-company-tax-cuts-ir-reform-as-key-to-covid-19-economic-recovery-20200417-p54kvq.html">fast-tracked infrastructure spending</a> in the pandemic recovery should be many smaller-scale projects that provide these broader benefits. Hence these projects will provide greater value than the <a href="https://investment.infrastructure.gov.au/">transport mega-projects</a> that had already been <a href="https://theconversation.com/government-to-inject-economic-stimulus-by-accelerating-infrastructure-spend-127358">proposed for economic stimulus</a>. </p>
<p>For example, the <a href="https://www.smh.com.au/politics/federal/labor-backs-economic-game-changer-high-speed-rail-as-part-of-pandemic-recovery-20200418-p54l24.html">high-speed rail project</a> Labor has proposed will help decarbonise travel, but it won’t provide enough jobs in the short or medium term. Major road projects will cut commuting time for some drivers, but won’t provide widespread benefits or longer-term employment. New roads also increase emissions and often damage neighbourhoods.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/look-beyond-a-silver-bullet-train-for-stimulus-136834">Look beyond a silver bullet train for stimulus</a>
</strong>
</em>
</p>
<hr>
<h2>Good infrastructure delivers broad benefits</h2>
<p>Infrastructure projects are such significant economic engines they can incorporate community improvement without compromising their other outcomes. </p>
<p>The ways in which projects get planned and implemented hold the key. For example, projects should involve local businesses, give hiring preference to long-term unemployed people and use sustainable materials. </p>
<p>Infrastructure planning can integrate multiple functions. For example, water-management infrastructure (for drainage or flooding) can be designed to include open space, tree cover, recreation and cycleways. Streets can be designed as beautiful public spaces that include pedestrians, cyclists and cars, as well as tree canopy and water storage.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"895711876029349889"}"></div></p>
<p>Good infrastructure used for employment creation and economic recovery looks like <a href="https://www.britannica.com/event/New-Deal">Roosevelt’s New Deal</a> of the 1930s. These programs created a legacy of high-quality public infrastructure across the United States. </p>
<p>A “Green New Deal” approach in Australia could focus on smaller-scale projects, including:</p>
<ul>
<li><p><a href="https://theconversation.com/physical-distancing-is-here-for-a-while-over-100-experts-call-for-more-safe-walking-and-cycling-space-137374">infrastructure to promote walking and cycling</a></p></li>
<li><p>tree planting to <a href="https://theconversation.com/a-solution-to-cut-extreme-heat-by-up-to-6-degrees-is-in-our-own-backyards-133082">reduce heat and store carbon</a></p></li>
<li><p><a href="https://theconversation.com/drought-fire-and-flood-how-outer-urban-areas-can-manage-the-emergency-while-reducing-future-risks-131560">land-management strategies to reduce fire and flood risks</a></p></li>
<li><p><a href="https://theconversation.com/coronavirus-and-the-economy-we-need-green-stimulus-not-fossil-fuel-bailouts-133492">renewable energy infrastructure</a> of all kinds</p></li>
<li><p><a href="https://theconversation.com/we-dont-know-what-weve-got-till-its-gone-we-must-reclaim-public-space-lost-to-the-coronavirus-crisis-135817">improvements to public open spaces</a></p></li>
<li><p><a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">retrofitting and enhancing schools</a></p></li>
<li><p><a href="https://www.greenway.org.au/">multipurpose greenways</a>. </p></li>
</ul>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/N1z0gn5gKRs?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">This greenway traverses Sydney’s Inner West municipality.</span></figcaption>
</figure>
<p>These types of projects are fast to get going and labour-intensive. They can be implemented in both cities and regional areas. These projects can also build longer-term employment capacity and help with the transition of workers out of fossil fuel industry jobs. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-future-of-cities-in-the-face-of-twin-crises-136765">The future of cities in the face of twin crises</a>
</strong>
</em>
</p>
<hr>
<h2>Bigger isn’t necessarily better</h2>
<p>The largest infrastructure projects, like those being proposed, are the riskiest in terms of <a href="https://theconversation.com/spectacular-cost-blowouts-show-need-to-keep-governments-honest-on-transport-66394">cost blowouts</a> and often deliver limited social and environmental value. In many instances their <a href="https://www.jstor.org/stable/23607068?seq=1">claimed economic value is also doubtful</a>, as their costs are modelled inaccurately and their benefits and use are often vastly exaggerated. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/spectacular-cost-blowouts-show-need-to-keep-governments-honest-on-transport-66394">Spectacular cost blowouts show need to keep governments honest on transport</a>
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</em>
</p>
<hr>
<p>One cause of cost blowouts is that governments are often reluctant to commit to spending in the early stages of major projects. This means commitments are often <a href="https://theconversation.com/missing-evidence-base-for-big-calls-on-infrastructure-costs-us-all-99080">made before projects are well enough understood</a>. Early spending to explore alternatives, understand impacts and consult widely can often <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1745-5871.2009.00606.x">realise projects more quickly and with more predictable outcomes</a> that better serve the public interest.</p>
<p>The Morrison government is promoting the myth of fast-tracking through the cutting of <a href="https://www.abc.net.au/news/2020-04-25/coronavirus-eeconomy-reforms-usual-suspects/12182786">red tape</a> and <a href="https://www.theguardian.com/australia-news/2020/apr/23/coalition-is-aiming-to-change-australias-environment-laws-before-review-is-finished">green tape</a>. This is not the key to faster project delivery. We have a decent system of development regulation, which attempts to balance the business interests of developers against the public good. The current crisis has illustrated very clearly the importance of the public values of <a href="https://theconversation.com/coronavirus-reminds-us-how-liveable-neighbourhoods-matter-for-our-well-being-135806">liveability</a>, <a href="https://theconversation.com/a-major-scorecard-gives-the-health-of-australias-environment-less-than-1-out-of-10-133444">preserving natural resources</a> and <a href="https://theconversation.com/physical-distancing-is-here-for-a-while-over-100-experts-call-for-more-safe-walking-and-cycling-space-137374">easy access to open space and local centres</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/physical-distancing-is-here-for-a-while-over-100-experts-call-for-more-safe-walking-and-cycling-space-137374">Physical distancing is here for a while – over 100 experts call for more safe walking and cycling space</a>
</strong>
</em>
</p>
<hr>
<p>We must hold all our infrastructure projects to higher standards. Robust planning and <a href="https://theconversation.com/cutting-green-tape-may-be-good-politicking-but-its-bad-policy-here-are-5-examples-of-regulation-failure-137164">environmental regulation are crucial</a> to maximise the public benefit of projects. Effective <a href="https://theconversation.com/sidelining-citizens-when-deciding-on-transport-projects-is-asking-for-trouble-92840">community engagement ultimately leads to smoother implementation</a> and better outcomes. Projects that work within planning regulations <a href="https://www.thefifthestate.com.au/urbanism/planning/fast-tracking-development-in-nsw-genuine-reform-or-rent-seeker-give-away/?ct=t%2821+april+2020%29">move more swiftly into implementation</a> than projects that try to bypass them. </p>
<p>In this pandemic crisis we have seen governments move fast and effectively to change policy and implement large-scale programs to benefit the community. The economic rebuilding forced on us by the pandemic is an opportunity to show the same agility to rethink our approach to infrastructure as an engine to uplift our communities and improve life for all citizens.</p><img src="https://counter.theconversation.com/content/136838/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Elizabeth Mossop is a founding director of Spackman Mossop Michaels landscape architects in Australia and the USA. </span></em></p>Smaller projects are better for delivering broad, long-term value to communities across the country, reducing inequality and cutting emissions, as well as quickly providing jobs and economic stimulus.Elizabeth Mossop, Dean of Design, Architecture and Building, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1368342020-04-28T02:09:14Z2020-04-28T02:09:14ZLook beyond a silver bullet train for stimulus<p>Amidst a global pandemic, some people are starting to dream big about infrastructure projects to help get Australia moving again. The decades-old dream of an Australian fast train is <a href="https://amp.smh.com.au/politics/federal/labor-backs-economic-game-changer-high-speed-rail-as-part-of-pandemic-recovery-20200418-p54l24.html">back in the headlines</a>. But, as alluring as it sounds, the federal opposition’s idea for a bullet train from Melbourne to Brisbane is not a good use of a generation’s worth of infrastructure spending.</p>
<p>After the coronavirus crisis, there may be good reasons to fast-track infrastructure to create jobs and stimulate the economy. But it remains as important as ever that funding go only to worthy projects. A bullet train does not fit the bill.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
</strong>
</em>
</p>
<hr>
<h2>No silver bullet</h2>
<p>Federal Labor <a href="https://www.smh.com.au/politics/federal/labor-backs-economic-game-changer-high-speed-rail-as-part-of-pandemic-recovery-20200418-p54l24.html">claims</a> the train would be an “economic game-changer” for the regions in its path. But a <a href="https://www.infrastructure.gov.au/rail/publications/high-speed-rail-study-reports/files/HSR_Phase_2-Main_Report_Low_Res.pdf">study</a> into the train, commissioned by Labor itself in government in 2010, found no evidence for this.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1251667149594091520"}"></div></p>
<p>Any regional development was too uncertain, the authors concluded, to be considered in their cost-benefit analysis. In fact, they found the project could damage towns along the route:</p>
<blockquote>
<p>The history of the impact of transport improvement in Australian towns is that they concentrate activity in the larger centres and create commuter towns lacking in higher level services. Without concerted efforts to the contrary, this is also a likely outcome of the introduction of HSR [high-speed rail].</p>
</blockquote>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/regional-cities-beware-fast-rail-might-lead-to-disadvantaged-dormitories-not-booming-economies-119090">Regional cities beware – fast rail might lead to disadvantaged dormitories, not booming economies</a>
</strong>
</em>
</p>
<hr>
<p>Of course, as advocates will be quick to point out, the study did conclude total benefits would outweigh costs by a considerable margin: $2.30 in benefit for every $1 of cost. But this rosy calculation was based on a series of assumptions that are either outdated or inappropriate. As our upcoming report on fast rail will explain in more detail, it’s unlikely the train’s benefits would exceed its costs if a rigorous independent assessment were carried out today.</p>
<p>The benefits are also narrowly concentrated. The biggest winners would be business travellers between Melbourne, Sydney and Brisbane. Wider benefits to society accounted for only 3% of the total, and the effect on economic growth was expected to be minimal.</p>
<p>That’s because the train would take a very long time to build. According to the study, the project would only be “shovel ready” 15 years after funding was committed. This makes it completely ineffective as a timely stimulus during a downturn.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/we-can-halve-train-travel-times-between-our-cities-by-moving-to-faster-rail-116512">We can halve train travel times between our cities by moving to faster rail</a>
</strong>
</em>
</p>
<hr>
<p>Advocates also argue the train would reduce emissions by taking high-emitting planes out of the sky. But a net reduction won’t be achieved for many years – maybe decades – because constructing the line would create so many emissions.</p>
<p>If built, this train would be the most expensive infrastructure project in Australian history. The study estimated the price tag at A$114 billion – A$130 billion in today’s dollars. As our chart shows, this is enough to pay for an entire generation’s worth of infrastructure.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=305&fit=crop&dpr=1 600w, https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=305&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=305&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=383&fit=crop&dpr=1 754w, https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=383&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=383&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Projects are not presented as an alternative to the train but provide a point of reference for the scale of spending required for the high-speed rail project. Projects in yellow have active government funding commitments. Figures indicate total project funding costs, including private contributions. Figure for the fast train is in 2019 dollars.</span>
<span class="attribution"><span class="source">Source: Based on most recent figures from Department of Infrastructure, Transport, Regional Development and Communications, Infrastructure Australia, NSW, Victorian and Queensland governments, Brisbane City Council, AECOM, ABS</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=626&fit=crop&dpr=1 600w, https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=626&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=626&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=787&fit=crop&dpr=1 754w, https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=787&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=787&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<h2>So what should be done?</h2>
<p>It is true current low interest rates would make borrowing to pay for such a large project cheaper than ever before, and fast-tracking infrastructure may be justified to aid economic recovery. But that doesn’t give governments a blank cheque to spend on whatever they like. The crisis does not absolve government of its responsibility to scrutinise projects to decide whether they are worthwhile.</p>
<p>A good place to start is by identifying the problem you want to solve.</p>
<p>If regional development is the goal, other options are available to governments that are more likely to be effective than a bullet train. <a href="https://www.infrastructurevictoria.com.au/wp-content/uploads/2019/03/IV_30_Year_Strategy_WEB_V2.pdf">Infrastructure Victoria</a> and <a href="https://insw-sis.visualise.today/documents/INSW_2018SIS_BuildingMomentum_Summary.pdf">Infrastructure NSW</a> both identify better digital connectivity as a pressing need for regional and rural areas. The <a href="https://www.smh.com.au/politics/federal/nbn-urged-to-intervene-as-pandemic-tests-broadband-connections-20200316-p54ain.html">current strain</a> on the national broadband network as many of us try to work from home is a good reminder of the link between connectivity and productivity.</p>
<p>If governments do want to focus on transport, “smaller picture” projects, though not as glamorous, tend to deliver more bang for buck, as <a href="https://grattan.edu.au/report/remarkably-adaptive/">previous Grattan work</a> has argued.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/our-fast-growing-cities-and-their-people-are-proving-to-be-remarkably-adaptable-103992">Our fast-growing cities and their people are proving to be remarkably adaptable</a>
</strong>
</em>
</p>
<hr>
<p>Projects that can be fast-tracked to start construction soon are also more likely to support economic recovery. Infrastructure Australia’s <a href="https://www.infrastructureaustralia.gov.au/sites/default/files/2020-02/current_priority_list_%20february_2020.pdf">priority list</a> suggests a range of transport projects and initiatives that are much further developed, including improving the Sydney-Canberra rail link. And the priority list includes projects that benefit all states and territories, not just the big three on the east coast.</p>
<p>The coronavirus crisis has upended many of our assumptions about “normal operating procedure” for governments. But it doesn’t mean we throw the old rule book out the window. Governments should only spend public money on projects that have clear and tangible benefits to society – not on grand “nation-building” projects that are big on style but low on substance.</p><img src="https://counter.theconversation.com/content/136834/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and Grattan uses the income to pursue its activities.</span></em></p>The federal opposition’s idea for a bullet train from Melbourne to Brisbane is not a good use of a generation’s worth of infrastructure spending. It won’t even work as an economic stimulus.Marion Terrill, Transport and Cities Program Director, Grattan InstituteTom Crowley, Associate, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1370692020-04-24T03:32:56Z2020-04-24T03:32:56ZThe need to house everyone has never been clearer. Here’s a 2-step strategy to get it done<p>The COVID-19 pandemic has shown us our health is intimately connected to the health of the person next to us, and that everyone needs shelter. It has created unprecedented urgency about moving people who are homeless into emergency accommodation – for their health and ours. So what happens next?</p>
<p>Getting people into hotel and motel rooms and off the streets is a good thing, but these are stopgap measures. They don’t provide a home.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385">6 steps towards remaking the homelessness system so it works for young people</a>
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</em>
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<hr>
<p>The rush to shelter people before the peak of the virus has been driven by a pressing need to protect us all. As the only seven-day-a-week mobile outreach service still operating in Victoria, <a href="https://www.launchhousing.org.au/">Launch Housing</a> has temporarily housed 800 people, half of whom were sleeping rough. So what will happen to them and the thousands of other Australians in emergency accommodation when social-distancing restrictions ease and our world returns to something resembling normal? </p>
<p>Will they exit back into street homelessness to become the face of fear and stigma, while the rest of the community returns to more social activities? </p>
<h2>A way to find homes right now</h2>
<p>Australia has a significant but solvable homelessness problem, so let’s start solving it right now.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=1046&fit=crop&dpr=1 600w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=1046&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=1046&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1314&fit=crop&dpr=1 754w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1314&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1314&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><span class="source">Image: AAP</span>, <span class="license">Author provided</span></span>
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<p>To avoid people being deposited back onto the streets, we’re asking state and territory governments to fund a rapid spot-purchasing program. The Victorian government has done it before on a smaller scale in 2016, and it worked. It’s time to do it again, but on a bigger scale and around the country.</p>
<p>The spot-purchasing program would fund community housing agencies to enter the property market to buy up “distressed” or cheap housing assets. These properties would be let at below market rent to people who pay 30% of their income as a social rent.</p>
<p>Vendors and developers would get <a href="https://www.domain.com.au/news/price-cuts-on-the-rise-as-vendors-rush-to-sell-in-coronavirus-pandemic-950402/?utm_campaign=strap-masthead&utm_source=the-age&utm_medium=link&utm_content=pos5&ref=pos1">much-needed sales</a> and thousands of people would get a home. Taxpayers would get an enduring social benefit for years to come, as expensive nightly motel bills – without any long-term benefit – get converted to community-owned property assets. </p>
<p>We estimate the program would cost about A$210 million in Victoria and a similar amount in other states. It <a href="https://theconversation.com/supportive-housing-is-cheaper-than-chronic-homelessness-67539">costs more to treat street homelessness than it does to fix it</a>. So, it makes economic and social sense to put the fix in now. </p>
<p>This is our mirror moment. We simply can’t afford to drop people when no one is looking and attention turns elsewhere. </p>
<p>People in emergency accommodation can’t wait years for new housing to be built. They (and we) need those homes now while longer-term solutions are developed.</p>
<h2>Meeting rising needs in the longer term</h2>
<p>Many people who are not homeless have lost jobs or had their work hours cut, and are facing their first-ever brush with housing insecurity. They are struggling, paying more than 30% of their income for housing.</p>
<p>There was a housing crisis before this latest upheaval, and these conditions haven’t changed. Rents were too high and there <a href="https://theconversation.com/australias-housing-system-needs-a-big-shake-up-heres-how-we-can-crack-this-130291">weren’t enough affordable homes</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216">Growing numbers of renters are trapped for years in homes they can't afford</a>
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<p>The health and economic fallout from COVID-19 has exposed the urgent need for more homes that are cheaper to rent for people on moderate, low or no incomes.</p>
<p>Crucially, we are also calling for the Australian government to fast-track the building of more social and affordable housing as part of an economic stimulus package.</p>
<p>A national social housing stimulus package will help get people back to work, speed the recovery, give the building industry the confidence to retain more workers and put roofs over people’s heads.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
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<hr>
<p>Initiatives to fund the construction of new social housing could be rolled out quickly. The industry capacity is there to do it, in partnership with the community housing sector.</p>
<p>The early stages of the stimulus would bring forward maintenance and new construction projects that are already on the drawing board.</p>
<p>By targeting locations with transport and facilities but <a href="https://theconversation.com/coronavirus-puts-casual-workers-at-risk-of-homelessness-unless-they-get-more-support-133782">high levels of rental stress</a>, new social housing buildings can be built quickly and integrated well into local communities.</p>
<p>The stimulus should be designed to encourage new mixed housing models, including properties that are “<a href="https://theconversation.com/build-to-rent-could-shake-up-real-estate-but-wont-take-off-without-major-tax-changes-119603">built to rent</a>”.</p>
<p>It would increase the supply of social housing for households that are homeless, or at risk of becoming so, and would stimulate the building, maintenance and construction industry.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097">Australia's social housing policy needs stronger leadership and an investment overhaul</a>
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<h2>A building-led recovery</h2>
<p>The program would build on the <a href="http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf">Social Housing Initiative</a> that was launched in response to the 2008 Global Financial Crisis. Some 20,000 new social housing units were built throughout Australia. </p>
<p>This time, we think it is possible to deliver 30,000 new units. Community housing organisations could raise extra private finance to build another 5,000 homes.</p>
<p>We’ll need this <a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">social infrastructure</a> more than ever after the pandemic. <a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216">Rental stress</a> and <a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385">homelessness</a> are increasing and the <a href="https://www.anglicare.asn.au/research-advocacy/the-rental-affordability-snapshot">lack of low-price rental housing</a> are issues we can no longer ignore.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
</strong>
</em>
</p>
<hr>
<p>The pandemic has created some very real challenges, but it also creates some unique opportunities to accelerate progress on ending homelessness, to recognise our interconnectedness and to give people the best possible protection of all – a home.</p>
<hr>
<p><em>This article was co-authored by Bevan Warner, CEO of Launch Housing.</em></p><img src="https://counter.theconversation.com/content/137069/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ron Wakefield is a board member of Launch Housing and non-executive chair of Tract. </span></em></p>Now is the time for a two-pronged strategy to ensure everyone has a home: a spot-purchasing program to find homes for people now in emergency accommodation, followed by social housing construction.Ron Wakefield, Professor of Construction, Deputy Pro-Vice Chancellor, International, and Dean, School of Property, Construction and Project Management, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1365192020-04-23T20:03:09Z2020-04-23T20:03:09ZWhy the focus of stimulus plans has to be construction that puts social housing first<p>Australia has <a href="https://theconversation.com/coronavirus-debate-turns-to-whether-australia-should-embrace-elimination-strategy-136186">done better with COVID-19</a> than anyone dared hope. This opens up the prospect of a progressive relaxation of restrictions later this year. Organisations that could participate in an economic stimulus program will need to be in a position then to deliver “shovel-ready” projects to help revive the economy.</p>
<p>The construction sector is the obvious focus of a stimulus plan, and the construction of social housing should be the priority, for reasons that I’ll outline below. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
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</em>
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<p>The Rudd government’s <a href="https://theconversation.com/vital-signs-the-gfc-and-me-ten-years-on-what-have-we-learned-103514">stimulus package during the Global Financial Crisis</a> gives us a helpful guide to what does and doesn’t work. The initiatives that failed did so because of a lack of proper planning. </p>
<p>Fortunately, if we get going now, we have months to plan the recovery program. Getting it right will be crucial. By September, one month before <a href="https://www.ato.gov.au/general/JobKeeper-Payment/">JobKeeper</a> payments end, many businesses are <a href="https://theconversation.com/new-oecd-estimates-suggest-a-22-hit-to-australias-economy-135026">going to be on their knees</a>. </p>
<h2>Why construction?</h2>
<p>Most of the successful elements of the Rudd package focused on construction. The reason is simple. Nearly <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1718/Quick_Guides/EmployIndustry">one in ten Australians</a> work in the construction industry. Many more are employed locally in the production of building products. </p>
<p>Both construction and building product manufacturing provide jobs for people with varying levels of skill, including people who are unskilled. The vast majority of concrete and steel reinforcement, bricks, wall framing, building boards, windows and doors, roof tiles and metal cladding are still made here. A substantial portion of domestic electrical and plumbing products, including stainless steel sinks, copper pipes and electrical cables are also made here.</p>
<p>It’s important to realise that the type of building being constructed will affect its local stimulatory impact. For buildings up to three storeys high, over 50% of their cost is labour on site. Of the remaining cost, the vast majority is Australian-made materials and components. (Although the Australian Bureau of Statistics stopped its series on Australian-made construction products in 2014, the employment impact can still be estimated from <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/8155.02017-18?OpenDocument">ABS manufacturing statistics</a>.)</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/329988/original/file-20200423-47815-af48fv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">For typical single and double-storey housing, more than half the cost goes into labour and locally made materials account for most of the rest of it.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/new-suburban-homes-currently-under-construction-261423332">Shutterstock</a></span>
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<p>However, the taller a building gets, the greater the percentage of imported components – lifts, mechanical components and facade systems are mostly imported. </p>
<h2>Why social housing?</h2>
<p>What sort of construction projects should the government consider for a stimulus package? While the response so far has been to focus on “<a href="https://www.smh.com.au/politics/federal/scott-morrison-flags-company-tax-cuts-ir-reform-as-key-to-covid-19-economic-recovery-20200417-p54kvq.html">fast-tracking” infrastructure</a>, the current crisis has highlighted a number of pressing social needs. Various aspects of social housing top the list: </p>
<ol>
<li><p>Housing to reduce the number of people living in <a href="https://theconversation.com/the-insecurity-of-private-renters-how-do-they-manage-it-77324">precarious private rentals</a>. A substantial program to increase the stock of social housing would be a great legacy. </p></li>
<li><p>Housing for people who are homeless. They will not be able to go on <a href="https://www.abc.net.au/news/2020-04-02/sa-hotels-policy-shows-homelessness-not-intractable/12113682">living in hotels</a> once the lockdown ends. </p></li>
<li><p>Affordable housing for workers in health, emergency services, education and retail who cannot afford to live close to the communities they provide vital support to. It turns out they are essential workers, some of the most important people in Australia, so we need to look after them. </p></li>
</ol>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/key-workers-like-nurses-and-teachers-are-being-squeezed-out-of-sydney-this-is-what-we-can-do-about-it-91476">Key workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it</a>
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</p>
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<p>Housing construction is a very effective way to create jobs, both directly and downstream. <a href="https://www.rba.gov.au/speeches/2019/sp-dg-2019-10-17.html">About 6% of Australian jobs</a> are related to housing.</p>
<h2>What other construction work is needed?</h2>
<p>There are other opportunities for well-targeted construction stimulus. </p>
<p>In many areas of Australia, public schools and kindergartens still rely on low-quality portable buildings or buildings that have exceeded their economic life. A program to replace them with new and efficient buildings would produce substantial social benefits, cut maintenance costs and improve sustainability. </p>
<p>Improving the deteriorated state of community buildings and parks, particularly in disadvantaged areas, would also deliver social benefits and potentially employ a lot of unskilled labour. Having decent parks and exercise facilities close to where people live will allow social distancing to continue as long as needed. </p>
<p>A Victorian government <a href="https://www.abc.net.au/news/2019-07-16/flammable-cladding-removal-fund-victorian-government/11311518">plan to remove combustible cladding</a> from residential and community buildings could also be extended to all states. It’s essential work that would also create jobs.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/flammable-cladding-costs-could-approach-billions-for-building-owners-if-authorities-dither-118121">Flammable cladding costs could approach billions for building owners if authorities dither</a>
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<hr>
<p>The government could also consider a program to replace or refurbish university teaching and research buildings that are over 40 years old. Incredibly, as we have found at ARINA in our consultancy work, these older buildings still provide more than half of the 11.8 million square metres of gross floor space occupied by the higher education sector. </p>
<p>These ageing buildings are not well suited to supporting the research into solutions to SARS-CoV-2 and other pressing medical and economic problems. Replacing or refurbishing them would improve outputs, cut maintenance costs and improve sustainability, plus give a much-needed boost to the higher education sector. </p>
<h2>Plan now to be shovel-ready</h2>
<p>Anglicare SA is already thinking of what it can do to deliver more social housing. Its CEO, Peter Sandeman, told me he is making sure Anglicare has “shovel-ready projects that can be rolled out the moment a stimulus package is announced. There is no better way of stimulating the economy than by constructing social housing.”</p>
<p>This is stimulus that also meets critical social needs, Sandeman says.</p>
<blockquote>
<p>There is a desperate shortage of social housing. Our waiting list and the number of people who are homeless demonstrates that. </p>
<p>Social housing provides a long-term benefit to everyone. It adds stability to the lives of the occupants and this is a particular benefit to their children and their education. Safe, affordable housing is the foundation stone that gives people a chance in life.</p>
</blockquote>
<p>Other organisations that could be part of the stimulus package should be getting ready, too, and making sure the government knows what they are doing. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-housing-system-needs-a-big-shake-up-heres-how-we-can-crack-this-130291">Australia's housing system needs a big shake-up: here's how we can crack this</a>
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</p>
<hr>
<img src="https://counter.theconversation.com/content/136519/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Geoff Hanmer is a Director of ARINA, an architectural consultancy. He has received funding from the NSW BACC. </span></em></p>Construction employs one in ten Australians, with a broad range of skills, using mostly locally made materials. Building social housing would meet urgent social needs as well as creating jobs.Geoff Hanmer, Adjunct Professor of Architecture, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1359092020-04-20T16:04:28Z2020-04-20T16:04:28ZCoronavirus: how economic rescue plans can set the global economy on a path to decarbonisation<figure><img src="https://images.theconversation.com/files/329125/original/file-20200420-152571-e224hd.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C7000%2C3937&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/solar-panels-city-china-709295557">Fuyu Liu/Shutterstock</a></span></figcaption></figure><p>As states contemplate how to <a href="https://theconversation.com/how-economies-can-survive-a-period-of-suspended-animation-to-deal-with-coronavirus-134846">restart</a> the global economy after the pandemic, it’s important to remember that we’ve been here before. The global financial crisis of 2008 didn’t cause as much social and economic harm as COVID-19 has, but it did force governments around the world to intervene in the economy, to limit the fallout from the crash.</p>
<p>Vital though these interventions are, states need to consider what a post-pandemic economy looks like. If handled correctly, it could be a once-in-a-lifetime opportunity to create a system that’s fundamentally fairer and more sustainable.</p>
<p>That would mean ensuring that climate action is <a href="https://www.iea.org/commentaries/put-clean-energy-at-the-heart-of-stimulus-plans-to-counter-the-coronavirus-crisis">baked in</a> to stimulus packages and bailouts. There were similar ideas floated in the wake of the 2008 crash, but they only amounted to investments in green energy and infrastructure of around <a href="https://www.ilo.org/wcmsp5/groups/public/---dgreports/---inst/documents/publication/wcms_194185.pdf">16% of total fiscal stimulus spending</a>. </p>
<p>Given <a href="https://theconversation.com/the-age-of-stability-is-over-and-coronavirus-is-just-the-beginning-136380">the mounting urgency of the climate crisis</a>, a post-pandemic recovery programme would need to be much more ambitious, ensuring a planned retreat from fossil fuels that reallocates employment into secure and socially useful work, while also making the global economy and supply chains more resilient to inevitable future shocks.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-age-of-stability-is-over-and-coronavirus-is-just-the-beginning-136380">The age of stability is over, and coronavirus is just the beginning</a>
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</em>
</p>
<hr>
<h2>A post-COVID green new deal</h2>
<p>Before COVID-19, momentum around the world had been building for “<a href="https://theconversation.com/labours-green-new-deal-is-among-the-most-radical-in-the-world-but-can-it-be-done-by-2030-123982">a green new deal</a>” – a programme of state-led investment to rapidly reduce emissions and economic inequality by creating green infrastructure and jobs.</p>
<p>Amid the recent turmoil, investors are looking for safe assets. Governments could finance a green overhaul of the economy by encouraging them to invest in low carbon infrastructure through “green bonds”. These could be issued directly by central governments, or through national or regional green investment banks. That investment could help transform the electricity system to integrate renewable energy generation, roll out charging points for electric vehicles, and build cycle networks and low-carbon housing. </p>
<p>With the nine-to-five rhythm of the weekday grinding to a halt, the lockdown has affected <a href="https://theconversation.com/we-analysed-electricity-demand-and-found-coronavirus-has-turned-weekdays-into-weekends-134606">profound changes in energy demand</a>. While the UK approaches its record for the number of <a href="https://twitter.com/UK_Coal/status/1252220997614387202">days without generating energy from coal</a>, now is a good time to restructure national electricity grids away from a centralised model, with fossil fuel power plants radiating energy outwards, to a model where energy generation is distributed among many sources of solar and wind, like rooftop photovoltaic panels and community-owned wind farms. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=410&fit=crop&dpr=1 600w, https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=410&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=410&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=515&fit=crop&dpr=1 754w, https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=515&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/329119/original/file-20200420-152567-13ndrrn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=515&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The pandemic could profoundly reshape global energy supply.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/GrmwVnVSSdU">Zbynek Burival/Unsplash</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
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<p>The fossil fuel industry was <a href="https://www.theguardian.com/environment/2020/apr/01/the-fossil-fuel-industry-is-broken-will-a-cleaner-climate-be-the-result">already struggling</a> before <a href="https://www.wsj.com/articles/thirst-for-oil-vanishes-leaving-industry-in-chaos-11586873801">nationwide lockdowns caused a crash in consumer demand</a>. States should end <a href="https://theconversation.com/fossil-fuel-subsidies-reach-us-87-billion-in-eu-countries-and-theyre-growing-123733">the subsidies propping up the industry</a> and re-allocate that money to research and development funding for battery storage technologies and clean energy. Given how weak the sector is – with oil prices <a href="https://twitter.com/HeerJeet/status/1252049461150314496">plumbing new lows each day</a> – states could buy oil and gas companies out and take their reserves into public ownership, effectively keeping those fuels in the ground. Displaced workers could be compensated and retrained, which has happened <a href="https://www.energy-reporters.com/environment/spain-stops-using-its-coal-to-generate-power/">in the Spanish coal industry</a>. </p>
<p>The pandemic has also exposed the fragility of the <a href="https://theconversation.com/coronavirus-rationing-based-on-health-equity-and-decency-now-needed-food-system-expert-133805">UK’s food supply</a>, with its limited storage capacity, <a href="https://theconversation.com/supply-chains-expert-dont-panic-if-you-see-empty-shelves-more-stock-is-on-its-way-134615">a just-in-time supply model</a>, and dependence on imported food. Suddenly we’ve realised the social and environmental absurdity of flying and driving much of our food from big producers far away.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/we-simulated-how-a-modern-dust-bowl-would-impact-global-food-supplies-and-the-result-is-devastating-133662">We simulated how a modern dust bowl would impact global food supplies and the result is devastating</a>
</strong>
</em>
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<p>Many people have taken the initiative during this crisis to <a href="https://www.independent.co.uk/life-style/coronavirus-how-to-help-local-small-business-order-online-a9418861.html">support small businesses</a> and <a href="https://www.eveningexpress.co.uk/fp/news/local/coronavirus-north-east-business-leader-hopes-shopping-local-becomes-new-norm/">buy food from local suppliers</a>. Economic stimulus measures could build on this by ensuring large public sector organisations that are anchored within communities, such as councils, colleges or hospitals, source their food from local producers. <a href="https://theconversation.com/preston-changed-its-fortunes-with-corbynomics-now-other-cities-are-doing-the-same-106293">The Preston model</a> of “re-localising” economic activity shows how it might be done.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=405&fit=crop&dpr=1 600w, https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=405&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=405&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=509&fit=crop&dpr=1 754w, https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=509&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/329115/original/file-20200420-152571-64vsh0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=509&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Encouraging local food supply chains could reduce greenhouse gas emissions and rejuvenate small businesses.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/people-buying-fresh-local-vegetable-farm-604302473">Rawpixel.com/Shutterstock</a></span>
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<p>While many people are stuck in their houses, thoughts have inevitably turned to home improvement. It wouldn’t cost a great deal for governments to roll out <a href="https://theconversation.com/labours-low-carbon-warm-homes-for-all-could-revolutionise-social-housing-experts-126329">a mass home insulation effort</a> after the crisis, targeting households which are struggling most with fuel poverty first. This would pay for itself in energy savings, and warmer homes would improve the health and well-being of many, while also creating green jobs that can’t be outsourced.</p>
<p>Despite the numerous declarations of “climate and ecological emergencies” in 2019, the pandemic of 2020 has shown what a global emergency looks like in real time – and how public resources can be leveraged to rapidly deal with it. While green investment and climate action were afterthoughts in post-2008 economic recovery programmes, they must be the guiding principle behind rebuilding the economy after the pandemic.</p>
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<img alt="" src="https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=446&fit=crop&dpr=1 600w, https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=446&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=446&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=560&fit=crop&dpr=1 754w, https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=560&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/290123/original/file-20190829-106524-1w6rzla.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=560&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p><strong><em>This article is part of <a href="https://www.cjr.org/covering_climate_now/covering-climate-partnerships.php/">The Covering Climate Now</a> series</em></strong>
<br><em>This is a concerted effort among news organisations to put the climate crisis at the forefront of our coverage. This article is published under a Creative Commons license and can be reproduced for free – just hit the “Republish this article” button on the page to copy the full HTML coding. The Conversation also runs Imagine, a newsletter in which academics explore how the world can rise to the challenge of climate change. <a href="https://theconversation.com/imagine-newsletter-researchers-think-of-a-world-with-climate-action-113443?utm_source=TCUK&utm_medium=linkback&utm_campaign=TCUKengagement&utm_content=CoveringClimateNow">Sign up here</a></em>.</p>
<hr><img src="https://counter.theconversation.com/content/135909/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Barry receives funding from the Economic and Social Research Council and is a former Green Party councillor. </span></em></p>An economic downturn as severe as the great depression is possible, but what should emerge out of it?John Barry, Professor of Green Political Economy, Queen's University BelfastLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1360542020-04-09T07:54:01Z2020-04-09T07:54:01ZVIDEO: Michelle Grattan on Australia’s exit out of coronavirus restrictions<p>Michelle Grattan talks with Assistant Professor Caroline Fisher (remotely) about the week in politics, including the week in parliament, the government’s coronavirus policy, and the wider effects of the crisis.</p>
<p><em>Please note that the reference to the senate inquiry report date of June 30, should have been June 30, 2022.</em></p>
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<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Michelle Grattan talks about the week in politics, including the parliament’s action and analysis of the coronavirus crisis.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1352962020-04-06T04:12:07Z2020-04-06T04:12:07ZCoronavirus support packages will reshape the future economy, and that presents an opportunity<figure><img src="https://images.theconversation.com/files/324490/original/file-20200401-66115-i6rn68.jpg?ixlib=rb-1.1.0&rect=20%2C123%2C4544%2C3298&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Governments across the world have rolled out extensive financial packages to support individuals, businesses and large corporations affected by the COVID-19 pandemic. </p>
<p>Equally, central banks have decreased their lending rates to almost zero, and have announced <a href="https://www.bis.org/press/p200320.htm">extensive and previously untested direct lending</a> to private corporations and financial companies. </p>
<p>In many wealthy countries, the support packages are <a href="https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19">record-breaking in their size and scope</a>, such as the <a href="https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html">US$2.2 trillion stimulus package for the US economy</a>. </p>
<p>The US and Australian stimulus packages each represent about 10% of GDP. New Zealand’s program is about 5% of GDP, but each country is experiencing the economic shock differently, has different existing safety nets and priorities, and different mechanisms to deliver this assistance.</p>
<p>These support packages will play a significant role in shaping our world for many years, and we should not allow the clear emergency of the situation to stop us questioning their design. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/new-zealand-outstrips-australia-uk-and-us-with-12-billion-coronavirus-package-for-business-and-people-in-isolation-133789">New Zealand outstrips Australia, UK and US with $12 billion coronavirus package for business and people in isolation</a>
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<h2>Goals for financial support</h2>
<p>Our work on economic recovery following natural hazards and disasters defines a set of <a href="https://www.adb.org/publications/build-back-better">build-back-better goals</a>, and how they should be assessed. </p>
<p>This kind of thinking applies equally to our current predicament. We argue that globally, the purpose of COVID-19 stimulus packages should be threefold, and we should assess them against these three goals:</p>
<ol>
<li><p>make sure people’s basic needs are satisfied</p></li>
<li><p>make it possible for the economy to spring back into action once the necessary social distancing measures are relaxed</p></li>
<li><p>use these funds to create positive change, and rebuild areas we previously neglected (in many countries, this will mean investing in public health systems). </p></li>
</ol>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/five-principles-to-follow-if-your-job-is-to-lead-your-staff-through-the-coronavirus-crisis-134642">Five principles to follow if your job is to lead your staff through the coronavirus crisis</a>
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<p>To achieve the first goal of making sure people can meet their basic needs, many high-income countries - including the US, Greece, the UK and France - are either providing direct payments to all citizens (<a href="https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html">as in the US</a>) or targeted support to those who lost income or jobs. </p>
<p>These payments are sometimes a fixed proportion of each recipient’s previous income, up to a cap (<a href="https://www.theguardian.com/uk-news/2020/mar/20/government-pay-wages-jobs-coronavirus-rishi-sunak">as in the UK</a>), or are identical for everyone who has lost income (<a href="https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/wage-subsidy/">as in New Zealand</a>). </p>
<p>From an economic perspective, it is clearly more efficient to provide support only to the people who really need it - those who have lost income and would not be able to support themselves and their dependants. </p>
<p>But these programs are also shaped by politics and ethics, and different countries chose different ways to distribute this assistance, not always based on need.</p>
<h2>Restarting economies</h2>
<p>Even better are programs that provide the wage subsidies through existing employers, such as Germany’s famed <a href="https://www.bloomberg.com/news/articles/2020-03-30/germany-pays-workers-to-stay-home-to-avoid-mass-layoffs">Kurzarbeit program</a> (which translates to “work with shorter hours”) which was implemented during the 2008 global financial crisis. </p>
<p>New Zealand’s <a href="https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/wage-subsidy/">wage subsidy package</a> is a similar program. It supports businesses to continue paying their staff even if they are unable to work. </p>
<p>Details of payments to businesses are posted online, to make sure employers comply and transfer these funds to their employees. This initiative was trialled after the 2011 Christchurch earthquake. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/three-reasons-why-jacinda-arderns-coronavirus-response-has-been-a-masterclass-in-crisis-leadership-135541">Three reasons why Jacinda Ardern's coronavirus response has been a masterclass in crisis leadership</a>
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</em>
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<p>A similar support was also implemented <a href="https://www.theguardian.com/world/2020/mar/30/australia-to-subsidise-wages-of-up-to-6m-workers-in-130bn-coronavirus-plan">in Australia</a>.</p>
<p>Generally, wage subsidies allow for continued employment of individuals who would otherwise be let go, and they will also assist in achieving the second goal of resuming economic activity once restrictions are relaxed. </p>
<p>Such programs have been shown to be effective in <a href="https://oecdobserver.org/news/archivestory.php/aid/3300/Keeping_Germany_at_work.html">Germany</a> and <a href="https://motu.nz/our-work/population-and-labour/individual-and-group-outcomes/labour-market-dynamics-following-a-regional-disaster/">New Zealand</a> in ameliorating unexpected shocks.</p>
<p>While employees need support, directly or indirectly, it is also important that small and medium-sized businesses are propped up so they are ready to forge ahead once it is possible to do so. They should receive grants and subsidised loans to pay their costs, other than wages. Otherwise many businesses will fail, and the recovery will be slow and hard. </p>
<h2>Global impacts</h2>
<p>Whether large corporations need to receive support depends partly on the longer-term importance of their sector. It is easier to justify support for national airlines, which are an important linchpin in many countries’ global ties, than to support fossil fuel producers, for example. </p>
<p>Nor are there many reasons why taxpayers (present and future) should bail out wealthy individual owners of large businesses, when these businesses could be restructured in bankruptcy proceedings that should not lead to their shutdown.</p>
<p>But the COVID-19 pandemic has impacts well beyond individual countries and their economies and may require global support mechanisms. </p>
<p>Most low- and middle-income countries have either not yet announced any assistance or their packages are less than 1% of GDP. They typically cannot afford more with their existing debt levels. </p>
<p>It is therefore incumbent on high-income countries that can afford larger fiscal support packages to <a href="https://blogs.imf.org/2020/03/25/in-it-together-protecting-the-health-of-africas-people-and-their-economies/?utm_medium=email&utm_source=govdelivery">help countries that cannot</a>. But so far only a handful of high-income countries, <a href="https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19?utm_medium=email&utm_source=govdelivery#N">including Finland and Norway</a>, have provided such support. </p>
<p>The international institutions supported by the rich world, such as the International Monetary Fund (<a href="https://www.imf.org/external/index.htm">IMF</a>) and the <a href="https://www.worldbank.org/">World Bank</a>, should pull out all the stops and lend enough, and at concessionary rates, to low-income countries so they can, at the very least, provide for their people’s basic needs. </p>
<p>Without that support, the virus will continue to spread in low-income countries and defeat the draconian social distancing measures that almost every country is implementing now. </p>
<p>Finally, it is important that we scrutinise these programs carefully now, rather than only once the public health emergency has passed and they have been entrenched. The sums involved are incredibly large and we will be remiss if we mis-spend what we are now borrowing from our children and grandchildren.</p>
<p><em>* Stay in touch with The Conversation’s coverage from New Zealand experts by signing up for <a href="https://theconversation.com/nz/newsletters/new-zealand-weekly-58?utm_campaign=System&utm_content=newsletter&utm_medium=TopBar&utm_source=theconversation.com">our weekly newsletter</a> – delivered to you each Wednesday morning.</em></p><img src="https://counter.theconversation.com/content/135296/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ilan Noy receives funding from the New Zealand government (through several research support mechanisms). </span></em></p>Many countries are spending record amounts to support people and businesses affected by COVID-19, but we need to scrutinise fiscal support because it’s money we’re borrowing from future generations.Ilan Noy, Professor and Chair in the Economics of Disasters, Te Herenga Waka — Victoria University of WellingtonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1350492020-03-30T07:12:23Z2020-03-30T07:12:23Z$1,500 a fortnight JobKeeper wage subsidy in massive $130 billion program<p>The Morrison government will provide a flat $1,500 a fortnight JobKeeper payment per employee for businesses to retain or rehire nearly six million workers, in a massive $130 billion six-month wage subsidy scheme to limit the economic devastation caused by the coronavirus.</p>
<p>Describing the initiative as “unprecedented action” for “unprecedented times”, Prime Minister Scott Morrison said this was a “uniquely Australian” solution to keep enterprises and their workers connected through to “the other side” of the crisis.</p>
<p>He said no Australian government had ever made such a decision “and I hope and pray they never have to again.” </p>
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<p>The payment, made through the tax system, applies for workers of large, medium and small enterprises, and not-for-profits. It will start flowing from May 1, but will be backdated to March 30. </p>
<p>It will be a flat rate for all those eligible, who include full-time, part-time, and casual workers (provided they have been with their employer for a year). Self-employed individuals will also be eligible. </p>
<p>The payment is about 70% of the national median wage. For workers in the accommodation, hospitality and retail sectors - sectors hardest hit by the crisis - it will equate to a full median replacement wage.</p>
<p>To be eligible, enterprises with an annual turnover of less than $1 billion must have lost at least 30% of their revenue after March 1, relative to a comparable period a year ago.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-key-to-the-success-of-jobkeeper-is-retrospective-paid-work-135042">The key to the success of JobKeeper is retrospective paid work</a>
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</em>
</p>
<hr>
<p>For businesses with turnovers of more than $1 billion the reduction in revenue has to be at least 50%.</p>
<p>Where workers have already lost their jobs, they can be rehired by their employer, provided they were attached to the enterprise on March 1. </p>
<p>This will mean some people who have applied for a Centrelink payment will reconnect with their firm and will move to the JobKeeper payment.</p>
<p>Morrison and Treasurer Josh Frydenberg announced the scheme at 4 pm and almost 8000 businesses had registered by 5 pm.</p>
<p>The $1,500 a fortnight will be paid whether the employee is working (in the case of an enterprise still operating) or not (if the business is not trading).</p>
<p>Businesses that keep operating will have to pay each employee at least the $1,500, but there may be discretion about what’s paid above that, depending on whether there is an award.</p>
<p>The $130 billion JobKeeper scheme is the third tranche of emergency assistance the government has unveiled since March 12.</p>
<p>“This is about keeping the connection between the employer and the employee and keeping people in their jobs even though the business they work for may go into hibernation and close down for six months,” Morrison said.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-130-billion-jobkeeper-payment-what-the-experts-think-135043">Australia's $130 billion JobKeeper payment: what the experts think</a>
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</em>
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<hr>
<p>“We will give millions of eligible businesses and their workers a lifeline to not only get through this crisis, but bounce back together on the other side,” he said. </p>
<p>The latest initiative brings the total support made available in the crisis to $320 billion, including $90 billion assistance from the Reserve Bank. The total amounts to the equivalent of 16.4% of GDP.</p>
<p>Frydenberg said Australia was “about to go through one of the toughest times in its history”. The government had doubled the welfare safety net and now had gone even further, he said. </p>
<p>Parliament - in a “mini” form - will sit to pass the package as soon as the legislation has been drafted.</p>
<p>Business welcomed the scheme. The Australian Chamber of Commerce and Industry said it was a “game changer”. </p>
<p>The Business Council of Australia said the government had “made the right choice to work through the systems we already have in place to get assistance where it is needed as soon as possible.” </p>
<p>But ACTU secretary, Sally McManus, expressed concern that $1,500 a fornight might not be enough. She said the full median wage of $1,375 a week “is what is needed”. </p>
<p>The government is also temporarily liberalising access to income support. The JobSeeker payment has been subject to a partner income test of about $48,000. This is being temporarily relaxed so an eligible person can receive the JobSeeker payment and the associated new Coronavirus supplement of $550 a fortnight provided their partner earns less than $79,762 a year </p>
<p>In other coronavirus developments on Monday, Victoria announced it had moved to “stage 3” of the response to the crisis, with the two-person restriction on gatherings to become legally enforceable.</p>
<p>The two-person rule was announced by Morrison on Sunday but it was left up to the states to decide whether to make it enforceable.</p>
<p>Victorian Premier Daniel Andrews said: “If you are having friends over for dinner or friends over for drinks that are not members of your household, then you are breaking the law”. </p>
<p>“You face an on-the-spot fine of more than $1,600.”</p>
<p>NSW is also announced it will enforce the rule. </p>
<p>Queensland, which has closed its border, is toughening border controls.</p>
<p>Federal Deputy Chief Medical Officer Paul Kelly flagged modelling the government is using in its response will be made available later this week. Morrison has faced pressure for the modelling’s release.</p>
<p>Kelly told a news conference he had asked his staff “to organise a meeting later this week where the modelling and the epidemiology and the public health response will be unlocked, and people will be able to ask questions about that.</p>
<p>"I think we have been quite open with components of the modelling, but I respect that there is a large number of ways that modelling can be done, and so we need to be more transparent, and we will be.”</p><img src="https://counter.theconversation.com/content/135049/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Morrison government will provide a flat $1,500 a fortnight JobKeeper payment for businesses to retain or rehire nearly six million workers, in a massive $130 billion wage subsidy scheme.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1349872020-03-28T11:31:38Z2020-03-28T11:31:38ZAll Australians will be able to access telehealth under new $1.1 billion coronavirus program<p>Scott Morrison will unveil on Sunday a $1.1 billion set of measures to make Medicare telehealth services generally available during the coronavirus pandemic and to support mental health, domestic violence and community services.</p>
<p>The “Medicare support at home” initiative will extend telehealth to the whole population. In the early stages of the pandemic, the government announced limited telehealth access.</p>
<p>The $669 million medical spending will also include extra incentives for doctors.</p>
<p>People will be able to get consultations from their homes via telephone or video conferencing for GP services, mental health treatment, chronic disease management, and a wide range of other services that do not require face-to-face contact</p>
<p>This will include after hours consultations and access to nurse practitioners.</p>
<p>The broad telehealth service limits the exposure of patients and health professionals to the coronavirus and will take pressure off hospitals and emergency departments, while supporting self-isolation and quarantine policies.</p>
<p>The GP bulk billing incentive is to be doubled for GPs, whether it is a telehealth consultation or not, and an incentive payment given to ensure practices stay open for face-to-face services where patients cannot be treated through telehealth.</p>
<p>The new arrangements will run until September 30, when they will be reviewed.</p>
<p>The government is spending an initial $74 million to help with the mental health impact of the virus crisis.</p>
<p>The government’s digital health portal, <a href="https://headtohealth.gov.au/">Head to Health</a>, will be a source of authoritative information on how to maintain good mental health during the pandemic and in self-isolation, and how to support children and others.</p>
<p>A national communications campaign will also provide guidance about mental wellbeing.</p>
<p>Money will go to bolstering the capacity of mental health support providers, who are experiencing an unprecedented surge in calls.</p>
<p>Health workers are to get dedicated mental health support. </p>
<p>To support people in aged care, who risk becoming socially isolated due to restrictions on visitors, funds will be provided to the Community Visitors Scheme, to train extra volunteers, who will connect with older people online and by telephone. </p>
<p>Funding will also go to assisting young people “stay on track” in their education and training, via the headspace digital work and study service and eheadspace.</p>
<p>For indigenous Australians, culturally appropriate mental health support will also receive funding.</p>
<p>An initial $150 million will go to supporting people experiencing domestic, family, and sexual violence due to the fallout from coronavirus. </p>
<p>Some $200 million will support charities and other community organisations that provide emergency and food relief as demand increases.</p>
<p>Vulnerable people will be helped with bills, food, clothing and other needs such as financial counselling through this community support package.</p>
<p>Scott Morrison said: “As we battle coronavirus on both the health and economic fronts with significant support packages in place and more to come, I am very aware many Australians are understandably anxious, stressed and fearful about the impacts of coronavirus and what it brings.</p>
<p>"This new support package will provide much needed care and help to so many Australians facing hardship”</p>
<p>Family and Social Services Minister Anne Ruston said given the unprecedented situation, emergency relief services would likely be relied on more heavily in coming months “than we have seen in our lifetimes.”</p>
<p>“Many people reaching out to these services may have never needed this type of assistance before,” she said.</p><img src="https://counter.theconversation.com/content/134987/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Scott Morrison will unveil a $1.1 billion package to make Medicare telehealth services available during the coronavirus pandemic and to support mental health, domestic violence and community services.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1343552020-03-22T05:09:04Z2020-03-22T05:09:04ZNSW and Victoria announce ‘shutdowns’, as federal government widens and ramps up income support<p>NSW and Victoria are shutting down non-essential services and activities over the next 48 hours, and the federal government has announced it will increase and widen eligibility for income support as the coronavirus crisis escalates.</p>
<p>Premier Gladys Berejiklian said the NSW shutdown would leave supermarkets, petrol stations, pharmacies, convenience stores, freight and logistics, and home deliveries among many services remaining open.</p>
<p>Schools would be open Monday but Berejiklian flagged she would have more to say about this on Monday morning.</p>
<p>Victorian premier Daniel Andrews announced a similar shutdown and is bringing forward school holidays to start <a href="https://www.premier.vic.gov.au/statement-from-the-premier-32/">Tuesday</a>, with a decision on whether schools will reopen to be taken on medical advice.</p>
<p>Andrews said the shutdown decision was not taken lightly but “it’s clear that if we don’t take this step, more Victorians will contract coronavirus, our hospitals will be overwhelmed and more Victorians will die”.</p>
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<p>Scott Morrison told Australians not to undertake unnecessary domestic travel, including in the coming school holidays.</p>
<p>“All non-essential travel should be cancelled,” he said bluntly at a Sunday news conference where he unveiled a $66.1 billion second federal package.</p>
<p>South Australia is closing its border from 4 pm Tuesday, establishing 12 border crossings, and requiring travellers to sign a declaration to self-isolate for a fortnight. </p>
<p>Western Australia also announced a closure with Premier Mark McGowan saying the controls “will apply to all access points, roads, air, rail and sea. Unless exempted, arrivals from interstate will be ordered to self isolate for 14 days”. “Western Australia is now in a war,” he said. </p>
<p>Tasmania and the Northern Territory have already acted on their borders.</p>
<p>The federal-state national cabinet’s meeting has been brought forward from Tuesday night to Sunday night, to discuss ever-toughening measures to handle the fast spread of the virus. But NSW and Victoria came out with their announcements ahead of that meeting.</p>
<p>The federal government’s <a href="https://treasury.gov.au/coronavirus">second economic package</a>, which has ten separate measures, will provide support for households - including those on income support, casual workers, sole traders, and retirees - and will also seek to prop up businesses with cash, loans and regulatory protection.</p>
<p>Among the measures, the government will temporarily widen eligibility for income support and give a new short term “<a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf">coronavirus supplement</a>” of $550 a fortnight. </p>
<p>The new supplement will go to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit. It available to sole traders and casual workers who meet the income test.</p>
<p>The supplement means a doubling of money received a single person with no dependants on a $565.70 a fortnight JobSeeker payment.</p>
<p>It will be paid for six months and people will receive the full $550 on top of their ordinary payment. The cost will be $14.1 billion and up to 5000 extra staff will be employed to help deliver it.</p>
<p>On wider eligibility, the government says Jobseeker Payment and Youth Allowance Jobseeker criteria “will provide payment access for permanent employees who are stood down or lose their employment; sole traders; the self-employed; casual workers; and contract workers who meet the income tests as a result of the economic downturn due to the Coronavirus. This could also include a person required to care for
someone who is affected by the Coronavirus.”</p>
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Read more:
<a href="https://theconversation.com/scalable-without-limit-how-the-government-plans-to-get-coronavirus-support-into-our-hands-quickly-134353">Scalable without limit: how the government plans to get coronavirus support into our hands quickly</a>
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<p>Among other measures are a <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf">second</a> one-off $750 payment to low income households and increased early access to superannuation, as the government attempts to cushion people and businesses in a collapsing economy, which will go into a further tailspin with the shutdowns.</p>
<p>Even before the previously-announced $750 payment – to go out at the end of this month - is dispatched, the government has decided on the second $750 payment, made from July 13.</p>
<p>It will go to those on social security and veteran income support and eligible concession card holders – except for those receiving an income support payment that is eligible for the “coronavirus supplement”.</p>
<p>About five million people will get this payment, half of them pensioners, at a cost of $4 billion.</p>
<p>The relaxation of superannuation arrangements will mean people in financial stress as a result of coronavirus will be able to access <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf">up to $10,000</a> of their super in each of this financial year and the next. This will cost $1.2 billion. Minimum drawdown requirements are also being reduced. </p>
<p>The deeming rate used to assess income from financial assets for the pension income test is being <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_support_for_retirees_to_manage_market_volatility.pdf">reduced</a> to reflect last week’s Reserve Bank interest rate cuts. This will benefit about 900,000 on income support and cost $876 million.</p>
<p>On the business side, the package also includes cash payments of up to <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf">$100,000</a> to small and medium-sized businesses and not-for-profit enterprises, with turnovers of less than $50 million, as well as a <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf">loan guarantee</a> scheme for SMEs.</p>
<p>Among regulatory protections will be changes to <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf">bankruptcy</a> rules. There will be a temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond.</p>
<p>The government’s aim in its business support is to keep as many enterprises as possible afloat, with as many workers as possible still linked to them, so they can restart operations and reassemble their workforces after the crisis has passed.</p>
<p>Finance Minister Mathias Cormann talked about businesses going into “hibernation”.</p>
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Read more:
<a href="https://theconversation.com/how-australias-response-to-the-spanish-flu-of-1919-sounds-warnings-on-dealing-with-coronavirus-134017">How Australia's response to the Spanish flu of 1919 sounds warnings on dealing with coronavirus</a>
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<p>Morrison said the government’s package focused on those “in the front line”, feeling “the first blows” of the economic impact of the virus. “We will be supercharging our safety net and supporting the most vulnerable to the impacts of the crisis, those who will feel those first blows.”</p>
<p>Federal and state governments are alarmed that many citizens are not taking warnings and advice seriously enough. After people swarmed to Bondi beach on Friday, a crackdown on numbers was imposed on Saturday.</p>
<p>Morrison was stern in his messaging, saying social distancing “is one of our most, if not our most, important weapon against the spread of the coronavirus”.</p>
<p>He said what had happened at Bondi “was not OK, and served as a message to federal and state leaders that too many Australians are not taking these issues seriously enough.</p>
<p>"So the measures that we will be considering tonight means that state premiers and chief ministers may have to take far more draconian measures to enforce social distancing, particularly in areas of outbreaks, than might otherwise be the case”.</p>
<p>He said what might be needed in a part of Sydney might not be necessary in rural NSW or Perth.</p>
<p>Parliament, with restricted numbers, meets on Monday to pass the stimulus legislation.</p>
<p>The AFL announced late Sunday it was suspending its season. It will review the situation at the end of May. It said it was facing the biggest financial crisis in its history.</p>
<p>As at 6.30am Sunday, there had been 1,098 COVID-19 cases in Australia, with 224 new cases since 6.30am Saturday.</p><img src="https://counter.theconversation.com/content/134355/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>NSW and Victoria are shutting down non-essential services and activities over the next 48 hours, and the federal government has announced it will widen eligibility and increase income support as the coronavirus crisis escalates.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.