Scott Morrison will take a proposal to Friday’s national cabinet to slow arrivals of Australians returning from overseas.
Morrison’s proposal followed this week’s request from Western Australian Premier Mark McGowan for a cap on international flights landing in Perth to relieve pressure on resources, and the earlier diversion of flights from landing in Melbourne because of the new outbreak.
There is already a cap applying to NSW, and the WA government has said the federal government has responded favourably to its representation. Queensland also wants limits.
The prime minister told a news conference his proposal would be to contain the flow rather than pause it. He said the numbers coming in were very low “but at this time, we don’t want to put any more pressure on the system than is absolutely necessary”.
New Zealand has moved to slow the flow of returnees.
Morrison also said the federal government would support state governments charging travellers returning from abroad for their quarantine.
It was up to the states but “if they wish to do that, then the Commonwealth would have no objection to that”.
“I think that would be a completely understandable proposition for people who have been away for some time.”
There had been “many opportunities for people to return. If they’re choosing to do so now, they have obviously delayed that decision for a period,” he told a news conference.
Queensland is already charging - $2,800 for one adult, $3,710 for two adults, and $4,620 for two adults and two children, with some provision for waivers. The Northern Territory also charges.
As Victoria announced 134 new cases, Morrison’s message to Melburnians facing the six-week lockdown was: “It’s tough. And it will test you and it will strain, but you have done it once before and you will be able to do it again because you have proven that”.
“We’re all Melburnians now when it comes to the challenges we face. We’re all Victorians now because we’re all Australians.”
Treasurer Josh Frydenberg said the cost to the economy of the Victorian re-imposed lockdown would now be factored into the government’s July 23 economic statement. It would affect forecasts for growth and unemployment. “Victoria is a big part of the national economy” and “the cost to Victoria is up to a billion dollars a week and that will fall heavily on businesses”.
“This is a major challenge to the economic recovery. This is going to have an impact well beyond the Victorian border. It’s already starting to play out in consumer confidence numbers that have been down in the last two weeks, ” Frydenberg said.
“We have been there with JobKeeper and the cash flow boost, which together have provided more than $10 billion into the Victorian economy,” he said.
“We’re ready to do what is required to support Victoria, and Daniel Andrews himself has said whenever he’s asked the Prime Minister for support the answer has been an unequivocal yes.”
Frydenberg confirmed there will be another phase of income support for the period beyond September when JobKeeper is due to finish. The future support would be temporary and targeted, he said. The higher JobSeeker payment is also scheduled to snap back at the end of September, although it is not expected to return to the old rate.
Frydenberg also indicated the government was considering bringing forward the next round of the legislated tax cuts. “We are looking at that issue, and the timing of those tax cuts, because we do want to boost aggregate demand, boost consumption, put more money in people’s pockets, and that is one way to do it”.
NSW premier Gladys Berejiklian told people in communities along the NSW-Victorian border not to move outside their “bubble”; nor should people go into these areas. She warned “the probability of contagion in NSW given what’s happening in Victoria is extremely high”.
The ACT has three new cases, the first in more than a month. Two arrived from a Melbourne hot spot and the third is a household contact.
Authors: Michelle Grattan, Professorial Fellow, University of Canberra