Staggering cost to national economy of Sydney lockdown extension revealed

A four-week lockdown extension is set to cost the Federal Government a staggering $2 billion.

The Federal Finance Minister revealed the eye-watering cost of the Greater Sydney lockdown on Wednesday morning, saying $500 million was flowing into NSW households every week as the COVID crisis continued.

“We will work very hard to avoid that (another recession),” senator Simon Birmingham told Sunrise.

“We know these are tough times for Sydney businesses and households and many people across Sydney.

“Right now we have economic support to the tune of $500m per week flowing into NSW.”

He said the Government had discussed the financial impact a lockdown extension would have, knowing it was a likely outcome.

NSW recorded 172 new cases on Tuesday, the worst day since the outbreak started on June 16.

“(We’ve had discussions) about how we (government) can ensure the right assistance continues to support Sydney and NSW through this and make sure the lockdown is a success when it comes to suppressing COVID,” he said.

Senator Birmingham was asked whether JobKeeper would return but confessed while it had worked as a nationwide scheme, the COVID disaster payment in place was “now helping hundreds of thousands of people across Sydney”.

“It is able to be targeted, but it also has a broader reach,” he said.

“It is available to, for example, casual employees who may not have been permanent casuals.

“That provides a real lift in terms (of) the people who are eligible and it is actually proving to be a more adaptable and effective support for the long term in these targeted lockdowns.”

Sydney’s outbreak has not shown any signs of slowing down, with the virus now spreading to the Central Coast.

It’s anticipated the NSW Premier will revealed a four-week extension to the lockdown later on Wednesday.

But areas on the outskirts of Greater Sydney could exit lockdown ahead of suburbs that have been harder hit by coronavirus.

Central Coast MP Adam Crouch wrote on Facebook: “I spoke to the Premier yesterday and she will end the Central Coast’s lockdown as soon as it is safe to do so.”

However, he said five local being recently discovered in the area would prevent the rules from being eased for now.

The northern beaches is another area where restrictions could be eased ahead of schedule.

“I’m hopeful that any easings of restrictions that are being considered would include Manly and the northern beaches,” Manly MP James Griffin said.

It is believed the State’s crisis cabinet reached a decision on Tuesday night on lockdown, with a formal announcement due on Wednesday.

with Anton Nilsson