During the COVID-19 pandemic, the Commonwealth Government provided a range of financial support measures to alleviate the adverse economic consequences faced by individuals and businesses, and stimulate economic activity. The authors analyse the effectiveness of four support measures – $550 per fortnight JobSeeker Payment (JSP) Coronavirus Supplement, $750 one-off Economic Support Payment (ESP), the Early Release of Superannuation (ERS) and JobKeeper. 

Key findings

• Targeted income support programs like the JSP Supplement were associated with strong spending responses.
• Targeted income supports were also associated with more spending on essentials but also discretionary items, such as gambling.
• ERS had the largest impact on aggregate spending because people withdrew large amounts of their super.
  Some financial support measures, such as ERS, did not improve self-reported well-being or financial resilience, while the JSP Supplement did.
• Keeping workers in their current jobs can limit productivity and wage growth as evidenced by the JobKeeper wage subsidy scheme.

By understanding the effectiveness of these measures, governments can be ready to respond to future economic downturns using a clear framework and a strong evidence base.