Wage guarantee 'not the best way forward'

Finance Minister Mathias Cormann has all but ruled out a UK style wage guarantee for workers, telling Sky News the measure was not the best way forward in the “Australian context”.

Last week, British Prime Minister Boris Johnson declared the government would pay 80 per cent of salary for staff who are kept on by their employer, covering wages of up to $5000 a month.

But Sky News understands Australian treasury officials have advised the Morrison Government against the policy due to concerns business would not pass it on to workers.

When asked, Mr Cormann said the government had made a “judgement” and insisted the Coalition would be providing support to business and those who lose their job during this period.

“What we are trying to do is keep as many businesses in business through this very difficult period as best we can,” he said.

“We have made judgements on what is most appropriate in the Australian context … we don’t think that in the Australian context that is the best way forward.

“It is essentially making sure we maintain as much fiscal firepower possible to continue to scale up the response as required.

“The package so far represents just under 10 per cent as a share of GDP. That is one of the most substantial stimulus packages, safety net packages, in the world in terms of proportion to the size of the economy.”

Image: Kym Smith/ News Corp Australia