Josh Frydenberg has slammed Daniel Andrews for 'devastating' the economy, as the treasurer revealed the true impact of Victoria's lockdown for the first time.
Scott Morrison and his cabinet ministers have in recent weeks ramped up attacks on the embattled premier, who has come under increasing pressure over his handling of the state's second wave.
Mr Frydenberg didn't mince his words on Sunday, saying Mr Andrews was responsible for a 'litany of failures' that saw the virus spiral out of control and force millions of people back into lockdown.
'The costs are immense. Treasury have said 10 to 12 billion dollars is the hit to the Australian economy over the September quarter,' he said on Sunday.
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Melburnians are seen on the city's streets on Sunday in the winter sunshine
Mr Frydenberg accused Mr Andrews of over-reach for seeking a 12-month extension of his government's state of emergency powers.
'I want to hear more about a message of hope for the people of Victoria,' Mr Frydenberg, himself a Victorian, told Sky News' Sunday Agenda program.
'Daniel Andrews and the Victorian government need to be talking more about the road out than about a longer road in.'
Victoria's makes up a quarter of Australia's economy but has been hit by tough Stage Four restrictions that were imposed on Melbourne on August 2.
The measures came as the state's outbreak soared out of control, peaking at more than 700 new cases on August 4.
A couple enjoy the sun on Melbourne's Yarra Banks on Sunday afternoon
Since the lockdown began, daily new case numbers have dropped.
Victoria recorded 114 new coronavirus cases on Sunday bringing the state's total to 19,015, of which 2,830 are active.
On Saturday the new infection numbers dipped below 100 for the first time in almost two months with 94 new cases detected.
But the costs of getting the virus under control have taken a huge economic toll, prompting scathing criticism from Mr Frydenberg.
'Restrictions imposed by the Victorian Government have had a devastating impact on the economy,' he said on Sunday night.
The measures came as the state's outbreak soared out of control, peaking at more than 700 new cases on August 4
Jobless queues at Centrelink in Flemington, Victoria, on March 23. Treasurer Josh Frydenberg blasted Victoria's Premier Daniel Andrews as he wants restrictions loosened so the economy can recover. Mr Andrews says the economy can't recover until the health crisis is fixed
'The number of Victorians on unemployment benefits has significantly increased with the impost of restrictions while numbers in other states have declined.
VICTORIA BY THE NUMBERS
* JobKeeper – about 280,000 entities have received $12.25 billion in payments for 975,000 Victorians.
* Treasury estimates 60 per cent of Australia's 2.24 million December quarter JobKeeper recipients will be in Victoria
* In the March quarter, about 60 per cent of 1.75 million JobKeeper recipients will be from Victoria
• CashFlow Boost – More than 200,000 entities have received about $6 billion in credits
• JobSeeker – More than 400,000 recipients
• Coronavirus supplement ($550) – Around 600,000 recipients
Source: Treasury analysis released by Treasurer Josh Frydenberg's office
'At the same time household spending in Victoria is down more than 30 per cent through the year while the rest of Australia is only down around 3 per cent.'
Premier Andrews said he wasn't interested in arguing with anyone 'other than this wildly infectious virus'.
'What I would say is this, there can be no economic recovery until you get the health problem fixed,' he said on Sunday.
Premier Andrews said there were still two weeks to go before the Stage Four restrictions are scheduled to end.
'This strategy is working. We are going to defeat the second wave,' Mr Andrews said.
'I don't think it's unreasonable to put forward a plan that is based on data, science and evidence and the best of medical advice.'
According to Treasury figures, Victoria has seen a massive spike in people claiming unemployment benefits and a decrease in spending growth relative to the rest of Australia since the lockdowns were imposed.
In the December and March quarters, more Victorians are forecast to be on the JobKeeper program than every other state combined, the Treasurer's office said in a release.
Treasury data found those receiving unemployment benefits increased by eight per cent across Melbourne when Stage Four restrictions were re-imposed, but by only three per cent in regional Victoria with less rigorous stage three restrictions.
The Treasury analysis also found the lockdowns cut discretionary spending on goods and services.
Discretionary spending growth fell by 40 per cent in the year to mid-April then recovered to negative five per cent in June as the first round of restrictions were eased.
In August, however, it has fallen again by 45 per cent as the second round of lockdowns bite with the Stage Four restrictions having an immediate impact on spending.
Spring in Melbourne as residents still struggle under Stage Four restrictions. Pictured: Southbank on Saturday. Federal Treasurer Josh Frydenberg has ripped into Victoria's Premier Daniel Andrews for a 'litany of failures' costing the state billions
Treasury figures released by Treasurer Josh Frydenberg's office show Victoria's unemployment level shooting above the rest of Australia due to coronavirus lockdowns
Treasury figures released by Treasurer Josh Frydenberg's office show Victoria's household spending has fallen well below the rest of Australia, harming the economy
This week's June quarter figures, out on Wednesday, are expected to show a GDP fall of up to 7 per cent for the biggest quarterly contraction since World War II.
GDP is a measure of the nations Gross Domestic Product, which is the monetary value of all goods and services produced and is used as a barometer of economic health.
With GDP falling 0.3 per cent in the three months to the end of March, that will make two negative quarters in a row - which means Australia is officially in recession.
It will be Australia's first recession since 1991.
In a recession, economic activity falls, jobs are lost and unemployment rises.
STATE OF EMERGENCY SET TO BE EXTENDED IN VICTORIA
Victorian Premier Daniel Andrews says the state's daily coronavirus cases remain too high for him to release a road map out of lockdown.
Victoria recorded 114 new COVID-19 cases and 11 deaths on Sunday, bringing the state's toll from the virus to 524 and the national figure to 611.
Of the fatalities, 382 are linked to aged care.
It comes after the state saw 94 new infections on Saturday - the first time daily case numbers have fallen below 100 since July 5.
While the premier said the downward trend was promising, it was still too early to announce how restrictions will ease come September 13.
ANOTHER TWO WEEKS OF STRICT LOCKDOWN IN MELBOURNE
Metropolitan Melbourne is subject to another fortnight of strict stage four restrictions including an 8pm to 5am curfew and a ban on travelling beyond a five-kilometre radius of home.
Regional Victoria is under slightly less strict stage three restrictions.
'We are seeing a fall across each of the key metrics and the strategy is working and that is a credit to every Victorian who has made a powerful contribution to that end,' Mr Andrews told reporters on Sunday.
'But we just have to stay the course on this.'
The premier said new cases numbers would 'explode' if restrictions were eased now.
The state's next set of restrictions will be guided by 'science and data and evidence' and will likely be in place for 'many months', he said.
With lower case numbers, it will also be possible to take a more 'localised and isolated approach' to stemming coronavirus outbreaks.
An announcement will be made on Monday regarding how the government will work with the business sector on its plans to open up.
STATE OF EMERGENCY SET TO BE EXTENDED
Meanwhile, it looks likely the government has the support of enough crossbench MPs in the upper house to extend the current state of emergency beyond September 13.
Key crossbencher Fiona Patten said on Saturday she could get support for a sixth-month extension of the state of emergency - rather than a year as originally proposed
Under the Reason Party proposal, the government will be able to write and pass COVID-19-specific laws until March but would have to brief minor parties and independents once a month to justify the continuation of the state of emergency.
'This is a fair arrangement that I believe could gain the support of several of my colleagues and pass the parliament - only by a small margin though,' Ms Patten said.
Mr Andrews said discussions with the crossbench were still ongoing.
STATE OF DISASTER ALSO SET TO BE EXTENDED
A separate state of disaster order is also set to be extended when it expires this week, allowing the curfew and five-kilometre rule to continue.
The power to extend the order lies with Police Minister Lisa Neville rather than parliament.
Nine of Victoria's 11 deaths are linked to outbreaks at aged care facilities.
The deaths include one man aged in his 70s, five women and one man in their 80s and three women and one man in their 90s.
Victoria's 2830 active cases include 406 healthcare workers and 1277 in aged care.
There are 472 people in hospital with coronavirus, including 25 in intensive care.
Source: AAP
The jobless rate is now 7.5 per cent compared with 5.1 per cent in February, meaning more than a million people are now unemployed.
Federal parliament must pass both JobKeeper and the enhanced JobSeeker unemployment benefits this week as the existing arrangements run out next month.
JobSeeker and JobKeeper payments have been extended past September but Government has said it will reduce the amounts of the supplements.
After this week, parliament won't sit again until the October 6 budget.
Treasurer Frydenberg has been pushing for a suppression strategy for the coronavirus with an easing of restrictions rather than an elimination strategy.
Melbournes venture out in Southbank on Saturday to enjoy the spring sunshine. Premier Daniel Andrews said the virus is not yet under control enough to ease restrictions or the state will risk the coronavirus once again spiralling out of control
'As we have seen in other states, if you can successfully suppress the virus jobs will return,' he said in a release on Sunday night.
'In July the effective unemployment rate in Victoria, before the stage four lockdown, was around 10.5 per cent, while it was around 8.5 per cent in NSW where they are managing the virus and have reopened their economy.'
The suppression strategy has been opposed by epidemiologists who say it would undermine the containment.
Suppression is also opposed by some economists who say it would result in yo-yo-ing restrictions that keep having to be reimposed, and uncertainty for business.
The political argy bargy between Labor's Victorian Premier and the Coalition's Federal Treasurer comes as world coronavirus case numbers soared to 25.2 million with 847,241 deaths on Sunday night.
The USA remains the country with the most cases at 6.1 million infected and 186,857 dead.
Australia's total case numbers rose by 125 to 25,670 on Sunday night according to the Federal Health department while the death toll rose to 611.
CORONAVIRUS SUPPLEMENTS FORECAST TO BE REDUCED - WHAT YOU WILL GET
The Federal Government will extend the JobKeeper and JobSeeker programs past September but said the amount will be reduced.
More than 5 million Australians receive payments from the JobKeeper and JobSeeker programs.
Parliament must pass both JobKeeper and JobSeeker amendments this week as the existing arrangements run out next month. After this week, parliament won't sit again until the October 6 budget.
JOBKEEPER
Reduced from a fortnightly benefit of $1500 to $1200 at the end of September, and then down to $1000 from December to March. People working fewer than 20 hours a week will receive $750.
The payments will fall again to $1,000 a fortnight, and $650 a fortnight for people working fewer than 20 hours, for the first three months of 2021.
Businesses must prove they're still in financial distress each quarter, down at least 30 per cent on pre-pandemic levels, to stay in the program after September.
JOBSEEKER
The JobSeeker unemployment benefit had a temporary maximum of $1100 per fortnight to September.
After September it will be reduced to $815 per fortnight until the end of the year.
