A central element in Australia’s fiscal response has been the cash payments to the vulnerable sections of the population. Underlying this strategy are the results of research by Australian economists based on the experience of cash handouts during the GFC (global financial crisis) that these payments boosted spending by recipients and were effective in providing an economic stimulus. While the first stimulus was directed largely at the business sector, the second package was designed to provide income support to those who have lost their jobs or are on reduced income due to the lockdown.