Coronavirus: Victoria crisis threatens to derail economic recovery, warns treasurer

Treasurer Josh Frydenberg has warned Australia's response to the pandemic was at a vital stage, with the Victorian crisis threatening the nation's economic recovery.

"As a country we're one country now and two stages. We have Victoria which is being closed - Victoria which has been closing down - and we have the other states like NSW and Queensland that are opening up," Mr Frydenberg told Today.

"What we don't want to see is the events in Victoria derail the broader progress we made as a nation."

He said consumer and business confidence had been showing signs of recovery.

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"We saw some strong retail sales. We saw manufacturing activity get back to where it was in the pre-COVID time."

Mr Frydenberg said how people spend the Federal Government's $750 Economic Support Payment is up to them.

The cash payments will start arriving in the bank accounts of five million Australians today. It aims to help people on lower incomes who are struggling financially due to COVID-19.

"People are going to use the money as they see fit. That's how it should be," Mr Frydenberg said.

"It's our second $750 payment and this payment will cost around $4 billion but it will go to people who need it and whether they spend it on their day-to-day items or they pay down some of their debts that's a matter for them."

Pensioners, veterans, people receiving carers payments and eligible concession card holders will be among the recipients of the cash.

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Mr Frydenberg said research shows younger people are more likely to spend it.

"Some will save it. What the data shows to date is older people do save more than younger people ... it's not for me as the government to be telling people how to spend their money."

Mr Frydenberg said the effective number of jobless Australians was almost double the official 7.1 per cent unemployment rate.

"The effective unemployment rate takes into account not only those who are officially unemployed by also those who have left the labour force altogether as well as those on zero hours and that is around 13.3 per cent right now," he said.

"That is a large number of people reflecting the economic challenges that we see right now."

He also said figures from the International Labour Organisation showed that the pandemic had cost 400 million full-time jobs across the world.

While he said Australia faces a tough path to economic recovery, Mr Frydenberg said it was among the nation's best placed to weather the pandemic.

"Australia is much better placed than any other nation to get through this crisis. Look at the United States 45 million jobless claims 130,000 deaths," he said.

"If you look at the economic impacts we have seen in China, what we're seeing in Europe. We haven't seen those sort of falls here in Australia."