Full Victoria lockdown estimated to suck $1bn from economy every week
Full lockdown restrictions across Victoria could drain the state's economy of $1 billion each week, Treasurer Josh Frydenberg has estimated.
From midnight, Victoria will reimpose stage three restrictions for six weeks in metropolitan Melbourne and the Mitchell Shire.
The closure of the Victoria-NSW border from midnight Tuesday was going to be a significant "challenge" for the national economy, Mr Frydenberg told Today.
READ MORE: What do Stage Three lockdown restrictions mean for Melbourne?
Some public housing estates in Melbourne have been placed into mandatory lockdown Getty / Asanka Ratnayake
"Victoria is a quarter of the national economy and what has been happening with the recent spike in cases has affected consumer confidence more broadly," he said.
"Already our JobKeeper and our cash flow boost programs have injected more than $10 billion into the Victorian economy."
As it stands, the government's revised JobKeeper and JobSeeker legislation will run through to the end of September.
READ MORE: Everything you need to know about Victoria-NSW border permits
The government is scheduled to make an announcement on July 23 about potential changes to JobKeeper and JobSeeker.
The new restrictions in Victoria are slightly different to those imposed across the state in May.
Retail and hairdressers will remain open, but cafes, restaurants and pubs within the restricted zones will return to takeaway only.
"This will be a challenge for our economic recovery not just Victoria but across the nation," Mr Frydenberg said.
"We were starting to see some really positive signs across the economy, prior to this outbreak.
A tram headed for Coburg is seen on Sydney Road in Brunswick, Melbourne. Getty / Darrian Traynor
"What happens in the coming weeks in stemming this tide of new cases will have an impact much broader than just within Victoria."
More than 220 ADF personnel have been deployed to Victoria, Mr Frydenberg said, to assist with relief and support as Melbourne is locked down.
"It's really tough," Mr Frydenberg said.
"I do get worried about the impact it has on people's mental health."
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