• The Victorian and Federal Governments are locked in a public battle over new emergency funding for the state, which will remain locked down until next Thursday.
• Announcing extended COVID-19 restrictions on Wednesday, Acting Premier James Merlino called for a federally-funded “JobKeeper-style support program for Victorian workers”.
• Federal Treasurer Josh Frydenberg has so far rebuffed the suggestion, but today said he will continue speaking with Victorian Treasurer Tim Pallas about the situation.
• Visit Business Insider Australia’s homepage for more stories.

The Victorian and Federal Governments are now locked in a heated stoush over emergency financial support, after Federal Treasurer Josh Frydenberg publicly rebuffed Acting Premier James Merlino’s calls for a “Jobkeeper-style” support program for workers impacted by Victoria’s two-week lockdown.

The lockdown, originally set to expire on Thursday, was today extended for at least seven more days, after Victorian health authorities deemed the ongoing COVID-19 outbreak still poses a severe health risk to the general community.

That decision means thousands of Victorian businesses will face restricted trading, or no business at all, for at least a fortnight.

Workers are also facing their first extended COVID-19 lockdown without JobKeeper — the $90 billion payroll subsidy program designed to supplement wages lost through industry shutdowns, which Frydenberg long maintained was a temporary measure.

The Victorian Government today revealed it will provide a further $209 million in grants to eligible businesses, building on the $250 million already earmarked for support payments.

Further announcements regarding regional tourism and accommodation are forthcoming, Merlino said.

But Merlino also redoubled his calls for the Federal Government to chip in, saying what vulnerable Victorian businesses really need is financial backing from Canberra.

“In terms of what we are asking the Federal Government to do, that is a JobKeeper-style support program for Victorian workers, for the period of this lockdown,” Merlino said.

Victorian Treasurer Tim Pallas “has been calling Josh Frydenberg this morning to put that request,” Merlino added, “and I will be speaking to the Prime Minister later today, and I do hope that the Commonwealth will swiftly confirm that they will step up and provide that support.”

The response from Capital Hill has been mooted. After downplaying the likelihood of new federal support payments on the weekend, Frydenberg today defended the decision not to revive JobKeeper after its March demise.

JobKeeper was a “particular program introduced at at a particular time,” Frydenberg told reporters in Canberra.

“We took the decision to enter that program at that time,” he added. “That was the right decision, it was consistent with the advice from Treasury”.

Frydenberg confirmed he will continue speaking with Pallas about the situation, leaving some room for further announcements.

“I will hear him out,” Frydenberg said of Pallas, reiterating that “our position, with respect to the first week of the lockdown, was based on the view that with a short lockdown, a state has the capacity to respond as they announced.”

Frydenberg’s Wednesday statement has already drawn ire from social services groups and unions, who have backed the Victorian Government’s calls for increased federal support.

Taking to Twitter, the Victorian Council of Social Services said Frydenberg’s call to hold off on extra funding “is fine so long as casual workers in [Victoria] can get away with just “considering” eating food, buying medicine or turning on their heater this week.”

“The Morrison government is asleep at the wheel,” added Michele O’Neil, president of the Australian Council of Trade Unions.

“Workers face another week of risk, of lost income and jobs. Where is JobKeeper 2? What’s the plan for effective vaccination and quarantine? Are you paying any attention?”

Industry groups have also made calls for action.

The Australian Retailers Association (ARA) — which estimated Victoria’s original week-long lockdown could cost upwards of $1 billion in lost trade — has called on Canberra to “step up to the plate again.”

“We believe a reintroduction of a scheme like JobKeeper, which is targeted at those most in need, would be the simplest and easiest measure to implement, given the back-end systems are already known and worked well for a year,” said ARA CEO Paul Zahra.

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