The government will hand out cash payments of $500 in a bid to prevent a recession as coronavirus hammers the economy, it has been reported.

Prime Minister Scott Morrison is due to announce a range of measures to boost the economy tomorrow.

According to Sky News, they will include $500 one-off payments to pensioners and Newstart recipients.

The government will also hand out cash grants to small businesses and legislate to give tax breaks to small and medium companies.

The stimulus package will total around $20 billion, almost double the $10 billion figure that has been previously speculated.

A spokesman for Treasurer Josh Frydenberg told Daily Mail Australia: 'This is pure speculation. The government will announce its package tomorrow.'

Health Minister Greg Hunt, Australian Prime Minister Scott Morrison and Australia's Chief Medical Officer Professor Brendan Murphy speak to the media during a press conference on Wednesday

There are calls for changes to Newstart to allow casual workers access to paid sick leave

What measures could stimulate economy? Cash handouts to Newstart recipients and pensioners Cash to local councils to bring forward infrastructure projects Tax breaks for businesses buying assets such as machinery Delay payroll tax paid by employers Bring forward bushfire relief payments Changes to Newstart to allow casual workers access to paid sick leave Reduce deeming rates (so pensioners and veterans can receive more government money) Pause in compulsory super payments Advertisement

The idea behind handing out cash to those in need is that people will spend it straight away and give struggling businesses a much-needed boost.

It comes after warnings from senior economists that coronavirus could push the world towards recession.

Westpac chief economist Bill Evans is expecting the Australian economy to contract by 0.3 per cent in both the March and June quarters of 2020, which would mark the first recession since mid-1991.

Kevin Hassett - a former economic adviser to US President Donald Trump - warned there was a 'pretty close to 100 per cent' chance of a global recession.

The federal government's stimulus package will be designed to ward off an economic downturn with memories still fresh of the financial crash of 2008, which saw 223,900 Australians lose their jobs over six years.

In a hint they will include an extension of asset write-offs for companies, Mr Morrison on Tuesday said part of the plan was about 'supporting new investments.'

He also said government infrastructure projects would be brought forward.

Mr Morrison said he had seven principles for the stimulus package.

'It must be proportionate, timely and scalable, targeted to support the most affected, aligned with central bank monetary policy and with state governments, use existing delivery mechanisms, be temporary with an exit strategy, and favour measures that will lift productivity,' he said.

Mr Morrison said no new 'methods of delivery' would be used and slammed Kevin Rudd's Labor government for giving $900 cheques to everyone, including the dead as part of its $42 billion stimulus in February 2009.

'We saw the mistakes of trying to rush a range of new programs,' he said.

The government is also facing calls to bring forward bushfire relief payments, delay payroll tax obligations and increase the Newstart allowance.

'We will have a very comprehensive and very substantial package designed to support the Australian economy through this economic shock,' he told Sky News on Monday.

'It's about keeping businesses in business and Australians in jobs.'

Workers in forensic suits clean a train in Tokyo as the coronavirus spreads around the world

How is coronavirus affecting the Australian economy? Coronavirus spawned in a market in Wuhan, China in December. Cities were placed on lockdown and factories were shut to halt the spread. In late January the Australian government shut the boarders to people coming from China. This meant that 95,000 students could not get in to the country. Chinese students represent 40% of Australia's international students, meaning the universities have taken a massive hit on fees. Accommodation providers are also under the pump as they lose rental income. The tourism sector including airlines has also been slammed. Normally, 1.3million Chinese tourists come Down Under per year. As the virus spread around Europe and the US, fears of a global recession grew. On 9 March, the Australian stock market suffered its worst day of trading since the GFC. Advertisement

However, experts are divided on whether the massive cash boost can help.

Former Rudd economic adviser Andrew Charlton wrote in the Sydney Morning Herald that unlike the financial crash which saw reduced demand, the coronavirus is a supply crisis.

BIS Oxford Economics chief economist Sarah Hunter said giving tax relief to companies may not help.

'The problem with a business investment allowance is that some of that might be spent on new equipment which may face troubles in the supply chain affected by the coronavirus,' she told the AFR.

CommSec market analyst James Tao said a $10billion economic stimulus package on its own may be insufficient to properly stimulate the economy as investors feared a recession.

'At this particular point, $10 billion it probably is just a starting point,' he told Daily Mail Australia on Monday.

'Coronavirus concerns alone, some are saying this will lead to a recession or quite a sharp economic slowdown in the economy.'

Mr Frydenberg acknowledged that the response required is 'very different' from that of the 2008 crash.

'Our response is on the supply and demand side,' he told reporters on Monday afternoon.

'That economic response will be substantial. It will be targeted. And it will be focused on supporting those people and those businesses that need our support through this period.'

Travel ban extended to Italy, flights cancelled and routes changed: Everything you need to know about coronavirus and your holiday - and if you'll be refunded as the number of confirmed cases hit 128

By Charlie Coe for Daily Mail Australia

Travel advice for Australians planning international holidays was upgraded on Wednesday as the coronavirus continues to spread.

But while Australians may be keen to cancel their trips, they might not get their money back.

It comes as the coronavirus travel ban was extended to Italy, effective from 6pm on Wednesday.

Qantas customers will be offered fee waivers, which will allow passengers to change bookings made for the rest of this month for flights up to June 30.

Flight crew from Asia arrive at Sydney Airport on Wednesday. Australians who have booked with Qantas will be offered fee waivers to change their flights

Cathay Pacific and Dragon passenger airplanes pictured idle on the tarmac at Hong Kong's Chek Lap Kok International Airport

Qantas planes pictured at Sydney Airport on Tuesday. Australians are risking not being covered for travel plans cancelled because of the coronavirus outbreak if they bought their insurance policies after the outbreak became a 'known event'

A passenger wearing a mask and gloves arrives at Sydney Airport on Wednesday morning

Frustrated passengers are seen during technical issues at Sydney Domestic Airport in March 2018. Customers may not get their money back for insured trips if the policy was bought after January 23 - when the coronavirus outbreak became a 'known event'

A passenger is pictured talking to a policeman on Wednesday at Sydney Airport. Qantas has offered customers flexibility on flights booked for the rest of March

Passengers may also be eligible for fare waivers if they are no longer able to travel to a country such as China because of immigration restrictions.

'Passengers affected by the flight changes announced yesterday will be re-accommodated on other services,' a Qantas spokesperson told Daily Mail Australia.

Qantas became the latest airline to slash flights on Tuesday as the travel industry battles a sharp reduction in bookings amid the spread of the deadly COVID-19 virus.

The Insurance Council of Australia said the key cut-off point for those who bought travel insurance for their trip was January 23 - when the Department of Foreign Affairs and Trade first issued travel advice about the coronavirus.

At that point the spread of the disease was considered a 'known event' by insurers.

CORONAVIRUS CASES IN AUSTRALIA: 26,651 Victoria: 19,835 New South Wales: 4,166 Queensland: 1,149 Western Australia: 659 South Australia: 466 Tasmania: 230 Australian Capital Territory: 113 Northern Territory: 33 TOTAL CASES: 26,651 CURRENT ACTIVE CASES: 1,340 DEATHS: 810 Updated: 9.56 PM, 13 September, 2020 Advertisement

'If people are travelling and bought their travel insurance before it became a known event... the majority of travel insurance policies should cover people if they contract coronavirus overseas of their trips have to be moved around countries and places,' the council told The Guardian in February.

After the January cut-off date, cancellation costs as a result of pandemics and epidemics are only covered by less than half of insurers.

Choice's coronavirus travel insurance review found though just over half of insurers covered medical expenses.

A 'cancel for any reason' add-on is a way around the issue, with travel insurance provider Covermore explicitly saying it will cover costs associated with the coronavirus outbreak.

Qantas customers though will be offered fee waivers, which will allow passengers to change bookings made for the rest of this month for flights up to June 30.

Money expert Effie Zahos told the Today show on Wednesday morning the Qantas flight reductions were good news for customers as the airline was absorbing the cost of cancellation.

A passenger is pictured arriving into Sydney Airport on Wednesday with her face hidden by a hat and a face mask

A passenger in a bright Hawaiian shirt arrives in Sydney wearing a face mask on Wednesday morning

MONEY EXPERT'S ADVICE FOR CANCELLED FLIGHTS 'When you hear the boss of Qantas say they have grounded 38 plane that is huge. 'There are planes empty so they will have to be cut. Virgin will be the next one. Can they sustain it? 'Interesting thing for consumers, if flights have been cancelled by the airline you are in a nicer position because they have cancelled it and you could possibly get your money back or definitely book for a later date. 'I know Qantas is having giving its consumers fee waiver when it comes to shuffling flights around. 'That is great for consumers - I know they have been hanging out for airlines to cut the flight so they don't have to lose money. 'It is tough for the airline industry obviously. What they will be focusing on no doubt is travel destination and holiday deals to places that are considered more safe.' Source: Personal finance commentator Effie Zahos on the Today show Advertisement

'If flights have been cancelled by the airline you are in a nicer position because they have cancelled it and you could possibly get your money back or definitely book for a later date,' she said.

For those who have flights booked to mainland China, meanwhile, passengers will be eligible for a full refund.

Many passengers who arrived in Sydney on Wednesday were shocked at the lack of precautions in place to prevent the spread of coronavirus.

Cloris Liu was among those to fly in on Wednesday, two weeks after she left China.

Poll Is Australia doing enough to prevent the spread of CORONAVIRUS? Yes No Is Australia doing enough to prevent the spread of CORONAVIRUS? Yes 857 votes

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In that time she has been cooped up in a Thailand hotel as part of the government's third-country quarantine policy.

Ms Liu said she was happy to arrive back in Australia to see her boyfriend, but is not sure why people her aren't treating the threat of COVID-19 more seriously.

'I'm a little bit (concerned) that there's not many people wearing masks, it is like they are not taking it seriously,' she told Daily Mail Australia.

I'm from near Beijing and my city is pretty safe compared to Wuhan province.

'Everyone over there is wearing masks, you have to self-regulate and check out your temperature before you leave the house.

'If you go to a shopping mall they are checking your temperature at the door before you can enter.'

It comes as travel agents have been bombarded with calls and emails from customers concerned about the status of their flight.

Cloris Liu (pictured) flew in from Thailand on Wednesday, two weeks after she left China. She said she was worried that Australians were not taking the threat of coronavirus 'seriously'

A health officer checks the body temperature of a traveller as they prepare to board a flight at Kuta Airport in Bali, Indonesia

McDonald's BANS the use of reusable coffee cups McDonald's has banned the use of reusable coffee cups in a bid to stop the spread of coronavirus. The fast food giant has suspended the use of the environmentally-friendly cups for all of its stores across Australia and New Zealand. 'At McDonald's, the safety of our customers, people and the food and drinks we serve is of the utmost importance,' a McDonald's Australia spokesman said. 'We have made the decision to suspend the use of reusable coffee cups at restaurants across the country at this time.' Advertisement

One travel agent has told customers 'to avoid sending multiple emails or calling' so their staff can keep up with demand.

Prime Minister Scott Morrison announced the coronavirus travel ban to Italy in a press conference on Wednesday morning.

Australian residents can fly but must self-isolate for two weeks when they land.

The same rules are in place for Iran, South Korea and mainland China.

'The situation in Italy is now commensurate with the other countries where we previously had travel bans put in place, so we'll be extending that travel ban to Italy now,' Scott Morrison said in a press conference on Wednesday morning.

Travel agents have been inundated with calls and emails from frantic passengers trying to find out their flight status

What can Qantas customers do if their flights are cancelled? Qantas are offering fee waivers for bookings made for the rest of the month. Changes must be made at least three days before travel, and travel must start on or before June 30. Those who have booked flights directly with Qantas to mainland China are eligible for a refund. Flights are temporarily suspended until mid-July to mainland China with Qantas. Passengers may also be eligible for fare waivers if they have booked to go to a country. Passengers who are affected by flight changes announced on Tuesday will be re-accommodated on other services. Advertisement

Until now 11 flights a day have landed in Australia with travellers who originated in Italy, which has been placed into total lockdown as it combats more than 10,000 cases of the deadly virus.

Qantas announced drastic cuts to flight numbers on Tuesday. Virgin Australia is yet to follow suit - although the airline cut its flight network by three per cent at the end of last month.

Qantas flight routes to London will be changed and eight of the airline's 12 A380 aircraft will be grounded due to low demand.

Smaller planes will be used for flights and the frequency of travel will be reduced.

Qantas chief executive Alan Joyce - the richest CEO in Australia - has announced he will not take his $23.9 million salary for the next three months, and salaries for the company's executive management team will be cut by 30 per cent.

The biggest change is for flights from Sydney to London - from April 20, Qantas flights will travel to Perth instead of Singapore for stopovers.

The planned Brisbane to Chicago route - expected to begin in April - has been delayed to September.

Qantas flights from Brisbane and Melbourne to San Francisco have been suspended.

Mr Joyce said there had been a 'sharp drop in bookings' across all airlines due to the coronavirus outbreak.