Banks will continue to act as shock absorbers for the economy by extending the 6-month repayment holidays with a further 4 months for households and businesses that can provide evidence they are ‘viable borrowers’.

After the recently announced 6-week Stage 3 restrictions in Metropolitan Melbourne, this extension will deliver relief for businesses ordered back into lockdown.

The pledge of support from the banks will take us through Christmas into the new year and help shoulder the economic burden for the 800,000 customers who deferred over $260 billion worth of loans.

Federal treasurer Josh Frydenberg is content with the announcement and thanks the banks and regulators for their efforts. Mister Frydenberg said, “the Australian Banking Association has confirmed that banks will continue to support customers who need it with up to another four months of deferred repayments on already deferred loans. This initiative has been agreed upon with APRA, who will provide the banks with extended regulatory relief so that they can continue to support their customers with greater flexibility during this time.”

The great thing about this announcement is that this new phase of support turns the feared September/October cliff into more manageable steps for Australians to get back on their feet.

So for anyone who considered sitting on their hands waiting to “see what happens” in September will have to extend their waiting game until after Christmas at the very least.

Or better, act now, look for the opportunities that are currently there, staring you right in the eyes and support your future selves and the economy.