Australians in and out of work face a long, hard and bumpy road as the nation recovers from the coronavirus pandemic.
Those out of work were hit with a cut to their dole on Friday, as the JobSeeker supplement reduced from $550 a fortnight to $250.
From Monday, the JobKeeper rate will decrease and be split into two-tiers for full-time and part-time workers.
The full rate will go from $1500 to $1200 a fortnight, while people who worked less than 20 hours a week pre-pandemic will receive just $750.
Treasurer Josh Frydenberg revealed the deficit reached $85.3 billion in 2019/20 as the government weighs job creation measures in the October 6 budget.
"Yes, the hole in the Australian economy is significant. Yes, the road back will be long, bumpy and hard," Mr Frydenberg told reporters in Canberra.
Prime Minister Scott Morrison will make a pre-budget address next Thursday at the National Press Club in Canberra.
The coalition has abandoned its budget repair strategy, laying the ground for big spending measures next month.
National economic recovery relies heavily on Victoria continuing to squash the virus.
The state recorded 14 new cases on Friday, as well as eight deaths, pushing the national toll to 869.
Victorian Premier Daniel Andrews has raised the possibility of easing restrictions earlier than planned next month with infection rates tracking ahead of schedule.
But there's not expected to be wholesale changes on Sunday when some freedoms will be restored.
Mr Andrews faced an inquiry into the state government's bungling of hotel quarantine, saying he couldn't recall who decided to staff it with private security.
The state's second wave has been traced to two Melbourne hotels, with the outbreaks linked to more than 750 deaths and triggering economically destructive lockdowns.
NSW broke its three-day streak without a coronavirus case being detected in the community.
A man in his 50s in Sydney's southwest tested positive despite not having contact with a previously confirmed case.
Queensland Chief Health Officer Jeannette Young said it appeared the infection would reset the border clock with NSW, but she would await the investigation result.
Queensland has vowed not to fully open the border with NSW until the state records 28 days without community transmission.
The federal government is in a slanging match with Queensland over troops being withdrawn from that border on September 30.
Other hard borders in NSW, South Australia and the Northern Territory will retain Australian Defence Force personnel until at least mid-October.
© AAP 2020