- Manufacturing boost
- Return Australians to work
- Do you deliver equally to women and men?
- Personal income tax cut “quick”
- JobKeeper will continue for now
- Future migration program revealed
- Big gas plan
- Domestic violence care
This year is a unique year, with many Australians still working on the economic implications of the COVID-19 pandemic, and the federal budget will soon launch a national recovery plan.
Prime Minister Scott Morrison and Treasury Minister Josh Frydenberg said the announcement, due out on the evening of October 6, was the most important since World War II.
Economists predict that the country’s cash deficit could reach nearly $ 200 billion as budgets step up to support Australia’s economy against the devastation caused by blockade restrictions. As a result, Australian government bonds are expected to exceed $ 800 billion.
But behind the numbers in the headline, what does the decision made in this year’s announcement mean to you?
Morrison said the budget outlines a “strong plan” to help all Australians recover from the recession and rebuild their economies from the pandemic downturn.
Infrastructure, affordability of energy, training and skill development, and billions of additional investments in manufacturing enhancements are all cited as key focal points to bring the economy back on track.
Brendan Coates, an economist at the Gratin Institute, said the federal government has embraced the need to further stimulate the country’s economic recovery, but that alone remains an open question.
“The recession is incredibly expensive. If we don’t act, we’ll live to regret it,” he told SBS News.
“Our purpose here is to bring the economy back to its potential as soon as possible.
“It reduces long-term costs [and] Long-term scars that would otherwise weigh heavily on the shoulders of the young Australian generation. ”
Return Australians to work
The government has emphasized that the focus of the recovery plan is on job creation and the return of Australians to work, initially focusing on comfortably raising the unemployment rate to less than 6%.
The official unemployment rate fell from 7.5% in July to 6.8% in August as the Australian economy began to regain momentum from the effects of the coronavirus blockade. However, the effective unemployment rate remains high at 9.3% as the continued fight against the Melbourne virus slowed recovery.
More than a million Australians are absent from work, and some young people and women have been hit hardest by the first unemployment caused by the crisis, Coates said.
“The first, second and third priorities of this budget must be work, work, and work,” he said.
“Priority should be the type of project and type of spending, especially the stimulus to support economic recovery in the areas of social needs that emerged during the COVID-19 crisis.”
There are still about 13 Australians applying for all jobs, showing the challenges at hand.
To promote employment growth, the government has announced the JobMaker plan as an important part of the COVID-19 recovery. This will include an investment of at least $ 1.5 billion to promote manufacturing. It also promised an additional $ 1.2 billion to help Australian companies hire 100,000 new apprentices or trainees.
Following a $ 1 billion investment in the JobTrainer program, it will provide training locations for graduates across the country to improve and retrain job seekers in areas of demand.
We are also investing $ 800 million to make the work of individuals and businesses easier in the digital economy.
Do you deliver equally to women and men?
The government has declared that investment in infrastructure and manufacturing will play an important role in the recovery of the country’s economy across cities, towns and communities.
Manufacturing priorities include resource technology and mineral processing, food and beverage manufacturing, medical products, clean energy and recycling, defense and space industries. Infrastructure spending, on the other hand, is set to focus on transportation, water and energy projects.
This includes highway and rail projects worth more than $ 7 billion to reinvigorate the Australian economy.
However, Elizabeth Hill, an associate professor at the University of Sydney, said investments in manufacturing and construction projects need to be balanced with funding for “social infrastructure” such as health, education, children and geriatric care.
Otherwise, she said, budgets risk exacerbating gender inequality and women are unlikely to benefit from the benefits of investing in male-dominated areas.
“If fiscal stimulus seeks maximum job growth, then a strategy that reflects the structure of the economy and the workforce will be needed,” she said. It fits the purpose, the crisis of 2020, and the economy and workforce. “
The government has invested more than $ 1.6 billion in elderly care since the inception of the pandemic, and further commitment in the federal budget is expected to address ongoing concerns in this sector.
Personal income tax cut “quick”
SBS News understands that the budget is likely to include carrying forward $ 20 billion on the already legislated personal income tax cut. However, Australian Institute economist Matt Gourdnov argues that spending cash on health, geriatric care and college is a much more effective method.
“The saved stimulus is a useless stimulus,” he said. “For every single job (about 13,000 jobs) that could be potentially created by tax cuts, 160,000 jobs (12 times more jobs) can be invested in a labor-intensive industry.
“The reason tax cuts aren’t so exciting is that they save.”
The federal government has also already promised to expand JobKeeper and JobSeeker’s income support programs as part of its response to the coronavirus.
Liz Allen, a demographer at the Australian National University, said the government must broadly guarantee that investment will provide support to Australians who have been hit hardest by the economic costs of the recession.
“I hope we see a better prioritization focused on what Australia is … and a lasting investment to help make Australia more equitable and equal,” she said.
“This is not just a short-term shock. It is a long-term earthquake that shocks not only the future of vital statistics, but also the socio-economic well-being of the population.”
JobKeeper will continue for now
The government’s $ 86 billion JobKeeper program is currently set to continue to provide support to qualified employees until March next year.
However, for full-time workers, biweekly payments were reduced from $ 1,500 to $ 1,200, and for part-time workers it was reduced to $ 750.
Meanwhile, the coronavirus boost in job seeker allowances for unemployed Australians has been reduced by $ 300 in two weeks, with supplements expected to continue until January 1, next year.
Opposition leader Anthony Albanese accused the government of cutting payments, labeling the move “premature” and “leaving people behind.” He also seeks budget priorities, including investment in infrastructure, social housing, more skills training, manufacturing and clean energy.
The government continues to consider a permanent increase in JobSeeker rates in a continuous call from advocates to remove uncertainty and raise base rates from $ 40 a day.
Future migration program revealed
Forecasts on the size and composition of Australia’s 2020-21 migration and humanitarian programs will also be revealed as part of the October budget process.
The federal government forecasts a decline of 85% in 2020-21 compared to the 240,000 level in 2018-19, and the immigration system is shaken by the closure of borders.
Deloitte Access Economics predicts that Australia’s population could be 600,000 less by mid-2022 compared to pre-COVID-19 projections, and the impact on population growth is unique to the economy. It is set to affect.
Budget forecasts are understood to indicate that the COVID-19 vaccine is available and that the border will reopen early next year with an optimistic outlook to move migrants back. However, former deputy secretary of the Immigration Department, Able Lizbi, said the country’s commitment to high unemployment and travel restrictions is likely to change the focus of immigration programs.
“If the unemployment rate remains above 6%, it will naturally push down net immigrants,” he said.
“Government migration programs focus on people on land. Give temporary immigrants a path to permanent residence-that will be the focus.”
Big gas plan
The budget for funding Australia’s gas infrastructure will be $ 53 million.
Morrison said gas will be a fuel to help reduce energy prices and emissions as the country shifts its economy into the future.
This is supported by the government’s technology roadmap, which has designated hydrogen, energy storage, low carbon steel and aluminum, carbon capture and soil carbon as preferred emerging technologies.
However, critics are skeptical about gas-led recovery and the feasibility of the roadmap, questioning whether Australia is the most effective way to become a net-zero emission economy. doing.
Care for domestic violence, etc.
The announcement of the federal budget for 2020 will be made after being postponed to May due to economic uncertainty due to the COVID-19 crisis.
Other announcements already made by the federal government are:
-700 new places for women and kids to escape domestic violence Under the $ 60 million “Safe Places Initiative”.
-$ 10 million new funding to reduce numbers Young people caring for the elderly Move to age-appropriate accommodation.
-Investment of $ 61.7 million in Financing for Conservation cultural heritageThe wildfire marine ecosystem has affected coastal communities and the Great Barrier Reef project.
-$ 50 million Recovery of regional tourism An initiative to support businesses in regions that rely heavily on international tourism.
-$ 100 million for new Regional Reconstruction Partnership Or a project in an area hit by a drought, wildfire or coronavirus.
-$ 7.6 million Bereavement payments to parents who have lost their children Stillborn or less than 12 months old.
-$ 800 million aimed at helping individuals and businesses working online Digital economy..
-The university is also promised an additional $ 326 million to provide more than 12,000 places Domestic students..
-$ 3.5 billion to upgrade National broadband network Through an on-demand fiber-to-the-home connection.
-Over 10,000 locations are offered First mortgage deposit scheme..