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Quarterly GDP figures mask woes of struggling sectors, says industry body
Australia’s miraculous economic recovery from the coronavirus crisis does not show the full picture of sectors still affected by restrictions and require further support, according to a peak industry body.
The Australian Chamber of Commerce and Industry responded to the latest ABS National Accounts data, saying it shows the economic recovery is now well underway, with GDP growth for the December quarter exceeding expectations, up a further 3.1 per cent, taking the year-on-year rate for 2020 to -1.1 per cent.
Read more at MyBusiness.
Budget highlights at a glance
Major Spending Initiatives
- $36 billion in new spending
- $17 billion in personal tax cuts
- $8.5 billion in universal Medicare spending
- $5 billion for childcare
- 20% of student debt wiped for 3 million students
- $150 off power bills for all households and small businesses
- Prescription costs capped at $25 each
Economic Forecasts
- Growth: 1.5% in 2024-25, rising to 2.25% in 2025-26
- Inflation: Expected to return to 2-3% band by June 2025
- Wage growth: Outpacing cost of living rises by 0.5% this year
Business Measures
- Non-compete clauses removed for workers earning under $175,000
- $20 million “Buy Australian” advertising campaign
- Incentives for construction and building worker apprentices doubled from $5,000 to $10,000
- Uncertainty around the instant asset write-off scheme
- Foreign investors restricted from buying new homes
Budget Position
- Deficit: $27.6 billion in 2024-25, rising to $42.1 billion in 2025-26
- Government spending as a percentage of GDP rising to 27%
