Australian Federal Budget 2020-21
Treasurer Josh Frydenberg handed down Australia’s federal budget yesterday detailing steps to boost the economy heavily impacted by the COVID-19 pandemic.
MAIN POINTS
- The budget provides a long, debt-driven path to recovery as the government announces spending measures to keep jobs and businesses running
- The government forecasts a record $213.7 billion deficit and net debt to peak at $966 billion (44% of GDP) by June 2024
- Unemployment is forecast to peak at 8% in December 2020, focusing the government on job creation. Unemployment is expected to fall to 6.5% by June 2022
Australia’s Coalition government intends to spend to stimulate business investment and create new jobs in this budget, the first delivered in a recession in 30 years. Treasurer Josh Frydenberg described the path to recovery as “monumental”, said infrastructure spending, personal income tax cuts and business incentives would create new jobs and boost consumer spending.
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