According to the latest Budget Monitor from Deloitte Access Economics, the coronavirus crisis will punch a A$360 billion hole in Australia’s Federal Budget, as markets await Treasurer Josh Frydenberg to delivering a budget release to Parliament on Tuesday.
The budget release is in lieu of what would normally have been the full 2020-21 Budget, which has been delayed until October due to the virus crisis, per ABC News.
Key quotes
“Deloitte Access Economics predicts the economy will still be suffering a “hangover from the traumas of the moment” for years to come, with national income to fall A$35 billion below the official projections in December’s mid-year budget update, or MYEFO, in 2019-20 and by just under A$200 billion in 2020-21.
Forecasts Australia’s unemployment rate will not get back down to 5 percent until late 2024.
The Federal Budget will see an underlying cash deficit of A$143 billion this financial year, A$132 billion next financial year, A$52 billion in 2021-22 and $33 billion in 2022-23.
Australia’s defence against the coronavirus had been “world-leading”.
The tax system is doing exactly what it should do in a crisis.
[It is] acting as a giant shock absorber on the finances of the private sector, leaving more than A$100 billion in the pockets of families and businesses this financial year and next.”
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