News dalla rete ITA

15 Febbraio 2021

Australia

THE RECOVERY IS LOCKED IN – NOW A GROWTH MINDSET IS NEEDED: TREASURY

The economic recovery is probably “locked in” and the nation should shift to a “growth mindset” as vaccines are rolled out, Treasury secretary Steven Kennedy says. Reviving weak non-mining business investment over the next one to two years through tax incentives was the key to transitioning from the strong “consumer-led” recovery to a broader-based economic revival, he told a parliamentary committee. Treasury is closely watching business investment, after more than a decade of lacklustre capital expenditure by firms around the world. The national economy would continue to receive a boost for at least two to three more years from the $250 billion in federal government spending and tax relief, as households and businesses gradually deployed their stimulus-fuelled balance sheets, Dr Kennedy said. The pipeline of stimulus included announced but yet-to-be-fully deployed measures such as personal income tax cuts, JobMaker hiring credit and an extra $1080 Low- and Middle-Income Tax Offset that will flow to people after they file their tax returns from July this year. Dr Kennedy, the government’s top economic adviser, expects “some job losses”, particularly in health restriction-affected sectors such as aviation after 1.6 million employees and 500,000 businesses roll off JobKeeper at the end of March. A “pause” in the falling unemployment rate is anticipated between March and June, but Dr Kennedy forecast that the jobless rate – now 6.6 per cent – would fall during the second half of 2021, with many new jobs more than offsetting the retrenchment of some workers. He said the economy and labour market were recovering faster than anticipated at the time of the December mid-year federal budget update and that Treasury now “concurs” with the Reserve Bank of Australia’s more recent unemployment forecast of 6 per cent by the end of 2021 and 5.5 per cent in mid-2022. Separate Parliamentary Budget Office data shows government revenue rebounding to around pre-pandemic levels. Revenue was $131.4 billion over the December 2020 quarter, about $3 billion higher (or 2 per cent) than in the December 2019 quarter and $21.2 billion (or 19 per cent) higher than the September 2020 quarter. Expenses were still elevated at $154.4 billion in the December 2020 quarter, an increase of $31.0 billion (or 25 per cent) from the same period in 2019. Pushing back against suggestions by the tourism industry that the $90 billion JobKeeper wage subsidy should be extended beyond March, Dr Kennedy said nearly all other countries were ending their COVID-19 wage subsidies before Australia, including New Zealand, which stopped its program last September. About $150 billion of the federal government’s pledged $250 billion stimulus has been deployed by the government so far, with an extra $200 billion in bank deposits being hoarded by households and small business. Under the low- and middle-income tax offset, taxpayers with taxable incomes between $48,000 and $90,000 will be eligible for the maximum offset of $1080. (ICE SYDNEY)


Fonte notizia: AFR 11.02.2021