06 Oct The 2020-21 Australian Budget
Key Points:
- The Government now expects the Federal budget deficit to peak at a record $213.7bn this financial year. That’s around 11% of GDP, its highest since the end of WW2. The risk is the deficit will be worse at around $230bn.
- Key measures include earlier tax cuts, massive tax breaks for investment & a new wage subsidy scheme.
- Providing more stimulus & holding off on budget repair are the right thing to do. But it will be a long hard slog to get the deficit back down and stabilise public debt.
