The Morrison government will announce perhaps the most significant federal budget within the last few decades, hoping to re-stimulate the Australian economy.
The annual event is set to take place on Tuesday night, with treasurer Josh Frydenberg taking centre stage to address the government’s plans for a post-COVID-19 recovery.
Prime Minister Scott Morrison said in a statement that this year’s budget will be “one of the most important budget’s since the second World War”.
Early reports indicate that income tax cuts along with a record budget deficit are expected to be the main strategy the federal government will use to reverse Australia’s recession.
The government is predicted to push through its income tax cut plans to this year, two years earlier than the original 2022 plan.
According to reports from the ABC, higher income earners will be the major beneficiaries of these tax cuts, with those earning over $120,000 p.a will receive the highest amount of return.
There will also be a large emphasis placed on job recovery according to treasurer Josh Frydenberg.
“It’s our first, second and third focus, it’s all about jobs tomorrow night”, Frydenberg commented at the Canberra treasury offices on Monday.
This focus on jobs comes as Australia’s current unemployment rate comes to 6.8% and hundred of thousands of Australians have been out of work.
Grants and initiatives to improve Australia’s general infrastructure are also tipped to feature prominently in the new budget, which could further help address unemployment concerns.
Fydenberg told Nine News that, “this has been a very difficult time and it is a hard road ahead, but there is a pathway out and on Tuesday night we will be laying out that pathway through the budget”.
Whilst the budget will provide valuable information about the government’s economic recovery, it is unlikely to address the fate of Jobkeeper and Jobseeker payments in the long term.
This was confirmed by Finance Minister Mathais Cormannn, telling ABC Radio on Monday that “we have already said that the ongoing arrangements in relation to Jobseeker payments will be announced later this year”.
Jobseeker and Jobkeeper payments have become a major point of controversy for the government after they reduced the amount of the supplements on September 28.
Full clarity over the initiatives and policy plans for a post-COVID-19 economic recovery will be announced tonight.