This week's Australian political news

Economic outlook improves in Budget update

Improving economic conditions have resulted in almost $16 billion being shaved off Australia’s Budget deficit for 2020-21, according to latest Federal Treasury estimates. The Mid-Year Economic and Fiscal Outlook papers show that the rebounding post-Covid 19 economy and higher iron ore export prices have contributed to a forecast budget deficit of $197.7 billion, down from the $213.6 billion forecast in the October Budget. Federal Treasurer Josh Frydenberg said the unemployment rate was now expected to peak at 7.5 per cent in the March quarter of 2021, below the peak of eight per cent forecast in the 2020-21 Budget.

Tehan announces $3 billion research funding for universities

Federal Education Minister Dan Tehan has announced that Australian universities would receive almost $3 billion in research funding in 2021. The package of university block grants would support research student scholarships, academic salaries, laboratories and research equipment, and included an additional $1 billion for research announced in the October budget. The University of Melbourne is due to receive the largest allocation ($321 million) in total research block grants, followed by The University of Queensland ($287.8m), Monash ($287m), University of NSW ($286.3m) and The University of Sydney ($274.5m).

Slight jump in overseas arrivals

Overseas visitor arrivals into Australia are on the increase again, with 6,070 short-term visitors arriving in the country in October, up 63 per cent on the previous month. Figures from the Australian Bureau of Statistics show that the number of residents returning rose almost 39 per cent, to 11,170 trips. But the figures are still well down on the previous year, with the number visitor arrivals and returning residents 99 per cent less than that of October 2019.

Payroll job numbers recovering

Payroll data collected by the ABS has revealed that the number of payroll jobs is edging closer back to pre-Covid 19 levels. The ABS said the number of payroll jobs in late November was two per cent lower than in mid-March; in mid-April, payroll numbers had dropped by 8.5 per cent. Victoria’s payroll numbers were 4.3 per cent lower than pre-Covid 19, NSW 1.7 per cent lower and ACT, down 2.5 per cent.

Australia hits back in Chinese barley dispute

Australia has formally retaliated against China’s imposition of import tariffs on Australian barley, taking the case to the World Trade Organisation for resolution of the dispute. Trade Minister Simon Birmingham said Australia took the action only after China had failed to engage with it after imposing tariffs and countervailing duties totalling 80.5 per cent. According to the Government, Australia’s annual barley trade to China averaged around $1.2 billion in the years 2014-15 to 2018-19.