BUDGET DEFICIT SET TO EASE; MIGRANT FALL
Budget deficit tipped to fall below $100 billion
Federal Treasurer Josh Frydenberg and Finance Minister Simon Birmingham have unveiled a marginally improved budget outlook, with the budget deficit projected to fall below $100 billion. Releasing the Mid-Year Economic and Fiscal Outlook, the Treasurer and Finance Minister said Australia was on track for a $99.2 billion budget deficit in 2021-22, down from the $106.6 billion deficit forecast in the May 2021 budget. While higher tax receipts and increased export revenue had contributed to a stronger outlook, the Federal Government had spent $25 billion on its emergency response to the Delta outbreak. Coinciding with the mid-year budget update, the Australian Bureau of Statistics estimated that the nation’s unemployment rate had fallen to 4.6 per cent, seasonally-adjusted, in November.
Immigration bans weigh on population growth
Australia’s national population grew annually by just 0.2 per cent to 25.7 million at the end of June 2021, underlining the effect of Covid-19 in restricting immigration flows. The Australian Bureau of Statistics reported that net overseas migration was a negative 88,800 people, offset only by a natural increase of 134,800. Before Covid-19, Australia’s net overseas migration was regularly above 200,000 a year, spurring annual population growth rates above 1.5 per cent. In 2020-21, the ABS found that while Queensland’s population grew by 0.9 per cent, Victoria’s population fell by 0.7 per cent.
WA to re-open borders in February
Western Australia will re-open borders to the rest of Australia from February 5 next year, the State Labor Government has announced. Premier Mark McGowan said the scheduled date of re-opening was based on WA achieving a 90 per cent rate of double vaccination for people aged 12 years and above. New testing requirements would apply, depending on the length of travel for vaccinated travellers. Double-dose vaccinated international travellers would be required to provide a test, but would not be required to quarantine on entering the state.
Regulator claims lower electricity prices in national market
Lower wholesale energy costs and smaller retailer margins are contributing to lower electricity prices, according to the Australian Competition and Consumer Commission. The ACCC said the annual cost for a retailer to supply electricity to an average residential customer had fallen $128, or eight per cent, since 2018-19. It reported that the average cost per unit of electricity supplied to residential customers was the lowest in eight years, and five years for small business customers. The ACCC analysis covers the national electricity market, which includes New South Wales, Victoria, South Australia, Tasmania, the ACT and south-east Queensland.
International travel set to rebound from record lows
International travel in and out of Australia touched record low figures in October, rivalling the slump during the first wave of the Covid-19. Australian Bureau of Statistics figures show that there were only 15,730 overseas arrivals in October, and 36,820 departures. With the lifting of travel restrictions, however, the ABS has projected almost 93,000 departures in November and 73,000 arrivals. Pre-Covid-19, Australia was recording more than two million in both arrivals and departures each month.
Passenger arrival caps remain in place
Meanwhile, National Cabinet has confirmed the caps on international air passenger arrivals, with weekly arrivals capped at 2310 people. Victoria and NSW have caps of 250 and 210 arrivals respectively, and WA 530 and SA 320 per week; Queensland has a weekly cap of 1000, with an extra 300 per week in surge capacity. Fully vaccinated Australian citizens, permanent residents, and their immediate families can travel above caps in to NSW, Victoria and the ACT, subject to home quarantine and testing requirements.