Vaccine step-up as Budget hopes dampened
PM steps up nationwide vaccine rollout
Prime Minister Scott Morrison this week reaffirmed his Government’s commitment to offer Covid-19 vaccination to all Australians by the end of October. The PM used his National Press Club address to outline the $6.3 billion plan to vaccinate more than 25 million people, with 140 million doses on order, starting from late February. Older and more vulnerable Australians would be vaccinated first, including at hospitals, GP clinics, health centres and pharmacies. Mr Morrison said that unlike other jurisdictions around the world, Australia’s Therapeutic Goods Administration had approved the Pfizer vaccine for people aged 16 and over via a formal, not an emergency, approval process.
Record resident exodus from capital cities
Australia’s capital cities experienced a record quarterly net loss of 11,200 people through internal migration in the September 2020 quarter, according to the Australian Bureau of Statistics (ABS). Sydney (net loss of 7,782 people) and Melbourne (-7,445) recorded the highest net loss of people, while Brisbane had a net gain of 3,215 people through internal migration. NSW and Victoria were the only states to record net losses. While immigration stalled, internal migration levels were at their lowest level since September 2014. In previous years, Sydney and Melbourne were the dominant destination points for migrants.
No ‘blank cheque’ Budget as economy recovers
When the Federal Budget is delivered in May, it will be less than 12 months before the next Federal Election. Judging by the Prime Minister’s comments at the National Press Club, the budget won’t be full of election sweeteners. Scott Morrison said it would not be a ‘blank cheque budget’, relying instead on the ongoing benefits of more than $200 billion in direct economic support provided in the 2020 Budget, as well as legislated tax concessions and investment incentives.
Door remains closed to international students
New Federal Education and Youth Minister Alan Tudge this week dampened the hopes of universities that Australia would re-open entry for international students, warning that returning citizens remained the first priority. He said quarantine restrictions remained in place, even for source countries with a current low level of cases, such as China. Mr Tudge said States were free to propose entry of international students, provided it was approved by the Chief Health Officer and that it did not disadvantage returning Australians.
Healthy trade surplus as exports jump
In a positive economic indicator, Australia’s international trade balance continues to be in the black, with the seasonally-adjusted trade surplus for December hitting $6.78 billion. ABS figures show monthly exports rose three per cent, to $37.26 billion, while imports fell two per cent to $30.48 billion. The trade surplus was pushed up by a healthy 18 per cent rise in the export of rural goods and steady increases in the minerals sector. Meanwhile, the services sector – which includes tourism – continues to struggle, with service imports and exports still around half to two-thirds that of pre-Covid 19 levels.