Last-minute industry aid as JobKeeper closes

Export strength driving economic recovery

Australia continues to post healthy trade surpluses, recording in February a surplus of above $8 million for the third consecutive month. Preliminary data from Australian Bureau of Statistics show that exports grew by $502 million (two per cent), led by major shipments of cereals to its primary wheat export markets of Indonesia and Vietnam. But imports in February rose $577 million (two per cent), driven by a $705 million (24 per cent increase) in road vehicle imports, leading to a trade surplus of $8.1 billion. A 12 per cent drop in iron ore exports to China offset the agricultural export performance.

JobKeeper draws to a close

Australia’s JobKeeper scheme, announced almost 12 months ago, will conclude on Sunday, March 28, after providing around $90 billion during the Covid-19 response. Federal Treasury Secretary Dr Steven Kennedy told Senate Estimates hearings this week that more than 3.8 million individuals were supported during the first phase of the scheme from March to September 2020. Dr Kennedy said it was estimated that around 1.1 million individuals would be supported by JobKeeper in the current March quarter, and between 100,000 to 150,000 JobKeeper recipients might lose employment, but also may be able to find jobs in the rising labour market.

$265 million support packages for arts and travel sectors

Ahead of the March 28 conclusion of JobKeeper, the Federal Government has allocated further assistance for the arts and entertainment sector and for travel agents. Treasurer Josh Frydenberg and Arts Minister Paul Fletcher announced an additional $125 million for around 230 projects and up to 90,000 jobs to organise festivals, concerts, tours, productions and events, plus a further $10 million to provide crisis support to artists and other workers in the creative sector. On March 19, Tourism Minister Dan Tehan announced a further $130 million in assistance to travel agencies.

Victoria fixes tax on electric vehicles

During February, ABS trade figures (see above) showed that the importation of electric vehicles rebounded $104 million, or 485 per cent, to $125 million, while hybrid imports rose $95 million, or 101 per cent, to $190 million. Meanwhile, the Victorian Government has announced that it will impose a 2.5 cents per kilometre charge on electric and other zero emission cars. The charging regime on Victorian-registered vehicles will be effective from July 1 this year, and will include a 2c/km charge on hybrid vehicles. The Government said the new charge would help to fund road projects, normally funded via fuel excise.

Retail trade staggers in February

Australian retail turnover fell again in February, driven by five-day Covid-19 lockdowns in Western Australia and Victoria. Preliminary trade figures released by the ABS showed that national retail turnover dropped 1.1 per cent during the month, with falls in Victoria (four per cent) and WA (six per cent) offset by recovery in retail trade in New South Wales and Queensland.