Jobless rate targeted to lift wages
Treasurer targets lower unemployment to lift wage levels
Federal Treasurer Josh Frydenberg has pledged to reduce the rate of unemployment to less than five per cent ahead of major repairs to the budgetary position. In a major-pre-Budget address, Mr Frydenberg said the government would not undertake any “sharp pivots towards austerity” to reduce the budget deficit. He said inflation and wage levels would not accelerate until the unemployment rate – 5.6 per cent in March – fell below five per cent. That stance signals a round of targeted spending in the May 11 Budget, which may be the last budget before the next federal election.
Education expenses jump as revenue slumps
Governments in Australia spent more than $114 billion on education expenses in 2019-20, while revenue dropped during the outbreak of Covid-19. Figures from the Australian Bureau of Statistics show that governments spent $58.6 billion on school education and $41.5 billion on universities and TAFE. Expenses rose 8.6 per cent in 2019-20 while revenue fell 2.2 per cent due mostly to bans on international student arrivals, after revenue rises of 12.4 per cent in 2017-18 and 9.1 per cent in 2018-19.
Tudge cool on state plan for international students
Federal Education and Youth Minister Alan Tudge has given a cautious reception to plans by the Victorian Government to re-admit international students as “economic arrivals”. Mr Tudge noted that India was the second largest source of international students, but the Federal Government would need to consider official health advice given India’s current rates of Covid-19. The Victorian Government reportedly wants to allow the entry of 120 international students per week, above the quarantine limits.
Annual inflation rises 1.1 per cent
Australia’s inflation rate rose 0.6 per cent in the March quarter, according to latest data from the Australian Bureau of Statistics. The Consumer Price Index measured annual inflation at 1.1 per cent, which includes the June 2020 quarter CPI of -1.9 per cent during the first months of the coranavirus outbreak. Automotive fuel rose 8.7 per cent in the March quarter, while government home-building assistance schemes helped to reduce new dwelling costs.
Federal reinforcements for NT defence bases
Prime Minister Scott Morrison has reaffirmed his Government’s commitment to strengthening the defence presence in the Northern Territory, announcing a $747 million upgrade to four key training areas and ranges in the region. The PM said the investment would support greater engagement with the US and Indo-Pacific allies, to conduct military exercises. He said that in total, the Government was spending almost $8 billion in defence capital infrastructure over the next decade in the Northern Territory.
Liberals seek third term in Tasmania
Tasmania will go to the polls this Saturday (May 1), with Premier Peter Gutwein’s Liberal Government seeking to retain office with a fresh majority. At the last election in 2018, the Liberal Party – then led by Will Hodgman – was returned with a one seat majority in the state’s Lower House, but a subsequent defection resulted in minority status and the call to an early election. Under Tasmania’s multi-member electoral system, large majorities are rare in the 25-seat Parliament. Both the Liberal and Labor leaders say they won’t serve as Premier in a minority government.