Victoria’s national payroll levy, jobless numbers down again

Victorian Budget flags higher debt, economic growth rebound

Victoria has delivered a 2021-22 State Budget that forecasts a budget deficit of $11.6 billion and steadily rising public debt levels over the next four years. Victorian Treasurer Tim Pallas is banking on economic growth of 6.5 per cent in 2021-22, predicated partly on a slight recovery in population levels and the return of international students early next year. Budget papers predict a 13 per cent increase in taxation revenue, chiefly through rising property tax, insurance and gambling tax collections. The Budget has proposed that a mental health levy of up to one per cent of payrolls apply to Victorian businesses with more than $10 million in wages nationally. Net debt is forecast to rise from $77.5 billion in 2020-21 to $156.3 billion in 2024-25, or up to 26.8 per cent of Victoria’s gross state product.

Kiwi returns lift travel numbers

Australia’s international travel numbers took a sharp jump in April, courtesy of the re-opened travel bubble with New Zealand. Provisional estimates issued by the Australian Bureau of Statistics recorded almost 55,000 arrivals in April, up 66 per cent on March, with 65,100 departures, or a monthly increase of more than 100 per cent. NZ citizens comprised 37 per cent of both arrivals and departures.

PM shuts down calls for border re-opening

Meanwhile, Prime Minister Scott Morrison has rebuffed calls for Australia to re-open its international borders, while hinting at relaxed travel restrictions for vaccinated Australians. He said Australia’s level of restrictions had avoided the loss of 30,000 lives, when compared to the average fatality rate of like-countries in the Organisation for Economic Co-operation and Development (OECD).

Unemployment rate falls post JobKeeper

Australia’s unemployment rate dropped to 5.5 per cent in April, down from the 5.7 per cent recorded during the last month of JobKeeper, which ended on March 28. Australian Bureau of Statistics seasonally-adjusted estimates also show that the rate of under-employment – those who want to work more hours – dropped from eight per cent to 7.8 per cent, the lowest level since 2014. In December 2019, a month before the start of coronavirus-related restrictions, unemployment was at five per cent, before peaking at 7.4 per cent in July last year.

Lowest annual wage growth for more than two decades

Wages in Australia grew 1.5 per cent in the year to the end of March, the lowest rate of annual growth for more than 20 years. ABS figures show that wages increased annually by 1.4 per cent in the private sector and by 1.5 per cent in the public sector; the education and training sector recorded wage growth of 2.2 per cent, while the rental, hiring and real estate services registered annual wage growth of just 0.4 per cent. For the March quarter, total seasonally-adjusted wage growth was 0.6 per cent.

Tudge puts heat on universities to lift attendance levels

Federal Education and Youth Minister Alan Tudge has challenged universities to lift the level of on-campus attendance if they want to see the full return of international students. In a media interview, Mr Tudge said he was hearing reports from students that they were doing only one contact hour a week, noting that the Federal Government wanted first to see the campus return of Australian students before approving the return of international students. He also noted there were around 150,000 students who were studying offshore in an online capacity who would like to come to Australia to complete or continue their studies.