Queensland debt jumps, UK free trade deal

Queensland budget banks on growth, interstate migration

Queensland has delivered a large-spending state budget based on resurgent economic growth and rising interstate migration. Budget papers forecast a deficit of $3.4 billion in 2021-22 and annual economic growth of 3.25 per cent this financial year. Treasurer Cameron Dick forecast that Queensland would return to a budget surplus in 2024-25, but net debt was forecast to rise to $42.5 billion by then, up from $14 billion in 2019-20. The budget projections are borne out by the latest Australian Bureau of Statistics’ population figures, which showed Queensland’s population rising 1.1 per cent in the year ending 31 December 2020, at the expense of states such as Victoria (0.01 per cent growth). Australia’s population rose by just 0.5 per cent for the year (1.5 per cent in 2019).

UK free trade agreement set to remove agricultural tariffs

Prime Minister Scott Morrison has revealed details of a proposed free trade agreement with the United Kingdom, promising cheaper imports and greater access for Australian agricultural products. On a visit to the UK, the PM said all tariffs on British imports would be eliminated within five years, with the agreement proposing a relaxation on movement of professionals and temporary visa workers between the two countries. But some Australian exports, such as beef and sheepmeats, face a 10-year wait for UK-imposed tariffs to be fully eliminated.

Farm production hits record

Australian agricultural production is set to reach a record $66.3 billion for 2020-21, driven by a larger grain harvest and rising livestock prices. The Australian Bureau of Agricultural and Resource Economics and Sciences reported that production was up eight per cent from the drought year of 2019-20. ABARES forecast, however, that the value of production was expected to fall slightly to $65 billion next financial year, with predicted price reductions for cattle, lamb, wheat, barley and sugar. It noted that Australia had diversified its export markets in response to trade restrictions – such as on barley - imposed by China.

Trans-Tasman bubble boosts international trips

International travel in and out of Australia has recorded a small bounce, thanks to the establishment of the travel bubble with New Zealand. Overseas visitor arrivals to Australia increased almost 172 per cent to more than 22,600 trips in April, according to figures released by the Australian Bureau of Statistics. Australian resident returns from short-term overseas trips jumped 83 per cent to almost 17,000 trips. Pre-Covid 19, the number of monthly visitor arrivals and resident returns each peaked at more than one million.

Unemployment back at pre-Covid levels

Australia’s unemployment rate has returned to pre-Covid 19 levels, with the seasonally-adjusted jobless rate of 5.1 per cent for May back to the level of February 2020. In states such as Western Australia and Victoria, unemployment in May fell to below five per cent. ABS figures show that the rate of underemployment - of those who wish to work more hours - fell to 7.4 per cent, its lowest level since early 2014.

International co-operation on ransomware

Australia has welcomed a commitment by the G7 leaders of the largest western economies to work together in combating the rising threat of ransomware attacks. Defence and Home Affairs Ministers Peter Dutton and Karen Andrews said Australia would work with international partners to identify and disrupt ransomware criminal networks, which threatened the digital economy.