State budgets’ rosy outlook, AI vision unveiled
NSW budget flags return to surplus
New South Wales has forecast a deficit of $8.6 billion in its 2021-22 state budget, with a 64 per cent increase in net debt, primarily to fund capital infrastructure programs. Treasurer Dominic Perrottet has flagged a $466 million surplus in three years, aided by increased revenue, payroll tax relief for business and the return of international students. The budget also commits to major reforms in the property tax regime and in road user charges, to accompany the take-up in electric vehicles.
SA upbeat on economic growth
In South Australia, Treasurer Rob Lucas delivered a budget based on a rapid turnaround in post-Covid economic growth and major payroll and land tax relief. The SA Budget forecasts a $1.4 billion deficit for 2021-22 and a return to surplus from 2022-23, with net debt rising from $26 billion to $33.6 billion in 2024-25. In 2020, the SA Government delivered a $4 billion stimulus package, resulting in estimated economic growth of 2.25 per cent in 2020-21 and employment levels higher than pre-Covid 19.
Porter unveils priority areas for artificial intelligence
Federal Industry, Science and Technology Minister Christian Porter has released Australia’s first artificial intelligence (AI) action plan, outlining four priority areas for the development and adoption of AI technologies. Funded by a $124 million Budget allocation, the Government is creating a national artificial intelligence centre to coordinate Australia’s AI expertise and capabilities, as well as establishing a $24.7 million graduate program to train home-grown, job-ready AI specialists. The action plan also provides $33.7 million to support Australian businesses in partnering with government, and $12 million in grants to promote AI solutions in regional areas.
Payroll jobs, retail trade drop under lockdown
As New South Wales re-introduced Covid-19 restrictions, two statistics provided a reminder of the post-JobKeeper economy. First, Australia’s job and wage levels fell during Victoria’s three-week lockdown that began in late May. Australian Bureau of Statistics figures for the two weeks from May 22 show that the number of payroll jobs nationally fell 0.9 per cent, and 2.1 per cent in Victoria, with total wages falling 1.6 per cent nationally and 2.8 per cent in Victoria. Meanwhile, national retail spending rose just 0.1 per cent in May, with ABS seasonally-adjusted figures showing a 1.5 per cent fall in retail trade in Victoria; retail trade had risen nationally by 1.1 per cent in April.
Iron ore, coal and meat exports driving record trade surplus
Australia has registered a record $13.3 billion trade surplus in May, driven by surging iron ore and meat exports to China and rising coal shipments to South Korea and Taiwan. ABS preliminary figures revealed that while imports rose one per cent in the month, exports jumped 11 per cent to $39.2 billion. Iron ore and meat exports to China rose 20 per cent and 28 per cent respectively in May. With $16.4 billion of exports and $6.7 billion in imports during May, China remains Australia’s largest trading partner; in May, Japan was the second-largest export destination ($4 billion) and the United States ($3.2 billion), the second-ranked import source.