Hard ball on lockdowns; Tas upbeat
PM ups ante on lockdown release
Prime Minister Scott Morrison has stepped up the pressure on states and territories to open up their economies once full Covid-19 vaccination rates reach 70 to 80 per cent. Mr Morrison has stood firm on the re-opening plan agreed by the National Cabinet, based on what he described as the best possible medical, scientific and economic advice. He said lockdowns that continued after the level of 70-80 per cent came at more cost than gain.
Tasmanian budget upbeat on economic growth
Tasmania has delivered a state budget that forecasts healthy economic growth of four per cent in 2021-22 and a return to surplus. Premier and Treasurer Peter Gutwein on Thursday delivered a Budget that forecast a net operating deficit of $690 million in 2021-22, recovering to a surplus of $39 million in 2023-24 (less one-off Federal capital project funding). Unemployment is predicted to remain at 5.5 per cent. While Tasmania has been affected by the loss of interstate and international tourism, the state has remained relatively free of prolonged Covid-19 lockdowns.
Loan scheme extended for Covid-affected SMEs
As Covid-19 restrictions continue to hamper business in NSW and Victoria, the Federal Government has expanded eligibility to its recovery loan scheme for small and medium size enterprises. Treasurer Josh Frydenberg said SMEs dealing with the economic impacts of coronavirus and with a turnover of less than $250 million would be able to access loans of up to $5 million over a term of up to 10 years. The Government guarantee would be 80 per cent of the loan amount, available through participating lenders until December 31, 2021.
Capital investment on the rise
Private new capital investment in Australia has continued to rise, up by 4.4 per cent seasonally adjusted in the June quarter and aided by government budget measures to stimulate industry recovery from Covid-19. Australian Bureau of Statistics figures reveal that private investment in buildings and structures rose 4.6 per cent in the June quarter, with investment in equipment, plant and machinery rising 4.3 per cent. In a positive economic sign, the ABS forecasts that the level of private new capital expenditure is forecast to rise to $127.7 billion in 2021-22, up 12.5 per cent on its previous estimate.
Jobs, wage levels sliding under restrictions
New South Wales’ payroll job numbers fell by 3.7 per cent and wages paid by 4.3 per cent in the last two weeks of July as Covid-19 restrictions were tightened in the state. In the same period, the ABS estimated national falls of two per cent in payroll jobs and 2.7 per cent in wages paid. South Australia also registered sharp falls of 2.7 per cent in jobs and 4.6 per cent in wages paid; Western Australia was the only jurisdiction to avoid a loss in payroll jobs. Meanwhile, the ABS has recorded a 3.8 per cent increase in the number of businesses operating in Australia in 2020-21, with the Australian Capital Territory registering the highest rate of increase (5.8 per cent) of new businesses, in any state or territory.
Federal powers boosted to combat online crime
Legislation passed by Federal Parliament this week will provide more powers to national authorities to identify and disrupt on-line criminal activity. Home Affairs Minister Karen Andrews said the legislation provided the Australian Federal Police and the Australian Criminal Intelligence Commission with warrant powers to collect intelligence on harmful criminal networks operating online, as well as disrupt serious criminality. The legislation also provided powers for the authorities to effectively take over a person’s online account for the purpose of gathering evidence.