PM stands by travel plan; trade fillip

PM stands by overseas travel plan

Prime Minister Scott Morrison has confirmed that Australians may be able to travel overseas by Christmas, should the nation reach a full vaccination rate of 80 per cent. The PM said Phase C of the national re-opening plan allowed for vaccinated Australians to travel overseas and return, via a home quarantine process that is now being trialled in South Australia.

Economy grows ahead of lockdown return

Australia is poised to avoid a technical economic recession, provided New South Wales and Victoria emerge from their Covid-19 lockdowns in November. National accounts figures released this week by the Australian Bureau of Statistics show that the economy grew by 0.7 per cent in the June quarter, mainly due to strong export performance and rebounding household consumption. Gross domestic product grew by 1.4 per cent in 2020-21. A recession is defined as two successive quarters of negative growth; the economy is likely to contract in the September quarter after stay-at-home orders were imposed in NSW and Victoria from late June.

Federal support to wind down after vaccination threshold

Treasurer Josh Frydenberg has reiterated that the level of Federal economic support provided during the present lockdowns in NSW, Victoria and the ACT will not continue once full vaccination targets of 70 and 80 per cent are met. He said support to affected states and territories would continue until the 70 per cent threshold was reached.

University revenue rising as capital investment slumps

Total revenue of Australia’s university sector rose 13.4 per cent ($0.9 billion) in the June 2021 quarter, while spending on capital investment programs continued to fall sharply. Government finance statistics published by the Australian Bureau of Statistics reveal that higher revenue was driven by current grants and subsidies, while new capital purchases in the quarter fell 24.5 per cent and operating expenses fell by two per cent. Redundancies made in prior quarters has reduced wage and salary levels; after the outbreak of Covid-19, university sector quarterly revenue fell by up to almost 10 per cent and quarterly capital investment by up to 42 per cent as new infrastructure projects were cancelled or postponed.

Record trade surplus boosts economy

International trade has continued to prosper during the extended Covid-19 lockdown, with Australia posting a record monthly trade surplus of $12.1 billion, seasonally adjusted, in July. ABS figures show exports of goods and services rose five per cent to almost $46 billion for the month. While the quarterly export and import of goods has strongly surpassed pre-Covid levels, trade in services (which includes inbound and outbound tourism) is around half that of 2019.