JOBS,TRADE TO LIFT BUDGET; ALP TAKES SA
Rising commodity prices, job numbers to lift Budget outlook
Next Tuesday’s Federal Budget will show a substantial improvement to the budget bottom line as a result of more Australians in work and fewer on welfare, according to Treasurer Josh Frydenberg. In a speech to the Australian Chamber of Commerce and Industry (ACCI), the Treasurer ruled out large-scale spending initiatives, warning that post-Covid fiscal settings needed to be normalised. Mr Frydenberg noted that inflation, presently at 3.5 per cent, was adding to cost-of-living pressures, and promised that the government would retain its cap on the tax take, at 23.9 per cent of tax-to-gross domestic product. At the time of the mid-year outlook in December, the projected 2021-22 budget deficit had fallen more than $7 billion to under $100 billion; strengthening commodity prices since then will flow through to the final year outcome.
Labor canvasses second Budget for 2022
Shadow Treasurer Jim Chalmers has flagged delivering another Federal Budget late in 2022, should Labor be elected at the forthcoming election. In a speech, also to ACCI, Dr Chalmers this week said Labor’s first Budget would coincide with the usual mid-year update in December, or earlier. He said his proposed Budget would target any rorts or waste identified under current spending, while seeking to grow the economy and create more jobs. Dr Chalmers also flagged that under Labor, Australia would work with other countries to ensure that multinationals paid their “fair share of tax” in Australia where they made their profits.
Labor sweeps into power in South Australia
Labor has returned to government in South Australia, securing a comfortable majority and defeating the Liberal Party after one term. Election results show that new Premier Peter Malinauskas will have at least 27 seats in the 47-seat Legislative Assembly, against potentially five Independents and 15 Liberals. But Labor is unlikely to secure a majority in the 22-seat SA Upper House, which is elected by proportional representation. The new Labor government has pledged to focus on major investment in the health sector, especially in addressing the issue of ambulance delays.
Dutton warns of Ukraine conflict cyber risk
Defence Minister Peter Dutton has warned of the cyber implications of the Ukraine invasion, saying that Australia, as a western democracy, was a “huge target in the modern age.” Opening the Canberra headquarters of the Australian Signals Directorate, Mr Dutton said a Russian cyber-criminal group had been behind 13 successful ransomware attacks on Australia, including those on critical infrastructure. He said that in 2020-21, the Australian Cyber Security Centre reported more than 67,000 cyber-crime reports; a full 25 per cent of reported cyber incidents were associated with critical infrastructure or essential services.
Taylor moves to head off gas shortages and price hikes
Industry, Energy and Emissions Reduction Minister Angus Taylor has moved to accelerate investment in priority gas infrastructure projects to prevent gas supply shortages. Mr Taylor said an additional $50 million would be provided for seven priority pipeline, expansion and storage projects in Queensland, Victoria and the Northern Territory, as well as down the east coast. He said Russia – which accounted for 32 per cent of total European and UK gas consumption – had created an unacceptable risk to global gas security through its invasion of Ukraine. Gas prices in Europe and the UK had increased by more than 300 per cent over the past months. According to the Minister, Australia’s gas prices remained 75 to 80 per cent below these international highs.
Budget cash to lure tourist return
Ahead of the March 29 Federal Budget, the Morrison Government has focused on north Queensland to kickstart a return of international tourists. Scott Morrison pledged an additional $60 million for the tourism sector to attract more international visitors; $15 million would be directed to tourism in North Queensland and $45 million to targeted activities delivered by Tourism Australia.