July 2020 Economic and Fiscal Outlook has been saved
July 2020 Economic and Fiscal Outlook
The economic impact of the COVID-19 crisis
On 23 July 2020, the Treasurer released an update on Australia’s Economic and Fiscal Outlook. The update provided details of the impact of the COVID-19 pandemic on Australia’s economy and fiscal position, taking into account the stimulus measures introduced, including the JobKeeper program. This follows announcements on 21 July 2020 in respect of the outcomes of Treasury’s review of JobKeeper and the Coronavirus Supplement payment.
The key announcements are as follows:
- The budget deficit stands at $85.8 billion for 2019-20. This will more than double for 2020-21 to $184.5 billion
- The unemployment rate is expected to peak at around 9.25 per cent in the December 2020 quarter
- The JobKeeper scheme will be extended to 28 March 2021, with employer eligibility tightened, payments tapered down over the period and different rates for employees based on hours worked in the test period
- No further stimulus or tax measures were announced in the update. It is expected that the Government will make further announcements on stimulus or tax measures in the Budget on 6 October 2020.