‘No question’ Alfred will significantly impact economy, says Albanese

Prime Minister Anthony Albanese says severe weather system Alfred will significantly impact the economy, even after it was downgraded to an ex-tropical cyclone.

On Friday, Albanese confirmed plans for an April 12 election had been dropped and voters would instead head to the polls in the first weeks of May to avoid distracting from the recovery effort of the natural disaster.

While Alfred was downgraded to an ex-tropical cyclone on Saturday ahead of its landfall north of Brisbane, winds were still moving at 85km/h as towns such as Lismore braced for widespread flooding.

Prime Minister Anthony Albanese has scrapped plans to hold a general election in April.Credit: Alex Ellinghausen

“The impacts are already being felt, and there is worse to come in the hours ahead, we must remain vigilant,” Albanese told a press conference in Canberra’s National Situation Room on Saturday.

The coming weeks will be a test for federal Labor, as it changes course from a planned April election to now focusing on recovery from Alfred’s aftermath and delivering a budget on March 25.

Throughout the week, Albanese knocked back questions on the election timing as he repeated that his focus was on emergency management. Asked on Saturday whether the budget would have more cost-of-living relief, the prime minister shut down any political speculation.

“I’m focused on this issue,” he said, referring to the weather.

“The March 25 budget will be on March 25, as we foreshadowed last year.”

The federal government stands ready to provide the disaster recovery payment of $1000 for adults and $400 for children in need of immediate help. The prime minister also announced on Thursday $1 million in recovery grants to every local council affected by Alfred.

Albanese conceded the ex-tropical cyclone was already affecting the economy and the government would have a full assessment in coming days.

“This will have an impact on the national economy. There’s no question about that,” he said. “Already, it’s having an impact. Businesses are closed, people are unable to go to work.

“The human impact is one thing. Environmental impact is significant, but the economic impact is as well. We will be making that assessment in the coming days.”

This masthead reported on Friday that energy bill relief could be a major part of the coming budget, as a surprise revenue gain could help extend the government’s $300 energy bill rebate set to end in June.

The federal cabinet’s expenditure review committee has completed most of its work on budget policies, which have been subjected to full Treasury costings, so Treasurer Jim Chalmers and Finance Minister Katy Gallagher have authority to finalise the measures with Albanese.

The prime minister would have had until close of business on Monday to call an election for April 12 and ensure a campaign of at least 33 days, as required under the Constitution.

Albanese will instead call the election for May 3, 10 or 17. Other dates in April have been ruled out because of the Easter and Anzac Day long weekends.

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