Federal budget 2021 Gold Coast: Everything you need to know
Treasurer Josh Frydenberg has been accused of “abandoning” the Gold Coast after delivering a federal budget that largely snubbed the city’s biggest industry. FULL REACTION >>> VOTE NOW
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TREASURER Josh Frydenberg has been accused of “abandoning” the Gold Coast after delivering a federal budget that largely snubbed the city’s biggest industry.
Mr Frydenberg announced a further $2.1 billion would be spent on “targeted” support for aviation and tourism, including the already announced 800,000 half-price airfares scheme.
But there was little else for the city’s once $6 billion industry which directly supports more than 3500 Gold Coast businesses.
Mayor Tom Tate said he was “underwhelmed” by the lack of significant new tourism funding.
“It is disappointing because it should be recognised that tourism is the backbone of our city,” he said.
“I was underwhelmed, I was anticipating more support for the industry.
“However, with the international borders being closed and not knowing exactly when they will open, I can understand why spending in this area was curtailed.
“I expected it will dramatically increase as we move forward.”
Gold Coast-based Senator Murray Watt said the budget was one which had abandoned both tourism and the Glitter Strip.
“This is a sugar rush budget designed to win an election and a political fix to paper over eight years of neglect,” he said.
“All it does is fix political problems of the government’s own making in childcare, aged care and support for women.
“This budget takes Queenslanders for granted – we get the lowest infrastructure spend per person in the country and we will get half of the new infrastructure funding that NSW, Victoria and South Australia get despite being the most decentralised state.
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“There was nothing new for one of Australia’s fastest growing cities, while the tourism industry has been abandoned with nothing new announced to help it get back on its feet.”
Gold Coast-based Minister Stuart Robert said the budget delivered strongly for the city in the wake of the pandemic.
“Our performance on both the health and economic fronts has been world leading and the Morrison Government’s unprecedented support has seen our nation perform better than almost every developed nation in the world,” he said.
“The Morrison Government has delivered a budget that meets the needs of Australians and sets out a path forward to secure Australia’s comeback post-COVID.”
Budget documents reveal the federal government does not expect international borders to begin reopening outside of the trans-Tasman bubble until mid-late 2022.
“Inbound and outbound international travel is expected to remain low through to mid-2022, after which a gradual recovery in international tourism is assumed to occur,” the documents read.
“The continued economic recovery will rely on the effective containment of COVID-19 outbreaks both here and abroad and will be a key factor in the timing of the reopening of international borders, which could weigh on the outlook for the tourism and education sectors.”
However, with efforts largely focused on boosting the domestic market, the budget warns the lucrative tourism market will take a significant hit once international borders reopen and Australians rush to holiday overseas.
“As international borders reopen and international tourism gradually returns over 2022, spending from incoming tourists is expected to be more than offset by Australians spending more on overseas travel and less on domestic consumption,” the documents read.
“However, the gradual arrival of international students and migrants over 2022 will support growth, particularly for education services exports and consumption, and assist in filling skill gaps.”
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Budget documents reveal Tourism Australia funding will not return to pre-COVID levels for nearly five years
The nation’s peak marketing body will see its funding for promoting Australia overseas drop this financial year from $139.4 million to $135.3 million.
It will gradually increase again over forward estimates until it reaches pre-pandemic levels again in 2024-25.
Destination Gold Coast chief executive Patricia O’Callaghan said the budget offered a mixed bag for the city.
“We believe there is more which could be done to support the industry before borders open and we look forward to discussing this with our local members,” she said.
“There are a number of initiatives we do welcome and this includes the greater support for small business.”
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COVID-19 will cast a decade-long shadow over the economy, with the federal budget not set to return to surplus until 2032.
Treasurer Josh Frydenberg brought down his third budget on Tuesday night with a raft of policies designed to help the country spend its way out of the crippling pandemic downturn and set the stage for the next federal election.
Mr Frydenberg framed the budget as a blueprint for recovery, heavily focusing on boosting the labour market and post pandemic growth.
The Treasurer said Australia was “coming back”, however he warned there would be a long road to recovery.
As a result of COVID-19 the budget deficit will surge to $161 billion in 2021-22 before falling to $57 billion in 2024-25.
Based on current expectations, it will return to surplus in 2032, around the time southeast Queensland is expected to host the Olympic Games and 24 years after the last surplus was announced by then-treasurer Wayne Swan in 2008.
Net debt will increase to $617.5 billion or 30 per cent of GDP this year and peak at $980 billion or 40.9 per cent of GDP in June 2025.
The unemployment rate sits at 5.6 per cent.
Mr Frydenberg said Australia had survived the worst of COVID-19 because it had entered the crisis from a position of strength but warned it had come at a “significant and unavoidable cost.”
“We are better placed than nearly any other country to meet the economic challenges that lie ahead,” he said in his budget speech.
“Consumer sentiment is at its highest in 11 years, business conditions reached record highs and more Australians are in work than ever before.
“Australia’s economic engine is roaring back to life.”
As promised for the Gold Coast, more than $126 million has been committed to funding the light rail’s stage 3 Broadbeach to Burleigh connection.
The federal funding, along with state funding expected to be committed next month, will allow construction of the project to begin this year.
But there was little else in funding for the Gold Coast, with the city not mentioned during Mr Frydenberg’s speech.
Instead the focus was on national initiatives to boost the economy post-COVID through tax cuts.
“This pandemic is not over and for as long as the virus persists, so will we,” Mr Frydenberg said.
“So tonight, we go further, announcing that more than 10 million low- and middle-income earners will benefit from a new and additional tax cut.
“Low and middle-income earners will receive up to $1080 for individuals or $2160 for couples. More of their money in their pockets to spend across the economy, creating jobs.”
Key points of the budget include:
* $291 billion or 14.7 per cent of GDP in direct economic support for individuals, households and businesses impacted by COVID-19
* $20.7 billion in tax relief for businesses over the forward estimates by extending current schemes. Includes a program that lets businesses write off the entire cost of new machinery and equipment until June 30, 2023.
*$17.7 billion to reform the aged care system.
* $1.9 billion in extra funding for the rollout of coronavirus vaccines this financial year
Mr Frydenberg said Australia was “well on the road to recovery”.
This pandemic is far from over but our economy is forecast to grow by 1 ¼ per cent in 2020-21, rising to 4 ¼ per cent in 2021-22,” he said.
“Employment is at a record high, with 75,000 more Australians in jobs than before the pandemic.
“This budget will help to create more than 250,000 more jobs by the end of 2022-23.”
MONDAY: PM NEEDS TO ‘GENUINELY BACK’ GOLD COAST
PRIME Minister Scott Morrison needs to “genuinely back” the Gold Coast in Tuesday’s federal budget, according to the city’s only Labor MP.
City leaders have called for a wide range of projects which must be prioritised in the Coalition Government’s eighth budget, with small business support measures, social housing and infrastructure for the 2018 Commonwealth Games all topping the list.
Mayor Tom Tate said the Gold Coast was Australia’s small business capital and called for greater support to make them flourish again.
“I strongly encourage a small business focus in the federal budget as small business Australia-wide carried the burden of the downturn from COVID-19 because many small are a long way from recovery,” he said.
“Our city is Australia’s small business capital with more than 66,000 small, family owned businesses registered. Given our national economy has rebounded quicker than anticipated, post-COVID, the rewards should flow to small business.
“I also encourage the federal government to fund investment in large-scale nation building infrastructure including high-speed rail in the SEQ corner and bringing forward capital works expenditure on major roads, should we be successful in being named host destination for the 2032 Olympics.’’
Already announced extra funding for light rail stage 3 will be in the budget while Treasurer Josh Frydenberg will unveil a $1.7 billion injection into the childcare sector.
Gaven MP Meaghan Scanlon has called on the government to fix the “broken” housing and aged care systems, labelling the budget a test of his faithfulness to the Gold Coast.
Ms Scanlon said: “The Gold Coast is Australia’s sixth largest city and Tuesday will be a test of whether or not the LNP take this city for granted or genuinely back investment in our community.
“Now is the time for Scott Morrison to listen to our community and fund the recommendations of the Aged Care Royal Commission.
“They need to implement minimum staffing ratios, raise the minimum wage for our hardworking aged care staff and be transparent about government funding in the sector.
“Too many Gold Coast families have been let down by a broken system.
“We also need genuine action on housing affordability.”
She also appealed to the city’s Federal MPs to “step up and make sure Canberra contributes its fair share”.
Other MPs across the city are hoping for emergency housing, better infrastructure, and heavy rail connecting the Gold Coast Airport and Varsity Lakes.
The federal budget will be handed down on Tuesday night.
Federal Housing Minister Michael Sukkar has already promised $124.7 million Australia-wide to let states “meet their social and community housing responsibilities”.
The federal government has also promised to help fund the 2032 Olympic Games with the state.
Emergency housing, improved road infrastructure and support for tourism also topped wishlists for Gold Coast state MPs.
State Opposition leader and Broadwater MP David Crisafulli said the budget needed to be “the catalyst for protecting the lifestyle Queenslanders love” through delivering infrastructure.
“Too much of the State Government’s road and transport spending is in the never-never and I’m hopeful federal infrastructure dollars can jolt the State Government into earlier action,” he said.
“This will ensure jobs for Queenslanders, but it’s also essential to alleviate the growing frustration of Queenslanders who are stuck in traffic, or forced to drive on unsafe roads daily.”
Burleigh MP Michael Hart told the Bulletin he hoped to see better funding for mental health.
“My request of the federal government is for specialised funding on two areas,” he said.
“One, to remediate and supply suitable infrastructure for the Burleigh headland walking trail.
“And two, increased funding for mental health, especially a specialised facility for eating disorders and education around that.”
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