Australians should be rejoicing that the pandemic financial fallout isn’t as bad as first thought
The financial fallout from the coronavirus pandemic on the Australian economy isn’t as bad as first thought. Surely that is something Australians can only be too happy to see.
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The financial impacts of the pandemic are not as severe as first thought, so surely this is a cause for celebration?
Well, actually, that’s not how all Australians see it.
The JobKeeper cost estimate that was way off and the dumping of free childcare are some of the issues arising in recent weeks.
All of us have had to endure insanely-tough lockdown rules that have left our nation’s economy badly damaged and many businesses shattered.
Treasurer Josh Frydenberg this month confirmed we are already in a recession, but despite this we’ve seen some glimmers of hope among the bad economic news.
Treasury estimates unemployment will be down to 8 per cent by September – previous forecasts were 10 per cent.
The Federal Government has also ruled out increasing the GST from 10 per cent.
And, of course, we had the JobKeeper wage subsidy estimates substantially miscalculated to the tune of $60 billion. It will now cost $70 billion, not $130 billion.
Labor Senator Katy Gallagher, chair of the COVID-19 Senate Committee, has demanded answers about the error.
“What we were trying to understand is how they could get the numbers so wrong for so long,” she said.
But put it this way: sure it’s an estimate that was way off but shouldn’t it be one we are pleased about – this is $60 billion that the taxpayer won’t have to pay back.
Less of a burden on hardworking Australians.
But that doesn’t seem to be how Ms Gallagher sees it – she’s questioned why some groups including casuals missed out on JobKeeper and quizzed whether they would now be covered given the numbers error.
Taxpayer-funded free childcare is also being wound back, but let’s not forget it was only ever implemented to be a temporary measure.
Childcare fees will resume from July 13 and the JobKeeper payment for the childcare sector workers will end on July 20.
Instead, childcare services will receive a transition payment estimated at 25 per cent of revenue brought in by fees.
Of course winding this back and eventually cutting it off was always going to be unpopular, but again this is a massive cost that taxpayers are burdened with.
We have plenty of childcare groups and members of the Federal Opposition furious at this move too.
Prime Minister Scott Morrison had previously said the six months of JobKeeper would be guaranteed until September.
And sure, it’s never great when these statements are replayed only to prove the words said back at the time now no longer stand.
We’ve flattened the curve at a much faster pace than was ever expected, hence why the economy is gradually trying to resume to some normality sooner than first thought.
Surely that is something Australians can only be too happy to see.