Federal Budget reveals the government’s grim Covid prediction

This year’s budget revealed a grim prediction about Covid in the winter months, including the return of social distancing restrictions.

Australia is preparing for a Covid surge over the winter months which could spark the return of social distancing rules, according to the Federal Budget.

A wave of cases is expected to occur this winter, causing rising levels of absenteeism and disruptions to supply chains, the papers revealed.

“Community transmission of COVID-19 will continue to occur. A further Omicron wave is assumed to occur over winter 2022,” the Budget paper stated.

While it was hoped that public health measures such as vaccines would work to reduce Covid’s impact, one scenario considered by the government was for a more severe strain than Omicron to emerge.

“In this scenario, a more virulent variant of concern emerges in the middle of 2022. This outbreak coincides with the winter flu season and is assumed to lead to higher numbers of cases for a longer duration and more severe illness than the initial Omicron wave,” the Budget said.

The Federal Government is making planning allowances for a major spike in Covid cases over winter. Picture: NCA Newswire / Gaye Gerard

“Baseline” public health measures such as physical distancing and density limits would be reimposed nationally for the duration of the outbreak resulting in weaker consumer activity.

Australia’s economic activity would be about $11billion lower in 2022-23 than in the forecasts under restrictions, while unemployment would be up a quarter of a percentage point higher.

“Beyond winter, it is assumed that Australia will continue to experience intermittent, localised waves of Omicron, or other new COVID-19 variants,” the papers said.

“However, it is assumed that high vaccination rates and improved medical treatments, together with continued community adaptation to COVID-19, will see the economic impact of future outbreaks continue to moderate.”

According to the budget, the government will provide $1 billion over two years for the continued distribution and uptake of Covid-19 vaccines across Australia.

The government will spend $1 billion over the next two years on getting Australians fully vaccinated. Picture: NCA NewsWire/Bianca De Marchi

Funding includes $800.8 million over two years for the administration of primary and booster doses in primary care settings, pharmacies, aged and disability care facilities, and Aboriginal and Torres Strait Islander and culturally and linguistically diverse communities

It is assumed Australia’s international borders will remain open to migrants and fully vaccinated tourists.