PoliticsNow: Josh Frydenberg defends $4bn young wage subsidy scheme
Josh Frydenberg has hit back at claims the $4bn scheme will be used to replace older workers, insisting a ‘double-barrel’ eligibility test will ensure new jobs are created.
- Frydenberg defends $4bn wage subsidy
- Budget for women who ‘work, pay tax, want jobs’
- Urgent investigation into Sydney cases
- Three cases break NSW run
- Victoria records 6 cases
- PM: More jobs whether you’re 55 or 25
- 11 million to receive tax cuts
Welcome to our rolling news coverage for Wednesday, October 7.
Treasurer Josh Frydenberg has hit back at claims his $4bn wage subsidy scheme will be used to replace older workers . Scott Morrison says his pandemic budget is geared towards women who pay tax, run businesses and want jobs as he faces attacks from Labor in question time.
Josh Frydenberg says he and the PM would not put out the same messages on COVID-19 as Donald Trump.
Victoria has recorded six new coronavirus cases and NSW three.
David Ross 10pm: Sydney restaurant, car centre on alert list
NSW Health has added two new locations to its list of alerts after three new cases of COVID-19 in the community surfaced on Wednesday
One of the new cases attended the Ripples restaurant in Milson’s Point last Saturday from 8pm to 10.30pm.
NSW Health is contacting guests of the restaurant, but has advised that a small number of walk-in diners were not recorded.
All diners who were in this restaurant at the time are considered close contacts and must immediately get tested and isolate for 14 days from October 3, even if a negative test result is received.
A separate alert has been issued for the Mazda’s Artarmon repair centre on Campbell Street between 7.30am and 9.30am on last Friday.
Anyone who attended it at that time is a considered casual contact and should immediately isolate and get tested if they develop the slightest symptoms of COVID-19.
READ MORE: US pounces on Aussie virus tests
Geoff Chambers, Greg Brown 9.30pm: Albanese to reply with policy pitch for power
Anthony Albanese will use his first budget reply speech to roll out major economic and social policies, including productivity reforms aimed at repairing skills shortages, and to deliver a pre-election pitch to women, young families, blue-collar workers and older Australians.
The Opposition Leader, who is preparing to fight an election at the back end of next year, is expected to push an alternative jobs and training strategy and the use of local products, labour and research to drive a modern manufacturing sector and support nation-building defence industry and infrastructure projects.
In his Thursday night speech, Mr Albanese will outline Labor’s “vision” to lead Australia’s post-pandemic recovery and shift the party to a more policy-focused agenda ahead of the ALP national platform being finalised next year.
The Australian understands there will be a major announcement on childcare.
David Ross 9pm: Why PM targeted low-income earners
Scott Morrison says his government targeted its budget to low- and middle-income earners “because we know they are more likely to spend it”.
“We would never tell an Australian how to spend their own money — it is their decision — but the way we have designed and targeted these measures has been to ensure there is the right incentives to do that,” the Prime Minister told the 7.30 program on ABC on Wednesday night.
He said the short timelines of some spending commitments was a strength of his budget.
“One of the key responses we have been able to put in place this COVID recession is we haven’t baked in long-term spending. It is temporary, and it is targeted, and 90 per cent of the additional spending in this budget is in these two years,” he said.
“We saw the problems that happened before when people baked in over a decade. It is not a way to run an economy.”
READ MORE: Simon Benson: After this, the fiscal cupboard is bare
David Ross 8.40pm: Morrison defends handling of aged care
Scott Morrison has defended his government’s handling of the pandemic, rejecting criticism of the commonwealth’s failure in aged care.
The Prime Minister denied the government had failed to act to prevent the 673 deaths in aged care during the coronavirus crisis.
“Eight per cent of Australia’s aged care facilities had COVID-19 cases, that compares to 56 per cent in the UK,” he told the 7.30 program on ABC on Wednesday night.
“We have acted. There have been half a dozen cases, where I would agree that the failings were acute, but they were not system-wide. In the vast majority of aged-care facilities, what we saw is the system actually deal with the pandemic and prevent that horrific result that we are seeing all around the rest of the world.”
The government continued to boost aged-care funding, he added.
“We’re committed to respond to that royal commission in the aged care inquiry as we said last night and we will do that properly when we get those recommendations. We have already responded to the recommendations that they have made,” Mr Morrison said.
“It is a difficult challenge and that is why we continue to spend more on it and continue to learn more about how we can improve in this area.
However, he rejected the suggestion in the interim report from the royal commission into aged care that the government had failed to inform the sector of the lessons learned from the Newmarch house disaster in NSW.
READ MORE: Sweden isolates cases without a lockdown
Paige Taylor 8.30pm: We’re ready to let the money flow: McGowan
Mark McGowan has promised the biggest infrastructure spend in state history in his gov¬ernment’s fourth budget on Thursday.
Soaring iron ore prices have helped to make it possible for West Australian Labor to offer household bill relief and create thousands of construction jobs.
The Premier said the budget would pour money into economic stimulus by building trains and roads, and rebuilding hospitals, police stations, water infrastructure and ports.
WA is widely expected to be the only state to forecast a surplus in 2020-21. Less than five months from the state election, Mr McGowan on Wednesday defended his government’s decision not to plunge the state deep into deficit in the pursuit of economic recovery.
“We have been the government with the best financial management in Australia now for the past three years and you will see that continue,” he said.
“Debt will increase because revenue has gone down but the state government, like all gov-ernments, needs to have the ¬capacity to respond if a second wave of corona¬virus comes along or if there is a further economic problem. The idea that somehow bankrupting the state is a good thing is wrong. You have to actually have capacity to deal with problems as they arise.”
James Kirby 8pm: Transparency clause in super reforms is a game changer
The government’s move to reform big super funds will be done with a big stick: super funds are going to have to front up to members once a year and detail all remuneration, political donations, sponsorships and, crucially, “trade associations”.
With leading industry funds constantly under fire for trade union links and a lack of transparency across investing activities, the new requirement — coupled with a changed definition that funds must act in the “best financial interests” of members rather than the former “best interests” — will be a game changer.
The finer details of how the Morrison government is going to run super reforms are contained in a supplementary Treasury document not included in the formal Budget Measures paper.
Domanii Cameron 7.30pm: LNP to slash electricity bills for manufacturers
Queensland manufacturing businesses will have their electricity bills slashed by about 20 per cent over four years under an LNP government.
Visiting Watkins Steel in the safe Labor seat of Nudgee on Wednesday, Opposition Leader Deb Frecklington, deputy Tim Mander and local candidate Ryan Shaw announced the $493m election commitment would help 16,000 businesses.
Leanne Linard holds the seat in Brisbane’s north by a margin of 14.32 per cent ahead of hte October 31 state election.
Under the proposal, a $493m Community Service Obligation would be provided to government-owned corporation Energy Queensland, with Ms Frecklington assuring those 7300 associated public servants that their jobs were secure.
Bojan Pancevski 7pm: Sweden tries to isolate cases without a lockdown
Sweden, almost alone in Europe in rejecting a broad lockdown this northern spring, has introduced new guidelines to curb asurge in coronavirus infections but is sticking to its largely voluntary approach.
The Nordic country, which only had minor restrictions throughout its epidemic, had until recently been spared by the secondwave of COVID-19 cases currently sweeping Europe. Authorities’ hopes that this was the result of collective immunity builtas the disease spread rapidly through communities earlier in the year were dashed in recent days when a surge in new casesput Stockholm on track to reach last northern spring’s infection record.
The new measures, in force for less than a week, recommend that all members of a household should isolate for a week if oneof them becomes infected. Those unable to work from home will be eligible for sick pay.
In addition, anyone experiencing cold-like symptoms such as a sore throat is encouraged to stay at home and get tested forCOVID-19. So far, testing was only recommended for those experiencing clear symptoms of the disease, such as loss of smellor high fever.
Sarah Elks 6.25pm: Palaszczuk focuses on crucial Townsville seats
Queensland Premier Annastacia Palaszczuk this afternoon landed in Townsville, the north Queensland city that will prove critical to the October 31 state election result.
Labor holds all three of Townsville’s marginal electorates — all on slim margins less than 4.5 per cent — and could lose its entire two-seat majority here.
Townsville (Labor 0.38 per cent), Mundingburra (1.13 per cent) and Thuringowa (4.15 per cent) are all considered must-win seats for Ms Palaszczuk’s Labor to hold government.
Heidi Han 5.36pm: ‘No rush to open international borders’: PM
Scott Morrison emphasised the importance of English in his budget briefing to multicultural communities as he indicated “no rush” to open international borders for the foreseeable future.
Expansions of the Adult Migrant English program, as well as introducing an English language requirement for partner visas and their permanent resident sponsors in the budget paper, highlight the government’s focus on English proficiency among existing and prospective migrants.
“I am very aware that the lack of English language skills, particularly amongst partners, has put many of those partners at risk in Australia, at risk of domestic violence, at risk of being abused in the workplace and having their rights overtaken, ”said the Prime Minister at a virtual multicultural press conference this morning.
“English language is absolutely critical to help people when they come to Australia to take the greatest opportunity of what life in Australia can mean,” said Mr Morrison.
It came as the budget revealed that the majority of visas within the family stream will go to partners, with 72,300 places allocated, an increase from 37,118 last year, as the government said it is expected that 75 per cent of partner visas will go to those already in Australia.
The government will also give priority to Employer-Sponsored, Global Talent, Business Innovation and Investment Program visas within the Skilled Stream, which in general applicants have a higher level of English proficiency.
While remaining cautious about any opening of international borders, Mr Morrison revealed that he had discussion with Prime Ministers of Korea and Japan on the possibility to move forward together with other countries.
“But I won’t say we’ll be rushing here, we’ll be proceeding carefully,” he said. The Prime Minister also said that it requires “effective border management and quarantine management to make that a reality”.
READ MORE: NSW’s impressive COVID-19 streak broken
Rosie Lewis 4.17pm: Frydenberg defends young wage subsidy
Josh Frydenberg has been forced to defend his $4bn wage subsidy scheme for young Australians against claims it will be used to replace older workers, insisting a “double-barrel” eligibility test will ensure new jobs are created.
It is highly likely Labor will support the JobMaker hiring credit policy, meaning the bill will be passed by the Senate, but opposition treasury spokesman Jim Chalmers said the party was concerned nearly one million unemployed Australians would not qualify for the subsidy.
Under the government’s plan, which would run for 12 months, an eligible employer would receive $200 per week for hiring a person aged 16 to 29 years old or $100 per week for someone aged 30 to 35, with a maximum benefit of $10,400 per new position created. The new employees must work at least 20 hours per week.
In order to receive the subsidy, an employer must show the hiring of that person has increased their business’s headcount and wages bill compared to September 30.
“There’s a double-barrel test for the eligibility for a business to receive that JobMaker hiring credit,” Mr Frydenberg told the National Press Club in Canberra.
“The integrity test … is designed to support additional people coming on to that business and that will ensure that those 450,000 people that we’re supporting will get the benefit of those businesses taking those incentives to hire and to grow.
“We have seen with previous recessions and we have seen in this recession that they (young Australians) have been particularly hit hard and they don’t necessarily have the same experience or the skillsets that some of the senior workers have and so, therefore, giving them this helping hand now is very important.”
Mr Chalmers said Labor was “prepared to be responsible” in considering the wage subsidy legislation, noting 160,000 Australians were expected to lose their job between now and the end of the year and that the unemployment rate remained higher than before COVID-19 over the next four years.
“The issue that has been raised with us, and the issue that we have raised, is that there are 928,000 Australians on unemployment benefits who are not eligible for the government’s hiring subsidy,” he said.
“It beggars belief … when you’ve got a trillion dollars in debt, you’ve got all of this money being sprayed around, that not just older workers, but workers in their 30s, workers with young families, are being left out and left behind and left in the lurch.”
Greens leader Adam Bandt said the “dodgy” JobMaker policy would fuel insecure, low-paid work by throwing money at big corporations to hire part-time workers on the minimum wage.
While not confirming how the party would vote, Greens sources said a McDonald’s franchise had less of an incentive to employ a 32-year-old working 40 hours per week under the plan than two 17-year-olds each working 20 hours per week.
“McDonalds will be rubbing their hands at this great big pot of cash. JobMaker will deliver for big corporations but not for young workers,” Mr Bandt said.
Independent South Australian senator Rex Patrick said he wanted to know what safeguards were in place to make sure the program was not abused, as JobKeeper has been in some cases, while One Nation leader Pauline Hanson also cautioned it would “only lead to more rorting by those who wish to game the system”.
“Instead of discriminating against all Australians wanting to enter the workforce, penalise those on welfare who don’t accept a job when it is offered to them,” Senator Hanson said.
Centre Alliance senator Stirling Griff said he would support the measure though acknowledged the wage subsidy alone was unlikely to be enough for an employer to take on new, permanent workers.
“In reality I would think it will be picked up by smaller businesses who currently or intend to employ a casual workforce. This may well be the intended design of this package?” Senator Griff said.
READ MORE: New COVID rules to save cruise industry
David Ross 3.46pm: Health alert for venues after three positive Sydney cases
A public health alert has been issued for several venues in around Sydney after three new cases of COVID-19 were confirmed in the area.
People who attended the Fitness First Carlingford Pilates Class on Saturday 3 October from 8.15am to 9.15am are considered close contacts and must immediately get tested and isolate for 14 days since they were there, and stay isolated for the entire period, even if a negative test result is received.
NSW Health is directly contacting those who attended the Fitness First class.
A potential exposure warning has been issued to people who attended several other venues, with anyone who attended during these times considered a casual contact who should self isolate and get tested if they develop any symptoms of COVID-19.
Friday 2 October: Kmart, Narellan Town Centre, Narellan – 6pm to 7pm
Saturday 3 October: Fitness First, Carlingford (all attendees other than those in the pilates class notified above): 8 to 9:15am
Sunday 4 October: Penrith Homemaker Centre, Penrith – 11am to 1pm
Sunday 4 October: Guzman y Gomez, Penrith – 1.30pm to 2pm
Sunday 4 October: Home Co, Penrith – 2pm to 2.30pm
Monday 5 October: Westfield Parramatta – 9.30am to 11am
Monday 5 October: Castle Towers Shopping Centre, Castle Hill – 12pm to 1pm
NSW Health is calling for more people, particularly those in West and South West Sydney to come forward for testing.
READ MORE: NSW Covid streak broken
Amos Aikman 3.09pm: Back budget, NT leader urges Labor colleagues
Northern Territory Chief Minister leader Michael Gunner will be urging his federal Labor colleagues to back the Morrison government’s budget, saying it’s good for Territorians.
“I find it difficult to complain about this budget, and I don’t really want to. I don’t want to be a whinger; I want to be a doer,” Mr Gunner told reporters in Darwin.
“You can be that kid at Christmas who always says, ‘I want one more present’. I don’t want to be that kid. I think there’s a lot in here for the Territory, a lot in here for Territory business and Territory jobs. I think Northern Territorians are winners out of this budget. I just want to get on with the job and deliver as much as I can for Territorians.”
Asked if he would urge the federal Labor opposition to back in Treasurer Josh Frydenberg’s measures, Mr Gunner replied: “In my opinion, these are good measures that the Territory needs.”
Darwin-based federal Labor MP Luke Gosling, who represents the swing seat of Solomon, did not immediately appear convinced.
“The budget will rack up a trillion dollars of debt but the NT is still copping a $100 million cut to our GST payments which will make our recovery even more difficult,” Mr Gosling said in written remarks issued late on Tuesday.
“The budget doesn’t do enough to create jobs and support Territorians hit hard by the COVID-19 pandemic.”
Mr Gunner said he had been urging Canberra to support Territory jobs and had asked for and received an extension of JobKeeper, a new wage subsidy for workers, more support for small business and support for apprenticeships.
“The Territory wanted jobs, and the Territory got jobs,” he said.
He also praised additional funding for roads and an extension to the Northern Australia Infrastructure Facility scheme.
“I am encouraged by last night’s budget because it shows that the Prime Minister and I are on the same page,” Mr Gunner said.
“We both understand that to repair our budgets over time, we have to grow the economy, and our economic recovery must be jobs led.”
Mr Gunner will deliver his own budget next month.
READ MORE: Durie — Budget a test for corporate Australia
Richard Ferguson 2.33pm: Budget is for women who ‘work, pay tax, want jobs’
Scott Morrison says his pandemic budget is geared towards women who pay tax, run businesses and want jobs as he faces attacks from Labor in question time.
Anthony Albanese said in question time that the budget did not do enough to help women, who have been hit hardest in the COVID-19 unemployment crisis.
“I refer to the fact that the burden of the Morrison recession has disproportionately fallen on women. Why is the government racking up $1 trillion of Liberal debt without a plan to support the participation of women in the workforce?” he said.
“Why has the Prime Minister left women behind in this budget?”
The Prime Minister said his Women’s Economic Security Statement was a key part of his post-pandemic plan and the entire budget’s focus on tax cuts and boosting employment would ultimately help all Australian women.
“Women pay tax. Women hire other Australians in their businesses. Mr Speaker, women want to drive on safe roads,” he said.
“Women want to go to university, and they want to study science and technology and engineering and maths ... They want to get apprenticeships, Mr Speaker. They want to get traineeships. They want to get jobs.”
READ MORE: Funding to open doors for female workers
Remy Varga 2.28pm: Andrews forced to drop police bill detainment provision
The Victorian government has dropped a controversial provision in its Omnibus bill that empowered police to detain people for public health reasons.
Attorney-General Jill Hennessy said the changes to the proposed legislation were made following concerns raised in consultation over the scope of the powers.
“We have always said we would negotiate in good faith,” she said.
“These changes address concerns raised throughout those negotiations while continuing to deliver the temporary, necessary changes we need to respond to the challenges the pandemic presents.”
The state government will also clarify the proposed powers that will be used to appoint Victoria Police officers and WorkSafe inspectors as authorised officers when the omnibus bill comes before the Victorian parliament next week.
New authorised officers will only be given powers relevant to their role and only if they have the required training.
READ MORE: Emergency tzar’s about face on hotel scheme
Greg Brown 1.59pm: Albanese flags $500m for social housing package
An Albanese government would commit $500 million on a social housing package, with the funds being used to repair up to 100,000 homes.
Anthony Albanese said there should be an immediate $500m contribution to the sector from the commonwealth, in a partnership with the states which would also commit $500m.
“As someone who grew up in public housing, I know the difference it can make when you’ve got a roof over your head and a comfortable home,” Mr Albanese said.
“This plan would provide work for tradies right across the country, from the city and suburbs to our rural and regional communities.”
Opposition housing spokesman Jason Clare said one of the fastest way to get money into the economy was to get “tradies back on the tools” through social housing investment.
“With housing construction demand about to fall off a cliff, this is a no-brainer. It means jobs for Australian workers and homes for those who need them most,” Mr Clare said.
READ MORE: Parental path not so inviting as baby drought bites
GEOFF CHAMBERS 1.54pm: Morrison backs coal-fired power station upgrade
EXCLUSIVE: A major upgrade of the Vales Point coal-fired power station has been backed by the Morrison government in a bid to fast-track an additional 30MW into the electricity market and reduce emissions by more than 1 million tonnes.
Energy Minister Angus Taylor has allocated $8.7m in support of Delta Electricity’s upgrade of its 1320MW Lake Macquarie coal plant, which currently provides 13 per cent of NSW’s generation capacity.
The power station upgrade, one of 12 projects short-listed under the Morrison government’s Underwriting New Generation Investments program, will not extend the coal plant’s life beyond its planned closure in 2029.
Under an ad hoc grant process, Delta Electricity will need to submit a grant application to the Department of Energy to support its plant upgrade and “reduce emissions, improve efficiency and improve reliability”.
Mr Taylor said the additional electricity output from the NSW Hunter Region power station would contribute to the government’s 1000MW target.
“The Vales Point power station is a major supplier of electricity in NSW. This grant will make Vales Point more reliable, more efficient and deliver much needed dispatchable power in NSW,” Mr Taylor said.
READ the full story here
Richard Ferguson 1.28pm: Tax cuts ‘won’t arrive until end of year’
Josh Frydenberg says Australians will get their backdated tax cuts at the end of the financial year, despite suggestions that money could go into people’s pockets now.
More than 11 million Australians will pay thousands of dollars less in tax this financial year after the Morrison government brought forward the second stage of its tax cuts by two years to July 2020, in a move Josh Frydenberg said would boost the economy by $12.5bn and create an additional 50,000 jobs.
The Treasurer told the National Press Club on Wednesday that the government has been advised while tax cuts will be felt from December, the backdated amount is not available till the end of the year.
“People’s salaries may have been — or the income they were receiving in those earlier six months — be different to what they are receiving as of November and December because obviously the circumstances have changed across the economy,” he said in Canberra.
“You also get the lower and middle income tax-off set. You know once you put in your return for the year that comes in.
“So you will get benefit as of the end of the year or before as soon as the PAYG withholding schedules are updated by the treasury.
“But the advice to us ... is that they will amend those schedules for going forward and then people receive the money at the end of the year.”
Australians earning $40,000 will pay more than a fifth less tax this year than they would have in 2017-18 before the first round of the legislated income tax plan. Those on $80,000 will pay about 11 per cent less tax.
The second of the three-step legislated personal income tax plan increases the top threshold of the 19 per cent income tax bracket from $37,000 to $45,000, while the 32.5 per cent tax rate will kick in at $120,000, instead of $90,000.
READ MORE: Kirby — ‘Crisis’ tax cuts take spotlight
David Rogers 1.29pm: Stocks surge on ‘go Australia’ budget
Australian shares are surging after a “go Australia” budget, according to AMP Capital Portfolio Manager Dermot Ryan.
“This year’s federal budget is a go Australia moment like no other and business is leading the charge,” he says
“Business spending stocks – like auto and equipment exposed sectors – are all up strongly.
He notes that business and middle-income support packages accounted for half the $100bn spending in the Morrison government’s recovery budget.
“This is a big win for real businesses with a domestic focus,” Mr Ryan says.
“Business is getting fired up across all sectors with spending, tax and hiring incentives, which will help those who can to grow and prosper again.”
He also notes that the retail, property, healthcare, agriculture and construction will be able to access the JobMaker program and boost youth employment.
And he sees room for stimulus measures to support tourism, migration and mobility, once the path is clearer on a vaccine/containment strategy.
“The budget measures are set to fire up demand and should get the country up and running and on the road to recovery.”
The S&P/ASX 200 was last up 0.9pc at 6013.2 after hitting a 4-week high of 6020.
READ more live ASX coverage at Trading Day
Richard Ferguson 1.16pm: ‘We take virus seriously’: Frydenberg
Josh Frydenberg says he and Scott Morrison would not put out the same messages on COVID-19 as Donald Trump, as the coronavirus-positive US President says it is the same as the flu.
The Treasurer told the National Press Club that he would not comment directly on Mr Trump’s recent social media posts comparing COVID and the flu, which have been censored by Twitter and Facebook.
But Mr Frydenberg did say the Prime Minister would not make similar comparisons.
“We take COVID-19 very seriously. It’s a deadly virus. And it’s taken lives and it doesn’t discriminate,” he said in Canberra.
“You won’t see Scott Morrison putting out those sort of messages. What Scott Morrison, what Greg Hunt, what myself and others have always said is that this virus is deadly and it’s is creating a massive health and economic challenge for us and we put the health of all Australians first.”
READ MORE: Overington — Secret Service trained to take a bullet for president
Staff writers 1.02pm: Tax cuts on top of everyone’s minds
Tax cuts have been comfortably the most mentioned element of the budget in all media types, and across metropolitan and regional media, to 9am today.
“It was a high-spending budget full of new initiatives but the biggest immediate talking point was the bringing forward of previously announced personal income tax cuts,’’ Stream media analyst Conal Hanna said.
“The tax cuts were comfortably the most mentioned element of the budget in all media types, and across metropolitan and regional media, to 9am on Wednesday.
“The record deficit has also been very prominent, while infrastructure spending and the new JobMaker program were the other elements to generate most interest.”
READ MORE: ABC set for years of decreased funding
Varga, Remy 12.45pm: Andrews says ‘well done’ on budget
Daniel Andrews says he’s not interested in having debates with the commonwealth over federal budget that was unveiled last night.
He told reporters on Wednesday that now was the time for governments to borrow to rebuild a Covid-devastated economy.
“This is not the time for surpluses and it’s not the time to ignore the fact that if you don’t borrow at historically low carrying costs then you’ll make a bad situation worse,” he said.
“To that extent I say well done to the commonwealth, there are always things we could go back and forth on … [but] I’m not interested in having those debates at the moment, we’re working side-by-side with the commonwealth government.”
Mr Andrews said Victoria’s budget would be historic, promising reforms to repair the state’s dire economic outlook following months of successive lockdowns.
“I can assure every single Victorian that it will be the most significant state budget that’s ever been delivered in the history of this state,” he said.
“In terms of large projects and small, opportunities for reform and change and real leadership in a number of important areas that will all be about skills, jobs, confidence, investment … making sure there’s a real spark in the Victorian economy and we’ve got that momentum to take us through 2021.”
READ MORE: For transport, all roads lead to jobs
Mackenzie Scott 12.12pm: Housing demand spikes in Victoria.
Housing demand rose in Victoria last week in response to the easing of restrictions on Melbourne’s real estate industry, according to Realeatate.com.au.
The site’s Weekly Demand Index, which measures high-intent buyer activity, showed demand rose 24.5 per cent last week in Victoria to become the largest increase in the state since the first week of January in 2019.
Activity had already begun to increase (up 6.8 per cent) in the week leading up to the August 2 easing of restrictions, which allowed real estate agents the opportunity to show people through properties one-on-one for the first time in eight weeks.
REA Group’s director of economic research Cameron Kusher expects the trend to continue.
“Over the coming weeks I expect further increases in demand in Victoria and stronger overall demand in other states with no upcoming long weekends,” he said.
The national index recorded its strongest rise in 16 weeks as a result of the burst in Victorian activity, up 4.4 per cent last week.
Western Australia also recorded a rise in demand of 1.1 per cent, while the ACT (down 8.4 per cent) and South Australia (down 4.7 per cent) recorded the largest falls.
READ MORE: More properties sold at a loss
Remy Varga 12.05pm: Andrews can’t guarantee restrictions will ease on October 19
Victorian Premier Daniel Andrews says he can’t guarantee restrictions will ease on October 19, the date set in the state’s original road map out of lockdown.
Mr Andrews said that the state was “in an infinitely better position” than it had been in months, but stressed any decision on lifting restrictions would hinge on lower case numbers.
“I get it, everyone’s on a countdown, everyone’s looking at all sorts of numbers,” he said.
“We are too and when it’s safe to take a step we will [but] we can’t predict what tomorrow’s numbers will look like, let alone another 12, 14 days on.
“We just have to do this one day at a time, one case at a time, one decision at a time.”
Mr Andrews said pinning Victoria’s reopening to low case numbers meant the state would be able to reopen meaningfully when the appropriate time came.
Under the road map, Victoria needs to record a rolling daily average of no more than five cases over a period of 14-days to transition to step three.
On Wednesday, metropolitan Melbourne’s 14-day rolling average was 9.9.
READ MORE: Virus’ $589bn lingering pain
Sarah Elks 11.56am: Mine support ‘not to butter up Katter’
Queensland Premier Annastacia Palaszczuk has denied her backing of the Copperstring project is a way of “buttering up” crucial crossbencher Robbie Katter in the event of a hung parliament.
Ms Palaszczuk and Treasurer Cameron Dick are in Mount Isa at the Glencore copper smelter on day two of the Queensland election campaign to announce an agreement with the $1.8bn Copperstring project, which aims to eventually deliver cheaper power for new mines in the state’s northwest minerals province.
The project has long been advocated for by local member for Traeger Robbie Katter (who holds the seat on a massive margin of 28.49 per cent), leader of the Katter’s Australian Party, who commands three of the seven votes on the current crossbench.
READ the full story here
John Lethlean 11.39am: Budget a ‘recipe for recovery’ for restaurants, cafes
Australia’s peak restaurant industry body, Restaurant & Catering Australia, welcomed the 2020-21 budget as one that was “a recipe for recovery for more than 43,0000 restaurants, cafes and caterers across the country.
R&CA CEO Wes Lambert said that initiatives announced today will save thousands of businesses from closure by stimulating demand through personal tax cuts and giving businesses the right conditions to hire more workers and reduce losses borne as a result of COVID restrictions.
“We know that demand to eat out is still high, so by putting $12.5 billion dollars back into the pockets of 11 million Australian taxpayers over the next 12 months, the government is doing its bit to stimulate demand across the Accommodation and Food Services Sector,” Lambert said.
“Combine that with $1.2 billion committed for a 50 per cent wage subsidy for new apprentices and trainees under the Boosting Apprenticeship Commencements program and the newly announced JobMaker Hiring Credit which will help thousands of hospitality business bring back the young employees that were lost due to the pandemic and there is a real recipe for recovery.”
“As one of the single largest employers of young people the newly announced JobMaker Hiring Credit, which provides employers $200 per week for new employees aged between 16-29, and $100 per week for those aged between 30, will reduce the costs of hiring new workers and will help businesses create more jobs,” Lambert said.
READ MORE: Subsidy to hire young jobless
Ben Packham 11.35am: Australia joins condemnation of China’s Uighur camps
Australia has joined with 38 other countries at the United Nations Human Rights Council to condemn “gross human rights violations” by China in Xinjiang, where more than a million Uighurs are believed to be detained in “re-education” camps.
In a statement delivered by Germany, the predominantly European group of nations expressed “grave concerns” over China’s treatment of ethnic minorities in Xinjiang and Tibet, and its security crackdown in Hong Kong.
The countries called out China’s targeting of Uighurs in Xinjiang through widespread surveillance and curbs on freedom of religion, and noted increasing reports of forced labour and forced sterilisation.
READ the full story here
Hannah Moore 11.05am: Community transmission streak broken in NSW
New South Wales’ impressive streak of no locally acquired cases of coronavirus has been broken.
Up to 8pm on Tuesday, the state recorded three new cases, all from returned travellers in hotel quarantine – but after that recording period three additional, locally acquired cases were uncovered.
The new locally acquired cases are not believed to be linked to each other, and are spread across the Parramatta, Camden and Wollondilly – two women and a man, all aged in their 50s.
Contact tracers are racing to identify close contacts of the new cases.
Premier Gladys Berejiklian said testing numbers across the state were too low, especially considering the new cases.
“Our suspicions the virus is always lurking in the community are founded – and we wouldn’t have said it if we didn’t mean it,” she said.
The news comes as NSW Health issues an urgent warning to nearly half a million residents living in south western Sydney and the Hawkesbury areas to come forward for testing.
Recent samples of sewage in the areas uncovered traces of the virus, despite no recent cases in the area.
This break in the state’s 12-day streak with no community transmission resets the clock for the border between NSW and Queensland to open, which QLD Premier Annastacia Palaszczuk said would take 28 days of no locally acquired cases.
Three cases in overseas travellers in hotel quarantine were diagnosed in the 24 hours to 8pm last night, bringing the total number of cases in NSW to 4,060.
— NSW Health (@NSWHealth) October 7, 2020
Ms Berejiklian delivered a stinging barb to her northern counterpart, suggesting there is no way the state would ever be able to go four weeks with no local cases.
“We have to assume during the course of the pandemic that from time to time, we’re always going to have this,” she said.
“We’re always going to have cases pop up because we’re in a pandemic, but also in an economy that is open … where we don’t have borders but for Victoria.
“So I say to the Queensland government, I appreciate you’ll probably come out today and say the 28 days is ticking again from the start, but I will put to you – until the end of the pandemic, it’s highly unlikely, highly improbable that NSW will ever get to 28 days of no community transmission, because that is not how a pandemic works.
“Queensland and WA have the luxury of closing their borders, so they have a higher chance of having zero community transmitted cases.”
Queensland Premier Annastacia Palaszczuk says health authorities would watch NSW “very carefully” over the next fortnight as the state moves into school holidays and the chance of community transmission increases.
“In relation to community transmission, we’ve always said we want to watch very carefully what happens to NSW over the next fortnight as they go into the school holidays. That’s when people are moving around, as well, and they’re not just staying around their homes and their neighbourhoods.
“We’ll be watching that very, very carefully.”
— NCA NewsWire
Remy Varga 10.55am: Chadstone butcher’s cluster increases with new cases
Premier Daniel Andrews said there were 206 active cases in the state, with the state’s death toll rising to 809.
He said the latest victims included a woman in her 80s and a man in his 90s.
Mr Andrews said there were 16 Victorians being treated for the disease in hospital, with none requiring a ventilator.
Today's #mysterycases update. Will make this routine @VicGovDHHS reporting shortly. pic.twitter.com/zqms4qpzHX
— Chief Health Officer, Victoria (@VictorianCHO) October 6, 2020
The Chadstone butcher’s cluster has increased by three cases, bringing the total to 31 on Wednesday.
Jeroen Weimar, the head of Victoria’s state’s coronavirus transport strategy, said the cluster linked to the Oddfellows cafe in the town of Kilmore north of Melbourne remained at two.
READ MORE: Lockdown continues – ‘by no means is it over’
Ben Wilmot 10.35am: Budget boost for retail landlords
Beaten down retail landlords could be winners from the federal budget’s stimulatory settings as income tax cuts and support payments to pensioners hit the tills.
Further benefits from temporary tax write-offs spread over three years for eligible capital assets acquired by businesses, should also boost retailers like JB Hi-Fi and Officeworks.
Macquarie Equities analysts Stuart McLean and Darren Leung said landlords like Aventus Group were likely key beneficiaries of these stimulus measures.
“We expect the dispersion in spend we are currently witnessing to continue (i.e. favouring consumer durables), with significant rent relief still required by traditional mall landlords given headwinds tenant categories such as services, cafes,” they said.
But the boost for the residential sector was dubbed “minor” as there was no change in the HomeBuilder package, even though the number of places in the First Home Loan Deposit Scheme increased by 10,000. The cap on purchase value also lifted although net overseas migration is still expected to shrink, hurting the sector.
“The extension of the FHLDS is a positive but is not enough to materially change our forecasts,” Macquarie said.
The broker said the $1.5bn provided to support the Australian manufacturing sector and $10bn of state infrastructure payments, as well as $4.5bn spending on the NBN, would spur demand for industrial assets. This would be positive for developments by Goodman, GPT, Stockland and Dexus.
READ MORE: Trading Day — Packer quizzed again, ASX dips at open
Richard Ferguson 10.19am: Spending on jobs will drive recovery: Frydenberg
Josh Frydenberg has defended the level of spending in the federal budget, telling 2GBs Ben Fordham it is crucial for economic recovery.
The Treasurer said reviving the economy relies on job creation that will stabilise Australia’s debt position, which is estimated to hit $1 trillion.
“We will have to climb that mountain again … it’s a function of the challenge that we are facing but we can do it and last night’s measures will help do that,” Mr Frydenberg said.
“The measures we announced last night will make for more profitable companies that will create more jobs. That’s our focus. To create more jobs and get the private sector driving our economic recovery.”
“Our message to Australians is that there is hope, there is cause for optimism, and that we will get through this once-in-a-century pandemic together.”
READ MORE: ‘How we’ll put a rocket under the recovery’
Remy Varga 9.39am: Emergency boss corrects himself on quarantine
Emergency Management Victoria Commissioner Andrew Crisp has corrected evidence he gave on hotel quarantine to a parliamentary inquiry.
The state’s top emergency official now says he did not regularly brief Emergency Services and Police Minister Lisa Neville on hotel quarantine when the program was being established on March 27 and 28.
“I wish to correct this in acknowledgment that I did not brief the Minister for Police and Emergency Services throughout the 27 and March 28 2020 with regard to what was being planned,” he said in the letter.
Ms Neville and Mr Crisp attended a meeting with then Chief Commissioner Graham Ashton on March 27 where hotel quarantine was discussed.
READ MORE: After Covid pain, hopes rest on bringing Victoria into line
Rebecca Ballhaus 9.36am: Trump plays down Covid, set for debate
President Trump plans to attend next week’s debate against Joe Biden in Miami, his campaign said Tuesday, a day after the president returned from three days of hospitalisation for COVID-19.
The debate is scheduled for October 15, which would be two weeks after the president first tested positive. People infected with COVID-19 can stop isolating after 10 days have passed since the onset of symptoms, as long as they haven’t had a fever in 24 hours and their other symptoms are improving, according to Centers for Disease Control and Prevention guidelines. The president’s doctor, Sean Conley, said Monday it was possible the president would no longer be contagious before the 10-day period ends.
The president reported no symptoms on Tuesday, Dr Conley said in a memo, adding that Mr Trump’s vital signs remain stable.
Mr Trump, who continues to be treated with a range of therapies typically used for severe cases of COVID-19, has played down the severity of the virus in recent days, even as his doctors said Monday that he wasn’t entirely in the clear and would need close monitoring.
Flu season is coming up! Many people every year, sometimes over 100,000, and despite the Vaccine, die from the Flu. Are we going to close down our Country? No, we have learned to live with it, just like we are learning to live with Covid, in most populations far less lethal!!!
— Donald J. Trump (@realDonaldTrump) October 6, 2020
In a tweet Tuesday morning, Mr Trump called COVID-19 “far less lethal” than the flu and said that, despite the death toll the flu brings, “we have learned to live with it, just like we are learning to live with Covid.” Late Monday, Mr Trump pointed to his own experience with the illness as he urged Americans not to fear COVID-19, in a video posted shortly after returning to the White House on Monday. — The Wall Street Journal
READ the full story here
Yoni Bashan 9.31am: Controversial land clearing measure approved
The Berejiklian government will grant landholders the right to clear native vegetation up to 25 metres from their home following a lengthy meeting of cabinet where the issue was discussed on Tuesday night.
The controversial measure was approved by consensus after ministers spent approximately 45 minutes debating the topic, one of several environmental issues that have divided the government on ideological lines.
READ the full story here
Remy Varga 9.10am: Victoria records six new cases, two deaths
Victoria has recorded six new cases of the coronavirus as well as two additional deaths.
Wednesday’s numbers bring metropolitan Melbourne’s rolling daily average to 9.9, with 12 cases with an unknown source.
Yesterday there were 6 new cases & the loss of 2 lives reported. Our thoughts are with all affected.
— VicGovDHHS (@VicGovDHHS) October 6, 2020
The 14 day rolling average & number of cases with unknown source are down from yesterday in Metro.
Info: https://t.co/eTputEZdhs #COVID19VicData pic.twitter.com/YiUQZCagjS
READ MORE: Entire nation left paying for quarantine debacle
Imogen Reid 8.45am: Palaszczuk: ‘Our road map on borders is black and white’
The Queensland Premier has been pressed on her decision to keep borders closed to NSW until November 1 — one day after the state election — despite the Treasurer appealing to state’s to stop “dragging their feet”.
Annastacia Palaszczuk was adamant she was not playing politics during the pandemic, instead arguing her government’s response had been consistent since the coronavirus crisis began.
“We have put in place the road map and everyone can see that now it is there, in black and white,” the Premier told Seven’s Sunrise.
“It has been hard on a lot of businesses, but because we have been able to keep the virus under control, it means we can open up the Queensland economy. The economy is functioning in Queensland.”
Host Sam Armytage then asked Ms Palaszczuk about unemployment levels in Queensland, which prompted the Premier to claim her state had “not had its fair share” of federal infrastructure funding to create jobs in comparison to Victoria and NSW.
“I just do not think we need to play those sort of games,” Ms Palaszczuk said.
“I think that is a little bit childish because we all work best when we work together. I have always said that.”
The Premier then assured Armytage she welcomed the budget’s infrastructure plan.
“We have projects happening across the length and breadth of Queensland. The Bruce Highway, upgrading Centenary Highway, we are working in partnership with the federal government on these projects,” she said.
“We are putting $900 million into these projects, matching the federal government.
“This is the fourth stimulus for roads packages my government has worked with the federal government on.
“They may say one thing, but behind closed doors, you will see they promised to work with my road’s minister to make sure we can kickstart those road projects.”
READ MORE: Rush on to mine regional votes
Richard Ferguson 8.17am: Labor backs income tax cuts, weighs business support
Labor will back the government’s tax cuts for middle income earners when they are tabled in parliament and inclined to support business tax breaks.
Anthony Albanese said while they would ultimately back the budget measures, he attacked the speed of the government’s push to pass the tax omnibus bill this week.
“We’ll support the tax cuts. We called for states for the tax cuts to be brought forward, but I got to say, this is a government that doesn’t like scrutiny,” he told Sky News.
“This is a government that doesn’t like accountability. There’s a reason why we have the budget on Tuesday night every year, we had the budget reply on the Thursday night which is the commencement of debate on budget measures.
“That’s what’s happened every year. That’s the way our Parliamentary democracy works
“We’re inclined, of course, to support business investment measures, but we will look at the detail.”
READ MORE: Hannan — Don’t bet your shirt on employment forecast
Richard Ferguson 8.00am: Albanese ‘doesn’t know what he’s talking about’
Scott Morrison has dismissed Anthony Albanese’s attacks on the budget, saying the Opposition Leader “doesn’t know what he’s talking about.”
Labor has taken aim at the budget’s focus on younger workers over older employees in its JobMaker hiring credit, and Mr Albanese says it has not done enough to help women.
The Prime Minister hit back at Mr Albanese on Wednesday over his attacks on the lack of structural reform.
“He just doesn’t know what he’s talking about,” he told Sky News.
Mr Morrison later attacked the Opposition for labelling the pandemic-induced economic downturn the “Morrison recession”.
“They embarrass themselves when they say that. The only person who doesn’t understand there has been a COVID-19 pandemic,” he later told the Nine Network.
“I think that shows they are fairly clueless about what is going on. The COVID- 19 has devastated lives and livelihoods right around the country.
“Frankly, that dismisses its impacts on ordinary Australians. I think it is disappointing. Frankly, it shows an embarrassing lack of understanding.”
READ MORE: Virus $589bn lingering pain
Richard Ferguson 7.50am: PM: ’More jobs whether you’re 55 or 25’
Scott Morrison says workers over the age of 35 will benefit from the government’s boost to post-pandemic training, as he faces Labor attacks over his JobMaker hiring credit.
The hiring credit scheme will offer employers $200-a-week to hire 18-28 year olds and $100 for 30-35 year olds, a move Anthony Albanese said leaves older people behind.
The Prime Minister on Wednesday said that JobMaker is focused on creating new workers, while JobTrainer will help workers transitioning between industries.
“It’s about new jobs, but one of the reasons the JobTrainer program, that’s $1bn together with the states, that’s 340,000 training places right now,” he told ABC News.
“That will often be used by those who are moving between careers and so it may be someone who’s working in the aviation sector or the hospitality sector or working in a travel agency or something of that nature and training to work in a different part of the economy which is growing.
“But if you don’t grow the economy, there won’t be these extra jobs and what we’re doing over particularly these next two years, which is where 90% of the spending is additionally in this budget, it’s been temporary and very targeted.
“That’s to ensure the economy can move forward. and there’ll be more jobs in the economy whether you’re 55 or whether you’re 25, or even 65.”
READ MORE: Funding flows for learning to work
Richard Ferguson 7.40am: PM: Spending plans ‘not dependent on vaccine’
Scott Morrison says the budget’s assumptions of the rollout of a coronavirus vaccine will not affect any of its big spending plans on tax cuts and wage subsidies.
The early release of a viable COVID-19 vaccine next year and the relaxation of Australia’s domestic and international borders could give the economy a $34bn boost to June 2022 and push GDP 1.5 percentage points above the budget forecast of 4.25 per cent.
But the absence of a vaccine, continued coronavirus outbreaks in Australian states and globally, and lockdown restrictions would cut $55bn from the economy and reduce growth in both 2020-21 and 2021-22 by a full percentage point.
The Prime Minister on Wednesday said that the budget had to present wider economic forecasts, and it did not affect its key policies.
“The bringing forward of tax cuts and the tax cuts that are in this budget, the support for hiring new employees with their JobMaker hiring credit, the instant asset write-off taken to ferric levels to ensure businesses can write off everything to create jobs, none of this is dependent on a vaccine or not,” he told ABC News.
“There’s always assumptions in the budget, there’s assumptions about many things but this budget is a plan and that plan is not on those assumptions.
“This plan is dependent on doing things to do to get the economy moving, to get people back into jobs, to recover by bringing forward those hiring and investing decisions.”
READ MORE: Six reasons everything has changed
Imogen Reid 7.30am: Business: Budget ‘doing its job’ to fuel economy
The Business Council chief executive Jennifer Westacott has supported Josh Frydenberg’s new economic plan, saying the Budget “is doing its job,” to fuel Australia’s pandemic-struck economy.
“It is a crisis situation we’re in. We’ve got a million people who don’t have a job,” Ms Westacott said.
“So the Budget’s job tonight was to get those people back to work by driving business investment, by driving business activity, by encouraging people to hire people, by retraining and re-skilling people. The Budget does that.”
Meanwhile, Deloitte Access Economics partner Chris Richardson said Australians should not be concerned about the cost to their livelihoods.
“The interest payments that we are making are no higher across the entire four years the Government has forecast, in fact they are lower than what they were in 2018-19,” he said.
“Lots of people are really scared about the size of the ongoing cost to our lives and livelihoods. It is less than what you think. We didn’t have a disastrous interest boom in 2018-19 and we don’t have one now. Debt is up, but interest rates are down spectacularly.”
Addressing the lack of incentives for workers over the age of 35 included in the Budget, the Business Council chief executive Jennifer Westacott said its measures needed to place a larger focus on young people in danger of not getting back to work.
“I think you’ve got to target those people who have been overwhelmingly affected by this pandemic and they have been young people in sectors like hospitality and tourism,” Ms Westacott told 2GB.
“The really important thing we need to do now is get businesses going again because they employ the bulk of Australians. We’ve also got to target those skills packages, particularly to people who are older, who’ve got less skills.
“So if you take the budget in its totality, I do think it has provided for those people but it has of course specially targeted those young people who are very vulnerable for not being able to get back into work.”
READ MORE: Providing right answer for current needs
Richard Ferguson 7.25am: PM rules out post-Covid free childcare
Scott Morrison has ruled out implementing post-coronavirus free childcare, saying it would only benefit parents on higher incomes.
Labor has attacked the Budget’s approach to getting women back into work and said free childcare should be considered.
The Prime Minister on Wednesday said he was focused on his Women’s Economic Security Statement – which focuses on boosting female entrepreneurs and training – over free childcare.
“$9 billion a year is what we spend on supporting childcare and those on supporting childcare and those on lower and middle incomes can get up to 85% of their childcare rebated,” he told Seven News.
“Free childcare is not something we are proposing, what that doesn’t basically give massive subsidies to those on much higher incomes.
“We have to continue to guarantee women’s economic security. There is $240 million focused on exactly that, entrepreneurship schools, training schools, particularly in the new technology areas.”
READ MORE: Needed reforms on hold
Richard Ferguson 7.20am: Albanese: Hiring credit leaves older workers behind
Anthony Albanese has hit out at Scott Morrison’s $4bn JobMaker hiring credit, saying the new wage subsidy for new workers will leave older people behind.
Employers who take on an unemployed young person will be eligible for a $200-a-week wage subsidy for the next 12 months under a $4bn scheme designed to create 450,000 jobs.
The Opposition Leader said on Wednesday that the policy would leave everyone over 35 in a worse-off position, because the subsidies cut off once the worker turns 35.
“If you are over the age of 35, you will lose your wage subsidy in March,” he told Seven News.
“If you go back to benefits, you are back to $40 a day ... and you’ll be competing for a job with someone under 35 who is being subsidised for work.
If you are over 35, you miss out on this budget.”
Imogen Reid 7.05am: Cormann ‘disappointed’ Albanese doesn’t support youth measures
Finance Minister Mathias Cormann said he was disappointed to hear Anthony Albanese was not supportive of the Budget measures targeted at young Australians to ensure they are not left behind.
“In previous economic downturns, one of the big features was that if young people lost touch with the labour market and stayed unemployed for too long a period, it became harder and harder to get them back into the economy,” Mr Cormann said.
“That is why there are specific measures targeting and providing support to young people.
“It is quite disappointing to hear that the Opposition Leader is not supportive of that particular and specific support for young Australians.”
Tuesday’s Budget promised a shorter road to economic recovery by unveiling stimulus plans, tax cuts and a $200-a-week wage subsidy for young workers aged 16 to 35. Mr Cormann said the data indicated that people in that age bracket were hit far more heavily by the economic impact from the pandemic compared to other Australians.
“That is why there is particular focus on providing support to them, and to businesses,” he said.
Mr Cormann assured said this focus on young people would not mean older Australians would miss out. He said the economy was already recovering and older Australians were already “quite a number of steps ahead.”
“There is lots of support in terms of reskilling and retraining opportunities for all Australians, irrespective of your age,” Mr Cormann said.
“So, that proposition that there is nothing in this for older Australians is disappointing politically for me.”
READ MORE: Subsidy in play to hire young jobless
Patrick Commins 5am: 11 million Australians benefit from tax cuts
More than 11 million Australians will pay thousands of dollars less in tax this financial year after the Morrison government brought forward the second stage of its tax cuts by two years to July 2020, in a move Josh Frydenberg said would boost the economy by $12.5bn and create an additional 50,000 jobs.
“Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and creating 50,000 new jobs,” the Treasurer said. “As they spend their tax cuts, this will also help local businesses to keep their doors open and hire more staff.”
Framing the tax cuts as a stimulatory measure that will help the economy recover from the COVID-19 crisis, Mr Frydenberg said “the greatest benefits will flow to those on lower incomes”.
Read the full story here.
Simon Benson 4.45am: Budget promises shorter road to economic recovery
Josh Frydenberg has thrown a staggering $507bn in tax cuts, cash payments and wage subsidies to drive business investment and protect the health of Australians in a bid to restore the economy to pre-COVID growth levels by the end of next year and create almost a million jobs by 2024.
Delivering a budget promising a shorter road to economic recovery, the Treasurer unveiled a $74bn jobs and tax stimulus plan, including tax cuts of up to $2745 for 11 million Australians, $200-a-week wage subsidies for young workers and almost $35bn in business tax breaks.
Mr Frydenberg said the government’s “economic recovery plan” would “rebuild the Australian economy and secure Australia’s future”.
Read the full story, by Simon Benson and Geoff Chambers, here.
Greg Brown 4.30am: ‘Millions left behind’ by federal budget, Labor says
Labor says the budget “leaves too many Australians behind” and does not do enough to create jobs and build for the future.
Opposition Treasury spokesman Jim Chalmers said the “trillion dollars of debt” is not being used to lower unemployment, with another 160,000 more Australians to be unemployed by Christmas.
“Scott Morrison is leaving Australia with $1 trillion of debt but unemployment is too high for too long, with the jobless rate not expected to get back to pre-crisis levels even after four years,” Mr Chalmers said in a statement made with opposition finance spokeswoman Katy Gallagher.
Read the full story here.
Joe Kelly 4.15am: Who are the budget's winners and losers?
Josh Frydenberg’s COVID-19 budget does its best to turn everyone into “winners” amid the most severe economic crisis since the Great Depression.
The Treasurer’s key priority is driving jobs and economic activity across the economy to cushion the blow from the most devastating health crisis in a century.
READ MORE: Dennis Shanahan — A lot must go right, we assume
Staff writers 4am: Money Cafe: decade of deficits, blizzard of measures
Alan Kohler and James Kirby discuss the 2020 budget from inside the lockup: the debt scenario facing the nation after COVID, surprises, super reforms and their verdict. Listen below, or in the podcast app of your choice.
David Ross 3.30am: ‘No other alternative’ but to splash cash
Josh Frydenberg has locked in behind his budget, saying the government had “no other alternative” but to splash cash to support the economy.
“There is great uncertainty, unprecedented uncertainty in the economic environment not just here in Australia but globally right now,” Mr Frydenberg said, speaking with ABC journalist Leigh Sales.
The budget papers make several assumptions, notably including a border closure with West Australia well into 2021, pointing to an April end to restrictions.
“The treasury papers outline a couple of other scenarios that may be better cases. So we could get access to the vaccine earlier than is laid out in the budget papers, and will lead to a $34 billion boost to the economy,” he said,
“These are projections. These are forecasts, these are made during a once in a century global pandemic. But there is a clear path back to jobs and employment for hundreds of thousands of Australians.”
The Treasurer defended the hard end to the JobKeeper and JobSeeker schemes, saying they would be supplemented by a cash flow boost that would support small businesses in addition to other incentives.
READ MORE: Paul Kelly — ‘This is the time to go Keynesian on steroids’
Rachel Baxendale 3.15am: ABC set for years of decreased funding
The ABC is set to face ongoing cuts to its budget in real terms, with funding for broadcasting — which covers the national broadcaster and SBS — subject to a 0.7 per cent decrease in real terms from 2019-20 to 2020-21, and a 3.7 per cent decrease in real terms from 2020-21 to 2023-24.
The decrease reflects the Morrison government’s decision in the 2018 budget to freeze ABC funding at 2018-19 levels until at least 2021-22, saving $84m. The broadcaster’s average staffing level fell from 4069 people in 2019-20 to 4030 in 2020-21, necessitating a recent round of redundancies.
The freeze has been partially offset by a $33m package for the screen sector and a $7.6m package over four years to assist SBS in providing enhanced language services, both of which were announced earlier this year, as well as the $44m “Guaranteeing Australia’s Public Broadcasters” package announced in last year’s budget, which runs for three years from 2019-20 and provides supplementary funding for the ABC and SBS.
Read the full story here.
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