A Starbucks worker packs up to close the store as Covid-19 lockdown is set to start in Melbourne on Aug 5.
Treasurer Josh Frydenberg on Tuesday announced A$17.8 billion in personal tax cuts and A$5.2 billion in new programmes to boost employment in a recovery plan aimed at creating one million new jobs over the next four years. Australia’s unemployment rate hit a 22-year high of 7.5% in July as businesses and borders closed due to strict lockdown measures to deal with the coronavirus.
In its new projections, the government expects unemployment to rise to 7.25% by the end of the current fiscal year and then fall to 6% by June 2023. Australia’s GDP is expected to shrink 1.5% for the current fiscal year before returning to growth of 4.75% in the next.Australia will spend A$4 billion over the next year to pay businesses that hire those under the age of 35 as it targets youth unemployment.
Both the fiscal and monetary support this year has helped restore consumption and business confidence and bring the unemployment rate down to 6.8%.
It'll shrink further..