An economic and fiscal update
On 23 July 2020, a ‘mini-Budget’ was delivered by Treasurer Josh Frydenberg—an economic and fiscal update, detailing the impact of the COVID-19 pandemic and the support provided to individuals, households and businesses.
Please note: Due to the COVID-19 pandemic, the 2020-21 Federal Budget will be delivered on 6 October 2020.
Below, we provide a summary of the update*, inclusive of the key announcements made in relation to the COVID-19 early release of super and more.
COVID-19 health data overview
COVID-19 confirmed cases, deaths and recoveries overview
As it stands, in terms of COVID-19^, globally, there are a reported 20,207,011 cases, 739,898 deaths, and 12,460,381 recoveries. And, nationally, there are a reported 22,127 cases, 352 deaths, and 12,393 recoveries.
Economic and fiscal outlook overview
Major economic parameters overview
| Australian Government, economic and fiscal update: Major economic parameters* | |||
| Outcome | Forecasts | ||
| 2018-19 | 2019-20 | 2020-21 | |
| Real GDP | 2.0% | -¼% | -2 ½% |
| Employment^ | 2.5% | -4.4% | 1% |
| Unemployment rate^ | 5.2% | 7.0% | 8 ¾% |
| Consumer price index | 1.6% | -¼% | 1 ¼% |
| Wage price index | 2.3% | 1 ¾% | 1 ¼% |
| Nominal GDP | 5.3% | 2% | -4 ¾% |
*Percentage change on preceding year unless otherwise stated. The consumer price index, employment, and the wage price index are through-the-year growth to the June quarter. The unemployment rate is the rate for the June quarter.
^2019-20 is an outcome.
Source: ABS cat. no. 5206.0, 6202.0, 6345.0, 6401.0 and Treasury.
Budget aggregates overview
| Australian Government, Economic and Fiscal Update: Budget aggregates | |||
| Actual | Estimates | ||
| 2018-19 | 2019-20 | 2020-21 | |
| Underlying cash balance* | -0.7 $b | -85.8 $b | -184.5 $b |
| Per cent of GDP | 0.0% | -4.3% | -9.7% |
| Gross debt^ | 542.0 $b | 684.3 $b | 851.9 $b |
| Per cent of GDP | 27.8% | 34.4% | 45.0% |
| Net debt# | 373.6 $b | 488.2 $b | 677.1 $b |
| Per cent of GDP | 19.3% | 24.6% | 35.7% |
*Excludes expected net Future Fund earnings before 2020-21.
^Gross debt measures the face value of Australian Government Securities (AGS) on issue. The 2019-20 number is the actual face value at 30 June 2020.
#Net debt equals the sum of interest-bearing liabilities (which includes AGS on issue measured at market value) minus the sum of cash and deposits, advances paid and investments, loans and placements.
Economic support overview and update
Total economic support in response to COVID-19 overview
| Australian Government, Economic and Fiscal Update: Total economic support in response to COVID-19 | |
| COVID-19 Response Package – economic measures* | 164.1 $b |
| Balance sheet support^ | 125.0 $b |
| Total | 289.1 $b |
*For example, JobKeeper Payment, boosting cash flow for employers, Coronavirus Supplement, payments to support households, supporting apprentices and trainees, temporary early access to superannuation, increasing and extending the instant asset write-off, HomeBuilder grant program and child care.
^For example, Government support for immediate cash flow needs of SMEs and Reserve Bank of Australia – Term Funding Facility.
COVID-19 early release of super update
The end date for the second tranche of the temporary condition of release, COVID-19 early release of super, will be extended to 31 December 2020 (previously 24 September 2020).
From 1 July 2020 (until 31 December 2020), eligible individuals will be able to apply to the ATO to access up to $10,000 of their super, tax-free. For more information on the COVID-19 early release of super, please contact the team at Carrick Aland in Dalby, Toowoomba or Chinchilla on 07 4669 9800.
The content does not take into account your personal objectives, financial situation or needs. You should consider taking advice tailored to your personal circumstances. Contact Carrick Aland or call 07 4669 9800 for more information on our available services. Please note all information is for Australian residents only.
