A promising hope has been pointed out by Treasurer Josh Frydenberg as he said he feels very optimistic that the economy will be recovering from the ashes of the pandemic in 2021. However, he noted that Australia is “not out of the woods” just yet.
As per his statement with the media, Mr Frydenberg affirmed that the $7 billion in the Federal Government stage two tax cuts that were brought forward last October has aided greatly in boosting the economy.
“We’re seeing the benefits of that money rolling out into people’s pockets $7 billion that’s coming into people’s pockets in the last six months. Another $9 billion over coming months as well.” He said.
He also cited that there were notably good signs that the impacts of pandemic restrictions towards employment have been gradually mitigated.
According to him “Eighty-five per cent of the 1.3 million Australians who either lost their jobs or saw their working hours reduced to zero at the height of the pandemic are now back at work. So there are some positive and hopeful signs across the economy. But we’re not out of the woods just yet.”
All that being said the Treasure has ruled out as he brought forward the planned stage three tax cuts, and also extending the Jobkeeper wage subsidy.
On the other hand, Peter Strong, CEO of Small Business Council told media that the government should consider the extension of Jobkeeper, especially for the heavily impacted industries such as hospitality as it ends in March.
Yet, Mr Frydenberg said gaining control of the virus would best help the economy.
He said, “What will support hospitality beyond March is containing the virus on the health front. That is the best thing you can do for the economy is to get the virus.”
Adding to that, he also affirmed his expectation towards the Brisbane lockdown to be lifted today upon recording no new coronavirus cases for two successive days yesterday in the state.