Frydenberg noted the economy was likely to grow 1.5 per cent in the September quarter. That recovery would be offset by the restrictions then in place across Victoria as well as âcontinued declines in business investment, residential construction and export volumes related to the international border restrictionsâ.
The border closure then, and in subsequent budget updates, was viewed through the prism of what was coming into Australia â not what the ban meant in terms of domestic spending.
It transpired the Australian economy grew 3.4 per cent in that September quarter. It was the largest quarterly lift in GDP since the 1970s, driven by a huge increase in household consumption.
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A surge in new jobs will add at least $20 billion to the federal budget in a new sign of the strength of the economic recovery, adding more to the nation’s finances than record prices for iron ore.
Treasurer Josh Frydenberg said the “substantial” gain would be confirmed in next week’s budget alongside major investments in aged care, mental health and more intensive training programs to help the unemployed.
Treasurer Josh Frydenberg.
Credit:Alex Ellinghausen
But the surprise revenue gains, far stronger than Treasury predicted only months ago, will not change the government’s timing on tax reform despite calls from Liberal backbenchers to bring forward sweeping income tax cuts due in 2024.
The owner of Manchester United was given a big wake-up call about respecting his customers, as Treasurer Josh Frydenberg puts the finishing touches on the Budget for his customers the voters of Australia.