The Australian Federal Treasurer Jim Chalmers will deliver a statement today on the condition of the Australian economy and government
The Australian Federal Treasurer Jim Chalmers will deliver a statement today on the condition of the Australian economy and government budget.
While inflation in Australia has hit record levels, its economy has largely outperformed other advanced countries. Australia maintains a low unemployment rate of 3.5% and its second quarter inflation rate of 6.1% is small compared to 9.1% in the United States and 8.6% in the Eurozone. Additionally, high commodity prices halved the country’s government budget deficit for the mid 2021-mid 2022 financial period. Nevertheless, Chalmers has indicated he will deliver a grim but realistic update as it relates to global food insecurity, supply chain issues and high government debt, dimming short to medium-term economic prospects.
This statement is likely the first step in preparing the public for the new government’s first budget—due in October—which is expected to contain several austerity measures to rein in inflation and budget deficits. This new budget will contrast greatly with the previous budget from May this year which included high spending to assist consumers with high prices. As a result, the halving of the fuel excise tax, introduced in May, is unlikely to be extended when it expires at the end of September.