Highlights
- Budget will be delivered in October amid COVID 19 disruptions
- GDP is forecast to be 10 per cent down in June quarter
- Unemployment could rise to ten per cent
Australia's Budget is now scheduled to be delivered in October but Treasurer Josh Frydenberg on Tuesday said the economic data provides for a sobering outlook.
Mr Frydenberg told parliament the underlying cash deficit at the end of March was $22.4 billion - almost $10 billion higher than the government's forecasts.
Treasury is predicting the gross domestic product will fall by more than 10 per cent in the June quarter which would be the highest drop on record.
He says a rise in the unemployment rate to around 10 per cent will happen quickly.
"The Treasury is forecasting the unemployment rate to reach around 10 per cent or 1.4 million unemployed in the June quarter.
"The five percentage point increase in the unemployment rate is expected to occur over three months compared to the three years it took the unemployment rate to rise by the same amount in that devastating period of the early 1990s."
Growing tensions with China could make the coronavirus pandemic even more painful for the economy with Australia's largest trading partner just announced it has suspended imports from four Australian abattoirs.
The suspension comes days after China announced plans to put an 80 per cent tariff on Australian barley.
The bilateral relationship is being tested as Australia is part of a push for a global inquiry into the origins of COVID-19.
People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits.
Testing for coronavirus is now widely available across Australia. If you are experiencing cold or flu symptoms, arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.
The federal government's coronavirus tracing app COVIDSafe is available for download from your phone's app store.
SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments. News and information is available in 63 languages at sbs.com.au/coronavirus
