How effective will the Federal Budget be in rebuilding the Australian economy?

The Federal Budget announced on Tuesday night comprised policies aimed at rebuilding Australia’s economy in response to the impact of COVID-19. But are those policies the best way to achieve that goal?

The RBA is forecasting unemployment to rise close to 10 per cent by the end of this year - AAP. Source: Photo by AAP: Dan Peled - 17 SEP 20

The Federal Government has produced a budget that bases economic recovery on incentivising business to grow and employ. It also offers tax cuts as another stimulus. Dr Peter McCawley AM, former Dean of the Asian Development Bank and Visiting Fellow in the Arndt-Corden Economics Division and the Indonesia Project at ANU, analyses the potential effectiveness of the budget policies.  

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The Labor leader, Anthony Albanese, and shadow treasurer Jim Chalmers, who says the opposition’s support for the Coalition’s income tax cuts is a given. Source: AAP