The Australian Government has decided to defer the 2020-21 Budget until 6 October 2020 in response to the coronavirus. It was scheduled to be delivered on 12 May 2020.

Treasurer Josh Frydenberg and Finance Minister Mathias Cormann said this would provide more time for the economic and fiscal impacts of the coronavirus, both in Australia and around the world, to be better understood.

‘It will also ensure that the 2020-21 Budget can set out the path to economic recovery,’ said Mr Frydenberg and Mr Cormann in a media release.

The Government will move supply bills in the Parliament this week to ensure the continuity of government in 2020-21.

The Government will also lift the debt ceiling from $600 billion to $850 billion to ensure it has the capacity to deal with the ongoing economic impact of the coronavirus.

In line with the decision to postpone the Budget, the next Intergenerational Report will be released in mid-2021 to ensure there is adequate time to produce long term projections that are based on robust budget estimates.


On the blog

JobKeeper Could Be a Depression Beater, by Chris Edmond, Steven Hamilton and Bruce Preston.

Open Letter to the Prime Minister: Extend Coronavirus Support to Temporary Workers, by Peter Whiteford.

The Government’s Fiscal Tool Kit for COVID-19, by Miranda Stewart and Peter Whiteford.

The Australian Government Opens a Coronavirus Super Loophole: It’s Legal to Put Your Money In, Take It Out, and Save on Tax, by Robert Breunig and Tristram Sainsbury.

Coronavirus Supplement: Your Guide to the Australian Payments That Will Go to the Extra Million on Welfare, by Peter Whiteford and Bruce Bradbury.

When It Comes to Sick Leave, We’re Not Much Better Prepared for Coronavirus Than the US, by Peter Whiteford and Bruce Bradbury.

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