On Tuesday, 6 October 2020, Federal Treasurer Josh
Frydenberg handed down what was billed as one of the most
significant Australian budgets since World War II (after being
delayed from the usual May delivery). The COVID-19 crisis has
already called for unprecedented government support for business,
families and individuals and the budget includes a continuation of
that theme.
The 2020-21 budget is geared towards building – jobs,
infrastructure and business confidence – as a means for the
Australian economy to stabilise and be sustained with the ultimate
aim of growth to be realised as the COVID-19 health crisis
eventually subsides.
However, the spending measures that will support the repair to
the economy will come at a significant cost. The budget deficit for
2020-21 is forecast to reach $213.7 billion. Net debt will reach
$703 billion in 2020-21 (36% of GDP), rising to a height of $966
billion by June 2024 (44% of GDP).
