With a softening labour market, it is time for the government to focus on job creation and targeted fiscal stimulus. The government would be wise to lift Newstart and home in on families with children by increasing Family Tax Benefits. Finally, we should pilot a jobs guarantee program for those over 50 and people living in rural and regional Australia. says Joe Zabar, Deputy CEO CSSA
The Reserve Bank of Australia’s recent decision to lower the official cash rate by 25 basis points to 0.75 per cent should be sounding alarm bells for the government. This latest cut is the third since May 2019 and reflects ongoing weakness in the Australian economy.
Treasurer Josh Frydenberg’s attack on banks for failing to pass on the full rate cut to consumers is a political distraction. Frydenberg and his Treasury officials are well aware of the precarious state of the Australian economy, but they dare not name it for fear that any negative sentiment from the government could trigger further unravelling of the economy and their prized surplus.