New forecasts predict the coronavirus crisis will punch a A$360 billion hole in Australia's Federal Budget, but while most economists argue the government should not be trying to rush budget repair, many say major tax reform is urgently needed to assist the recovery. Treasurer Josh Frydenberg will be delivering a budget update to Parliament tomorrow, in lieu of what would normally have been the full 2020-21 Budget, which has been delayed until October due to the virus crisis. The report forecasts Australia's unemployment rate will not get back down to 5 per cent until late 2024. It is predicting that the Federal Budget will see an underlying cash deficit of A$143 billion this financial year, A$132 billion next financial year, A$52 billion in 2021-22 and $33 billion in 2022-23. Relative to the official forecasts unveiled just before Christmas, revenues are set to fall short by A$29 billion (or 6 percent) in 2019-20, and A$72 billion (16 percent) in 2020-21.

Source: The Standard May 11, 2020 03:45 UTC