It’s official: tough economic times ahead

It’s official: tough economic times ahead

The Lighthouse is the original source of this article.

The Government’s announcement that JobKeeper and JobSeeker payments will continue in reduced form beyond September will be welcome news to thousands of Australians relying on them, although the reductions will mean financial hardship for many.

It is useful to remember just how extraordinary this decision is. The current government was re-elected on a platform opposing increases in taxation and government spending and committed to defending a surplus.

Now, after seven years in office, it has yet to produce a surplus and is overseeing a substantial increase in spending. That change reflects the reality of COVID-19, but also the fragility of our current, very low-spending model of social protection, suggesting a permanent change is needed

The Lighthouse is Macquarie’s online news platform.