No travel until the END of next year: Treasurer says overseas holidays won’t restart until most Aussies have been vaccinated against Covid-19
Border restrictions are expected remain in place until the end of next year, Treasurer Josh Frydenberg said on Thursday.
In his mid-year economic update, Mr Frydenberg said the October budget’s prediction that international borders would stay closed for another year remains unchanged.
The government has banned Australians from leaving since March to stop tourists travelling to Covid-infected countries and bringing home the deadly disease.
Foreigners are not allowed to enter unless they have an exemption or are coming from New Zealand.
In his mid-year economic update, Mr Frydenberg said the prediction in the October budget that international borders would stay closed for another year remains unchanged
The October budget says: ‘Inbound and outbound international travel is expected to remain low through the latter part of 2021, after which a gradual recovery in international tourism is also assumed to occur.’
In his speech, the treasurer said that outlook has not changed despite the expected roll out of two vaccines in March which are forecast to reach the whole population by the end of 2021.
‘Assumptions around slower population growth, negative net overseas migration, and the timing of the opening of international borders are unchanged since budget,’ Mr Frydenberg told a press briefing.
Travel may be allowed with New Zealand, which has eliminated Covid-19, after Prime Minister Jacinda Ardern said she would consider a travel bubble in the New Year.
The mid-year update revised the budget deficit from a record $213.6billion down to $197.7billion as the nation recovers faster than expected from lockdowns.
About 640,000 fewer people are on JobKeeper than expected.
The economy has also been boosted by a high iron-ore price. The October budget predicted it would fall to US$55 by June but the government now believes it won’t hit this level until September.
Prices of the mineral have reached their highest levels in 12 years as China demands more to make steel and production in Brazil remains down.
In his mid-year economic update, Mr Frydenberg said the prediction in the October budget that international borders would stay closed for another year remains unchanged
Chris Richardson of Deloitte Access Economics said this rise is hugely benefiting Australia which exports about half of the world’s iron ore.
‘The bottom line is that China’s trade war with Australia is making us money rather than losing it,’ Mr Richardson said.
‘To be clear, we’ve lost money on everything from lobsters to wine. But we’ve more than made that up in overall terms thanks to iron ore – and the taxman will be a considerable beneficiary of that.’
The unemployment rate fell to 6.8 per cent in November as 90,000 people joined the workforce during the month.
Economists had forecast a 40,000 rise in employment, with the jobless rate remaining at October’s level of seven per cent.
Earlier this week, the Reserve Bank said the jobless rate is now unlikely to reach eight per cent as previously feared.
Treasury is expected to have upgraded its unemployment forecasts when Treasurer Josh Frydenberg hands down his mid-year budget review later on Thursday.
Australian Bureau of Statistics data shows 84,200 full-time jobs were created in the November, along with 5800 part-time positions.
The participation rate of those people in work or seeking employment rose to 66.1 per cent from 65.8 per cent.
Tensions between Beijing and Canberra have helped push up the iron-ore price as importers scramble to get hold of the mineral
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