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All eyes will be on the upcoming Federal Budget and what measures the Morrison Government intends to introduce to ensure the economy maintains a positive trajectory post-recession.

With JobKeeper having ended, businesses no longer have a guaranteed safety net in the event of further lockdowns. The economic data for Australia fares well compared to other nations but many remain anxious that the turbulent economic times are far from over.

Treasurer Josh Frydenberg has already flagged that the objective of his third Budget will be to achieve a ‘private sector led recovery’. The Prime Minister has also indicated several measures aimed at supporting women. This includes funding to improve female superannuation savings, policies to address domestic violence and further childcare subsidies.

On a political level, the Budget will attempt to frame the Government as being in control of the recovery. Expect the Coalition to argue at the next election that Australia shouldn’t change horses mid-stream as we transition out of the pandemic. Labor will no doubt try to build a narrative that the government is mishandling the recovery phase, and argue that the vaccine rollout has been botched. With Newspoll showing a tight two-party preferred result, both sides of politics will feel confident when Australians next head to the polls either late this year or in the first half of 2022.

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