Category: Australian News

A significant lung cancer treatment option that costs approximately $88,000 a year will soon be available for as little as $6.60 per script, thanks to its expanded listing on the Pharmaceutical Benefits Scheme (PBS).
From 1 January 2021, Australians living with non-small cell lung cancer who have not had prior therapy will benefit from the listing of Tagrisso^® (osimertinib).
Without the PBS subsidy, patients might pay close to $8,000 per script or almost $88,000 per year for this treatment. An average of 1,120 patients per year could now pay as little as $41.30 per script, or $6.60 with a concession card.
Tagrisso^® is a ‘targeted therapy,’ which works on specific types of cancer cells where a specific mutation is present, to block the growth and spread of these cancer cells.
Following expert medical advice the Government is expanding access to this breakthrough medicine for the first-line treatment of patients with metastatic non-small cell lung cancer, who have a certain type of mutation in the lungs, known as Epidermal Growth Factor Receptor (EGFR) positive.
Tagrisso acts by blocking the activity of the EGFR, which causes growth and uncontrolled division of cancer cells.
An oral therapy, Tagrisso will help patients experience an improved quality of life, and see them able to access the treatment at home and not in the hospital.
The Australian Institute of Health and Welfare estimates that more than 13,000 new cases of lung cancer will be diagnosed in 2020. It is the fifth most common cancer diagnosed in Australia.
This listing has been recommended by the independent Pharmaceutical Benefits Advisory Committee (PBAC).
Since 2013, the Australian Government has approved more than 2,500 new or amended listings on the PBS.
This represents an average of around 30 listings or amendments per month – or one each day – at an overall investment by the Government of close to $12 billion.
The Government’s commitment to ensuring Australians can access affordable medicines, when they need them, remains rock solid.

Australian Greens Education spokesperson Senator Mehreen Faruqi has said that Alan Tudge’s appointment as Education Minister is a disturbing development.
Senator Faruqi said:
“Anyone who a federal court judge has found to have acted criminally is not fit to be a minister of the government.
“It’s no surprise that this is the sort of ‘talent’ the Prime Minister wants to elevate in the government’s efforts to defund and privatise education.
“This disturbing appointment shows how little the government values the education system.
“While many educators will be glad to see the back of Dan Tehan, sadly his replacement is no better.
“What we need is a return to free and universal early learning, fully-funded public schools, well-funded and fee-free TAFEs and universities, and serious government commitment to a world-class education system to drive our rebuild after the pandemic,” she said.
 

The Greens recognise the potential role of e-cigarettes in tobacco harm reduction but support a precautionary approach in the regulation of e-cigarettes.
The Greens support the recommendations of the majority Select Committee on Tobacco Harm Reduction report and have made some additional comments.
It is recognised that e-cigarettes can assist some to quit, but can also prolong smoking in others, and that further research of the benefits across a population, rather than on an individual-to-individual basis, is required.
The Greens share the view of many academics and public health officials that there is not enough evidence at a population level to claim that nicotine containing e-cigarettes have, on average, a positive benefit for all.
The Greens support calls to take a precautionary approach in the regulations of e-cigarettes to ensure we do not undo many years of outstanding public health campaigns to reduce the levels of tobacco smoking in Australia.
There remain deep concerns with the tobacco industry’s predatory tactics, particularly in encouraging and normalising vaping for young people and there are significant concerns about the active involvement of the big tobacco in the debate around regulatory reform of e-cigarettes in Australia.
It is very clear that e-cigarettes present an emerging market to the big tobacco industry, and subsequently they have an obvious interest in any regulatory reform that may restrict access and consumption.
The Greens support a prescription-based model for e-cigarettes containing nicotine until further research on the long-term impacts are completed.
The Greens recommend that GPs be urgently provided with opportunities to upskill in smoking cessation options, including the use of e-cigarettes, to ensure they are fully informed of all options when assisting patients.
The Australian Greens support the recommendations of the Majority Report and further recommend:
1. That any decision-making on e-cigarettes by the Australian Government be based on public health principles as part of a harm reduction approach, rather than commercial considerations.
2. The Australian Government continue to invest in evidence-based harm reduction strategies, incorporating new approaches as evidence of their long-term effectiveness becomes available.
3. Should the TGA recommend that nicotine containing e-cigarettes and nicotine liquids for use in e-cigarettes be available only via prescription, the Australian Government implement that decision and commit to reviewing that decision in two years’ time as more research and data becomes available.
4. GPs urgently upskill in smoking harm reduction and cessation options, including the use of nicotine containing e-cigarettes, to ensure they are fully informed of all options when assisting patients.
5. Prohibit the sale of nicotine containing e-cigarettes and nicotine liquids for use in e-cigarettes in convenience stores.
The full report can be found here.

“The economy continues to be underpinned by Government spending, with state governments’ investment in social housing and public transport responsible for a lot of the improved outlook,” Greens Economic Justice Spokesperson Senator Nick McKim said.
“But wages growth has been revised down following the Government’s announcement that they will reduce public sector wage increases.”
“Unemployment, underemployment and insecure work will continue to be persistent problems.”
“Tax cuts are not going to save the Australian economy. Instead Australia needs to get on board a green recovery with government spending on clean energy.”
“The transition is happening around the world, whether the Liberals and their fossil fuel donors like it or not.”
“MYEFO also shows that coal is doomed economically, with falling global demand as the world moves away from fossil fuels at a much faster rate than Australia.”
“It beggars belief that the Liberals are throwing taxpayers money at opening up new gas fields without the consent of Traditional Owners, rather than investing in renewables and helping fossil fuel communities to transition.”
“A $50m subsidy to the fracking industry is simply a crime against our climate.”
Australian Greens spokesperson on Family and Community Services Senator Rachel Siewert said:
This is yet another opportunity squandered to do what is best for our community and the economy and put money in the hands of those who need it most.
People in our community are facing Christmas and the new year with a cut to their JobSeeker payment that is dropping people further below the poverty line.
This is cruel and it is not good economic management. There is no economic ‘recovery’ unless no one is left behind.
People on JobSeeker, including single parents, disabled people and older women are being ignored, left behind in this so-called economic recovery.
We urgently need a permanent increase to Jobseeker that is above the poverty line.
The Greens are extremely worried about the impact the uncertainty of the Jobseeker rate is having on the mental health of Australians with the Christmas and New Year periods already difficult for so many people.

Today I am announcing changes to my Ministry which I propose to recommend to the Governor-General. The decisions reflect a strong focus on stability in key portfolios, together with a commitment to bring forward new talent as Australia continues its comeback from the COVID-19 crisis.
Stability and consistency are key at this time.
Key portfolios geared to Australia’s prosperity and security remain unchanged. These include the Treasury, Finance, Employment, Skills, Small and Family Business, Foreign Affairs, Defence and Home Affairs portfolios. The representation of the Nationals in the Ministry and associated portfolio responsibilities also remain unchanged under the leadership of the Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, the Hon Michael McCormack MP. The Ministry maintains record representation of women in Cabinet.
Following the appointment of Simon Birmingham as Minister for Finance in October, the Hon Dan Tehan MP will become the new Minister for Trade, Tourism and Investment. Dan brings strong credentials to this role as a former officer in the Department of Foreign Affairs and Trade, as well as a keen sense of the particular interests of regional Australia in an open, rules-based trading system.
The Aged Care portfolio will be brought into Cabinet with the Hon Greg Hunt MP as Minister for Health and Aged Care responsible for the Government’s response to the Aged Care Royal Commission. Senator the Hon Richard Colbeck will retain responsibility for aged care services, including delivery of residential and home care packages, aged care sector regulation and Senior Australians. He will also continue as Minister for Sport.
The Hon Alan Tudge MP will become Minister for Education and Youth with a clear brief of improving education outcomes and helping younger Australians navigate the challenges of a rapidly changing world. In recognition of the importance the Government places on driving down unemployment, the Hon Luke Howarth MP will become Assistant Minister for Youth and Employment Services.
The Hon Paul Fletcher MP will take on responsibility for urban infrastructure as Minister for Communications, Urban Infrastructure, Cities and the Arts.
The Hon David Coleman MP will become Assistant Minister to the Prime Minister for mental health and suicide prevention, a critical focus of the Government only heightened by the expected legacy of COVID-19.
Strengthening the economic team and in recognition of the growing importance of digital technology to Australia’s economic future, Senator the Hon Jane Hume will join the Ministry and take on expanded responsibilities as Minister for Superannuation, Financial Services and the Digital Economy.
Building on the demonstrated success of the Government’s housing policies in maintaining construction jobs during the COVID pandemic, the Hon Michael Sukkar MP will have expanded responsibilities as Minister for Housing, Homelessness, Social and Community Housing.
To further drive Australia’s pursuit of new economic opportunities in a post-COVID economy, Senator the Hon Jonathon Duniam will become Assistant Minister for Industry Development.
The Hon Alex Hawke MP will become Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs. Australia has yet again proven in 2020 that we are the most successful multicultural nation in the world and my Government will make every effort to ensure our country remains cohesive and united into the future.
Senator the Hon Zed Seselja will become Minister for International Development and the Pacific. The Government’s demonstrated commitment to our Pacific family extends far beyond the Pacific ‘step up’ with our vaccine strategy expected to be a key part of building even closer ties in 2021.
As part of bringing new talent into the executive, I am delighted to announce that Senator the Hon Amanda Stoker will become Assistant Minister to the Attorney General.
The Hon Ben Morton MP will continue in his role as Assistant Minister to the Prime Minister and Cabinet and will add responsibilities as Assistant Minister for Electoral Matters.
I thank the Hon Steve Irons MP for his work and passion and appreciate his making way for Andrew Hastie MP to enter the executive and become Assistant Minister for Defence.
An updated Ministry list is available at https://www.pmc.gov.au/sites/default/files/publications/ministry-list-proposed-20201218.pdf

MYEFO shows yet again that the Liberals are locking in inequality and damage from climate change, the Greens say.
“The economy continues to be underpinned by Government spending, with state governments’ investment in social housing and public transport responsible for a lot of the improved outlook,” Greens Economic Justice Spokesperson Senator Nick McKim said.
“But wages growth has been revised down following the Government’s announcement that they will reduce public sector wage increases.”
“Unemployment, underemployment and insecure work will continue to be persistent problems.”
“Tax cuts are not going to save the Australian economy. Instead Australia needs to get on board a green recovery with government spending on clean energy.”
“The transition is happening around the world, whether the Liberals and their fossil fuel donors like it or not.”
“MYEFO also shows that coal is doomed economically, with falling global demand as the world moves away from fossil fuels at a much faster rate than Australia.”
“It beggars belief that the Liberals are throwing taxpayers money at opening up new gas fields without the consent of Traditional Owners, rather than investing in renewables and helping fossil fuel communities to transition.”
“A $50m subsidy to the fracking industry is simply a crime against our climate.”
Australian Greens spokesperson on Family and Community Services Senator Rachel Siewert said:
This is yet another opportunity squandered to do what is best for our community and the economy and put money in the hands of those who need it most.
People in our community are facing Christmas and the new year with a cut to their JobSeeker payment that is dropping people further below the poverty line.
This is cruel and it is not good economic management. There is no economic ‘recovery’ unless no one is left behind.
People on JobSeeker, including single parents, disabled people and older women are being ignored, left behind in this so-called economic recovery.
We urgently need a permanent increase to Jobseeker that is above the poverty line.
The Greens are extremely worried about the impact the uncertainty of the Jobseeker rate is having on the mental health of Australians with the Christmas and New Year periods already difficult for so many people.

The Australian Government is providing $13.7 million to boost the integrity of sport in Australia through additional funding for both the National Sports Tribunal and Sport Integrity Australia’s efforts to tackle escalating and rapidly evolving integrity risks – critically, including child safeguarding.
Minister for Youth and Sport, Richard Colbeck, said the commitment, announced as part of the Mid-Year Economic and Fiscal Outlook (MYEFO), would strengthen the ability of sporting organisations in Australia to withstand these serious integrity threats.
“We are providing $10.1 million to Sport Integrity Australia to introduce an independent complaints handling process at all levels, from elite sports to the grassroots level,” Minister Colbeck said.
“This complaints handling process will be complemented by the independent dispute resolution mechanism provided by the National Sports Tribunal.
“This opt-in model will enhance the protections for Australian sport and the community against evolving integrity issues affecting sport domestically and abroad, including harassment, bullying and child abuse, illicit drugs, manipulating outcomes and code of conduct issues.
“This is an important measure to ensure a high level of independence if and when an inquiry is sought.  We know how important that can be and will ensure sporting bodies do not become a law unto themselves.
“The Australian Government has developed its National Integrity Framework covering Australia’s 98 National Sporting Organisations. This investment in Sport Integrity Australia and the National Sports Tribunal underpins the implementation of this framework and continues the work towards a stronger and fairer sporting sector across Australia.
“Australians should have confidence in the integrity of sport at all levels. They should have confidence that integrity matters will be handled both independently and fairly. This program is designed to help sports meet those expectations.”
From January 2021, Sport Integrity Australia will commence implementation of an independent and cost-effective assessment and treatment model for integrity complaints to be operational in March 2021. The funding will also support expanded education and awareness work, policy development, co-ordination, and compliance programs.
The National Sports Tribunal (NST) will also receive $3.6 million to extend its pilot program for a further 12 months, until 18 March 2023, following the significant disruptions from the COVID-19 pandemic.
The NST offers national level sporting bodies and their participants an opportunity to resolve disputes efficiently and affordably, including through mediation, arbitration, conciliation and case appraisal.
Minister Colbeck said the NST would be supported to deal with and complete valid applications made to up until 18 March 2023.
“The Australian Government wants the NST to continue to deliver faster, more cost-effective, independent and transparent sports dispute resolution services,” Minister Colbeck said.
“This will be particularly important to ensure that disputes that arise under the new National Integrity Framework can be resolved independently and fairly, so that sports, their participants and the Australian community can have confidence in the outcomes.
“We anticipate Australia’s peak sporting bodies, such as the Australian Olympic Committee, Paralympics Australia and Commonwealth Games Australia, will be able to utilise the NST for major future events such as the 2022 Winter Olympics and Paralympics, and 2022 Commonwealth Games.”
More information about the 2020-21 MYEFO statement is available online: www.budget.gov.au

An important education campaign will be rolled out to inform Australians ahead of the COVID-19 vaccination program.
The vaccination roll-out will be a complex task and it will be important that people understand the process with the first vaccinations on track for early next year.
Minister for Health, Greg Hunt said the Mid-Year Fiscal and Economic Outlook 20-21 (MYEFO) reinforces the Australian Government’s commitment to continue to protect the community and get lives back to normal through this pandemic.
“The information campaign, with funding of $23.9 million, will work in partnership with the states and medical experts, to explain the regulatory processes, the priority groups, timing and roll-out to assist people to understand how the vaccines work, and to be ready for when they can receive the vaccine,” said Minister Hunt.
“The vaccines will be voluntary and free, we encourage people to have the vaccine to protect themselves and their family.”
“It is essential that people understand that Australia’s medical regulatory processes need to occur before the vaccines are approved for use.  We are receiving data from overseas and this will assist in finalising the priority groups for the vaccinations, putting our health and aged care workers in the first wave along with elderly Australians who are at most risk from the virus,” Minister Hunt said.
The COVID-19 vaccine communications will include a national advertising campaign and communication specifically targeting priority groups, culturally and linguistically diverse (CALD) groups and Aboriginal and Torres Strait Islander people.
Over $40 million in funding is being provided to streamline processes necessary to the approval and distribution, so the clinical information can be assessed in real time.
The funding for Services Australia, the Australian Digital Health Agency and Therapeutic Goods Administration will allow necessary enhancements aimed at reducing existing manual processes and improving digital integration across these systems.
The Government is also improving critical capacity requirements for the Australian Immunisation Register, as the Government’s central resource for recording COVID-19 vaccinations so people will have a record of their vaccination.  This will be essential as all current vaccines planned for Australia require a two-vaccine process.
The Government is securing 20 million additional doses of the AstraZeneca COVID-19 vaccine. This brings the total number of doses to 53.8 million – enough for the entire Australian population.
The extra 20 million doses will be produced in Australia by CSL.
Additionally, a further 11 million doses of the Novavax vaccine will be purchased, bringing the total for this vaccine to 51 million.  This will be an additional whole-of-population vaccine should it be proven to be safe and effective.
A purchasing agreement is also in place for the Pfizer/BioNTech COVID-19 vaccine, with 10 million doses scheduled for early 2021.
Building Australia’s vaccine manufacturing capacity
The Australian Government is investing $1 billion to ensure Australia’s capacity to manufacture vaccines in the future, though its supply agreement with Seqirus.
The Government will extend the current supply agreement with Seqirus, ensuring long-term, onshore manufacturing and supply of products of national significance including pandemic influenza vaccines, Q fever vaccines, and Australian-specific antivenoms from 1 July 2024 through to 2036.
Under this agreement, Seqirus will invest more than $800 million in a new state-of-the-art biotech manufacturing facility in Melbourne.
More than $1 billion to support Senior Australians
MYEFO confirms the Morrison Government’s increased support for senior Australians with an additional $1 billion – including $850.8 million to increase in-home support, ensuring 10,000 more Australians can continue living independently at home for longer.
This investment also continues the Government’s actions to comprehensively respond to the Aged Care Royal Commission’s Interim Report and COVID-19 special report – ahead of the Final Report being delivered in February 2021.
Minister for Aged Care and Senior Australians, Richard Colbeck, said the Australian Government was quickly implementing recommendations from the Royal Commission’s special report on COVID-19, released in October 2020.
“This new home care funding is on top of the $1.6 billion investment for more than 23,000 packages announced in the 2020–21 Budget, and will increase the number of Australians receiving in-home care support to approximately 195,600 by 30 June 2021,” said Minister Colbeck.
While the population of those aged 70 and over has jumped by 28 per cent since 2012, home care packages have increased by over 200 per cent with funding tripling – or more than 10 times the growth in population of older Australians.
Aged care residents will be able to access up to 20 individual psychological services, with an additional $35.5 million to expand the eligibility requirements for the Better Access to Psychiatrists, Psychologists and General Practitioners through the Medicare Benefits Scheme initiative through to 30 June 2022.
More than $27 million will improve access to allied health professionals, such as physiotherapists, occupational therapists and exercise physiologists for individual and group therapy sessions.
An additional $11.1 million, over five years, will fast-track the implementation of the Serious Incident Response Scheme (SIRS) to better protect senior Australians in residential aged care, bringing its implementation forward to April 2021.
An additional $57.8 million will be provided to the states and territories to support their pandemic response in aged care.
Reducing stillbirth rates in Australia
The Morrison Government is providing $11 million over four years to continue work to reduce the rate of stillbirths around the country by 20 per cent, under the National Stillbirth Action and Implementation Plan.
Around 2,000 Australian families face the tragedy of stillbirth every year, about six per day – a rate which has changed little over the past 20 years.
Supporting Early Psychosis Youth Services and tackling mental health stigma
A total of $53 million has been allocated by the Morrison Government to extend the Early Psychosis Youth Services (EPYS) Program until 30 June 2022. Funding will be provided to Primary Health Networks to continue to commission the existing EPYS sites and a small amount of funding will also be provided to headspace National and Orygen to support this commissioning activity.
The funding will ensure young people have continuity of care and providers can have certainty during this period.
A further $1 million over two years will go to the National Mental Health Commission to develop a campaign to reduce stigma and discrimination towards people seeking mental health support.
The Productivity Commission Report into mental health noted that such a campaign could encourage the million Australians with a mental illness who have never sought support to reach out, and this could lead to a significant economic benefit.
Strengthening Primary Care – rural and regional primary care
To help address longstanding GP shortages in northern and north-western Tasmania, the Morrison Government is providing $2 million over three years to establish the General Practice Incentive Fund Tasmania (GPIFT) to attract and retain doctors to the region.
Building on the investment in the 2020-21 Federal Budget, this funding will provide a suite of incentives for doctors who relocate to the region and support building IT capability to provide telehealth and other technologies to improve patient access.
The new fund will include support for the local health sector to develop a collaborative primary care model to better integrate services and create a more sustainable workforce for the region.
The Government will also provide $1.0 million over three years to attract and retain GPs to the Peel region of WA and Wide Bay QLD respectively.
 New cancer, HIV and muscular atrophy medication added to the PBS
 Thousands of Australians each year will benefit from the addition of new medications to the PBS.

• Venetoclax (Venclexta^®) in combination with obinutuzumab provides a first-line treatment of patients with chronic lymphocytic leukaemia who have co-existing conditions and are unsuitable for fludarabine-based chemo-immunotherapy. This will benefit around 500 patients per year, who without PBS subsidy could pay up to $69,250 per course of treatment.

• Nusinersen (Spinraza^®) has been expanded to include children and infants genetically diagnosed with severe types of spinal muscular atrophy, but before the onset of symptoms. Without PBS subsidy, patients could pay more than $367,000 a year for treatment.

• Dolutegravir + lamivudine (Dovato^®) was expanded from 1 December 2020 for the treatment of patients living with HIV who have already used antiretroviral therapy. This listing will save patients more than $8,500 per year.

Protecting Australian sport from international integrity risks
The Morrison Government is providing $13.7 million to boost integrity in sport in Australia with funding for the National Sports Tribunal (NST), and Sport Integrity Australia’s efforts to tackle serious integrity risks.
Funding worth $10.1 million will support Sport Integrity Australia to introduce an independent complaints handling process at all levels, from elite sports to the grassroots level.
It will enhance the protections for Australian sport and the community against evolving integrity issues affecting sport domestically and abroad, including harassment, bullying and child abuse, illicit drugs, manipulating outcomes and code of conduct issues.
The NST will continue to deliver faster, more cost-effective, independent and transparent sports dispute resolution services, with funding of $3.6 million to extend its pilot for a further 12 months to deal with and complete valid applications up until 18 March 2023.
Australia’s bid to host the 2027 Rugby World Cup will be boosted with an investment of $8.8 million, which will assist Rugby Australia to develop a compelling bid to host the competition.
It’s anticipated the World Cup, if held in Australia, would attract up to 200,000 visitors and generate more than $2 billion for the economy, while also creating almost 13,000 full-time equivalent jobs.

The Morrison Government is continuing its support for world leading medical research by contributing an additional $172.5 million to supplement the Medical Research Future Fund (MRFF) in 2021-22.
The MRFF reached its $20 billion maturity in July 2020, however the historic low RBA cash rate has reduced the amount available through the MRFF to $455 million in 2021-22.
The additional funding will bring the MRFF disbursement for 2021‑22 back up to $627.5 million.
This funding will maintain the Government’s commitment to the 20 initiatives outlined in the $5 billion MRFF 10-Year Investment Plan, which focus on areas of unmet need or with potential for transforming health care and outcomes.
The Morrison Government is proud to support academic institutions and small to medium sized commercial organisations in conducting valuable research, tackling the wicked problems in health and helping improve the lives of Australians and people around the world.
The MRFF disburses funds primarily through competitive peer reviewed processes, with over 480 grants to the value of $1.3 billion announced since inception of the MRFF in 2015.
It focuses on four key themes – Patients, Researchers, Research Missions and Research Translation. Under these themes there are currently 20 initiatives including Clinical Trials Activity Initiative, Australian Brain Cancer Mission, the Dementia, Ageing and Aged Care Mission, Global Health Initiative, the Medical Research Commercialisation Initiative, and the Million Minds Mental Health Research Mission, among others.
The MRFF progresses vital research allowing Australians to benefit from life-changing medical discoveries. It also helps institutions and businesses leading the research to create jobs and encourages more Australian researchers to keep doing their work here.
A record $597.9 million will be disbursed from the MRFF to support medical research in 2020–21; the additional investment from Government means $627.5 million will be available for medical research in 2021-22.

The 2020-21 Mid-Year Economic and Fiscal Outlook (MYEFO) builds on the Economic Recovery Plan announced in the 2020-21 Budget.
In response to the crisis, the Government has provided $251 billion in direct economic support, with more than $138 billion having already flowed to cushion the blow for Australian households and businesses.
The 2020-21 MYEFO measures build on the substantial commitments announced in the 2020-21 Budget, including:

• $3.2 billion to extend the temporary Coronavirus Supplement and other income support measures
• $1.6 billion to secure access to COVID-19 vaccines and roll out a national Vaccination Program, as well as $500 million to extend vaccine support to our region
• $1.0 billion in new funding for aged care, including releasing an additional 10,000 home care packages
• $683 million for new and amended Pharmaceutical Benefits Scheme listings
• $506 million in new infrastructure investment commitments
• $241 million to extend the HomeBuilder program

These measures are underpinning a strong recovery from the COVID-19 pandemic, with Australia’s economic and health outcomes continuing to outperform almost every other developed nation.
Australia’s real GDP grew by 3.3 per cent in the September quarter after a fall of 7.0 per cent in the June quarter 2020.
On a calendar‑year basis, real GDP is forecast to grow by 4½ per cent in 2021 following a fall of 2½ per cent in 2020. This compares with 4¼ per cent in 2021 and a fall of 3¾ per cent in 2020 at Budget. The labour market continues to strengthen alongside the recovery in economic activity, with around 85 per cent of the 1.3 million people who lost their job or were stood down on zero hours in April now back at work.
The unemployment rate is forecast to peak at 7½ per cent in the March quarter 2021 down from an expected peak of 8 per cent forecast in the 2020-21 Budget.
The unemployment rate is now forecast to fall to 6¼ per cent in the June quarter 2022.
While these improvements are welcome, parts of the economy continue to be impacted by COVID-19 restrictions. There remains a long way to go until the economy fully recovers and the unemployment rate is brought down comfortably below 6 per cent.
Whereas labour market conditions have improved substantially for all age groups since the peak of the crisis, challenges exist for younger people and those in areas and industries most affected by virus shutdowns. Employment for 15-34 year olds is currently 3.1 per cent below its March level, while employment for people aged 35 and over is now above pre-COVID levels. This underscores the importance of the Government’s JobMaker Hiring Credit.
The global outlook remains challenging as COVID-19 outbreaks and containment measures continue and trade tensions continue to affect Australia’s exports.
As part of our responsible fiscal management, we continue to make prudent commodity price assumptions – with the iron ore price assumed to decline to US$55 per tonne by the end of the September quarter 2021.
The underlying cash balance in 2020-21 is expected to be a deficit of $197.7 billion, equivalent to 9.9 per cent of GDP. This is expected to improve over the forward estimates to a deficit of $66.0 billion in 2023-24 and to further improve over the medium term to a projected deficit of $45.7 billion or 1.4 per cent of GDP in 2030-31.
The $15.9 billion improvement in the underlying cash balance for 2020-21 since the Budget primarily reflects the faster-than-expected rebound in the economy.
The 2020-21 MYEFO includes $6.3 billion in new policy measures in response to the COVID-19 pandemic, bringing the Government’s direct economic and health support announced this year to $267 billion.
Extending the Coronavirus Supplement
The Government is providing $3.2 billion to extend the Coronavirus Supplement at a rate of $150 per fortnight and extend other temporary income support eligibility measures from 1 January 2021 to 31 March 2021.
Vaccines
The Government will provide $1.5 billion over two years from 2020-21 to secure a further 61 million doses of potential vaccine developed by Novavax and Pfizer/BioNTech. This is in addition to the University of Oxford vaccine.
COVID-19 vaccine investments will provide access to a total of 114.8 million potential vaccine doses.
HomeBuilder
Up to $241 million in additional funding to continue its support for the residential construction sector by extending the HomeBuilder program to 31 March 2021.
Aviation support
The Government will support the continuation of key inter-city and regional routes and smaller regional airlines through COVID-19. This includes extending the Domestic Aviation Network Support Program, guaranteeing major domestic air routes until the end of March 2021. The Government will also pay 50 per cent of domestic air services charges for key operators from January to end March 2021.
COVID-19 Consumer Travel Support Program
The Government will provide $128 million for a one-off targeted grant program to support travel agents. Payments will be scaled, with a minimum of $1500 for a business with a turnover of $50,000, up to a maximum payment of $100,000 for a business with a turnover of up to $20 million. The Government recognises that many travel agents continue to process refunds for consumers who have cancelled travel, at the same time as they manage ongoing uncertainty about international travel due to the impacts of COVID-19.
The 2020-21 MYEFO also includes new measures under the JobMaker Plan to create a stronger, resilient and more productive economy.
Infrastructure investment
The Government’s record 10-year transport infrastructure investment pipeline was accelerated and expanded to $110 billion in the 2020-21 Budget. The Government is committing a further $506 million over three years for priority transport infrastructure to support local jobs and the economic recovery.
Aged care
This MYEFO includes $1.0 billion in new investment in aged care, building on the $4.1 billion in new funding to the aged care sector announced since the 2019-20 MYEFO. $851 million is being provided for an additional 10,000 home care packages.
The Government has responded to the recommendations of the Royal Commission into Aged Care Quality and Safety’s special report on COVID-19 and is continuing to respond to COVID-19 in aged care, investing $147 million, including funding for new items on the Medicare Benefits Schedule to improve access to psychological treatment and allied health services in residential aged care.
The Serious Incident Response Scheme implementation has been brought forward to 1 April 2021.
The 2020-21 MYEFO is available at www.budget.gov.au