Budget 2020: spend, business, spend

Australia’s 2020-21 Federal Budget was designed to get the private sector spending again.

Click image to zoom Tap image to zoom

The spending and initiatives announced – and there were many – were designed to get businesses to take some risk and spend some money. Tax incentives were added to the mix to encourage them to do so.

What the government's really trying to do is make sure the private sector can get back on its feet.”

There are also tax cuts for those households who have managed to retain their jobs – previously flagged but now brought forward to expedite any impact. Unfortunately the bulk of these don't actually fall into the current financial year – one of the few disappointments with this budget.

There is a sense this budget doesn't throw money into the economy quite quickly enough - particularly when we have the JobKeeper payment, which has supported employment and households through the crisis, falling away.

Now, the JobKeeper payment is, of course, an enormous part of the initial COVID stimulus package. It can't last forever. And what the government's really trying to do is make sure the private sector can get back on its feet, start spending again, and drive itself into a recovery.

The government is looking for the budget to support a better economic situation with more opportunity for jobs and a better and healthier economic future.


Cherelle Murphy is Senior Economist at ANZ

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

editor's picks

06 Oct 2020

Budget 2020: full coverage

bluenotes contributors |

bluenotes presents comprehensive coverage of the 2020-21 Australian Federal Budget.

06 Oct 2020

Budget 2020: the new era of fiscal leadership

Richard Yetsenga | Chief Economist, ANZ

Speaking on video, the ANZ Chief Economist scores the Federal Budget on three fronts.

06 Oct 2020

Budget 2020: engineering a recovery

Cherelle Murphy | Senior Economist, ANZ

Australian Federal Budget prioritises a private sector recovery, with fiscal conservatism tossed aside.