Why the Australian economy could be in trouble in the next two years

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Posted February 14, 2019 16:31:59 The Australian economy is set to be hit with a big jump in unemployment in the coming years due to an economic relief package announced by Prime Minister Malcolm Turnbull last week.

Key points: The Turnbull Government has promised to bring down unemployment from 12 per cent to 6.5 per cent by 2020.

But the Government is already under pressure to bring it down even further, as it looks to deliver more tax cuts and welfare reforms in the final weeks of its term.

The Government says it will cut taxes, introduce a higher minimum wage, and increase the national childcare payment.

It will also increase the age of entitlement from 21 to 24.

But critics have slammed the Government for making the concessions without fully understanding what it is actually doing.

What is the economic relief scheme?

The Coalition announced the new package on Tuesday, but it only applied to the state and territory governments.

Mr Turnbull has said he has decided to make the concessions, after being warned that he will have to deliver “a massive package” of reforms if he wants to get the job done.

What it will mean for workers and the economyThe Government is committed to delivering more tax relief for the rich.

It is committed also to delivering a tax cut for the super-rich.

But it has yet to set out a plan for how this will work.

Mr Shorten says he believes Mr Turnbull has gone too far, by promising a massive tax cut and not providing details on how this is going to be achieved.

“He has said that we will do a massive package, but he hasn’t told us what that package is,” he said.

“We don’t know what the package will be.

So the only thing we have to do is make sure that this is a big package.”

Mr Shortens also says he is not convinced that the Government has put in place the necessary infrastructure and a system of tax and transfer concessions to ensure that the measures are delivered.

“I think they are saying the Government will be giving you a tax break and we’re going to give you a transfer, but they’re not giving us details on what the transfer is,” Mr Shortens said.

The Opposition leader says he will be pressing the Government to provide details on exactly how the $4 billion in tax relief is going back into the economy.

“What are the details of the transfer?

How is it going to benefit those on the lower income?

What are the specifics of the tax relief package?” he said on ABC Radio.”

If you have a government that’s not doing the things that they promised in the first place, it’s going to make it harder to get things done.”

Mr Turnbull says he hopes the package delivers $10 billion to boost the economy in the months ahead.

“But we are not going to get $10bn in tax breaks,” he told ABC Radio on Tuesday.

“That’s not what I’m talking about.”

Mr Baird says the Government was only “pushed” to do more by the Opposition.

“It was pushed on to us by the Greens, by the Left, by all the opposition parties, and by the media,” he says.

“So now they’ve got it on their own, they’re going out there and they’re saying, ‘Look, this is what you’re going for, you’re not going for it, we’re not doing it’.”

Mr Baird said he would ask his counterpart to provide more details of what he believes the package is really about.

“The Labor Party’s position is to deliver tax cuts for the richest and tax breaks for the least wealthy,” he added.

“They will only deliver this package if they deliver these tax cuts.”

What are people saying about the plan?

The Coalition is expected to deliver about $5 billion in additional tax relief in the new year, as part of its economic package, with a number of other measures included in the package.

“There’s no doubt that this will be a huge boost to the economy,” Mr Baird said.

What does this mean for families?

The package includes measures to lift up to 7 per cent from the superannuation tax rate and reduce it by $2,000 to $2.50 per week.

This will increase the number of Australians with superannuities from 2.3 million to 3.7 million.

What will this mean in terms of income?

The amount of income you will get from this tax relief will vary depending on your age.

The average age for Australians will be up from 20 to 24 years, up from 25 to 34 years, and up from 35 to 44 years.

What’s next?

The Government has set a target of hitting 12 per to 6 per cent unemployment by 2020, but experts say it will be much harder to achieve that.