Australia’s ongoing economic recovery from the COVID-19 recession – with more people back in work and increased household consumption – has delivered South Australia an improved GST estimate for this financial year.
The Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) today shows SA’s estimated GST grant revenues for 2020-21 are $300 million higher.
Treasurer Rob Lucas welcomed the improved forecast GST revenues, however said it meant the massive $1.3 billion write-down in forecast GST grant revenues contained in the State Budget 2020-21, will now be $1 billion.
“This is a further optimistic sign that the national economy continues to recover from the greatest economic challenge of our time in COVID-19, with more people back in work and household consumption improving,” said Mr Lucas.
“Today we’ve seen South Australia’s unemployment rate plunge to 6.2 per cent (down 0.8) – the lowest unemployment rate of all the states – and the first time that’s happened in more than a decade.
“It follows leading independent surveys which show rebounding local business confidence which bodes well for ongoing economic recovery and jobs growth.
“The latest ANZ/Property Council of Australia survey of property council professionals shows confidence in SA has soared to pre-pandemic levels, while the BankSA State Monitor revealed the biggest bounce in business confidence since the survey started 23 years ago.”