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MB has spent a lot of time focusing on the ‘fiscal cliff’ facing Australian households once emergency income support is wound back from October, specifically:
- JobKeeper will be reduced from $1500 to $1200 ($750 part-time); and
- JobSeeker will be reduced from $1100 to $815.
This ‘fiscal cliff’ is illustrated nicely below by the Grattan Institute, which estimates that these changes will reduce income support from $18 billion a month (10.7% of monthly GDP) to $3 billion a month (1.9% of GDP) for the six months beyond:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.