Australia is set for more than a decade of deficits between 2008 and 2019, with Commonwealth net debt projected to peak at 18% of gross domestic product, according to a Grattan Institute working paper published yesterday.
Fiscal challenges for Australia warns the reality may be worse than projections.
Generation Y are set to bear the burden of Australia’s deficit with Grattan research showing each $40 billion dollar deficit increases the lifetime tax burden for households headed by a person aged 25 to 34 by $10,000.
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The working paper found deficits are not likely to improve as the falling terms of trade and lower nominal economic growth drag on revenues at the same time as the government needs to fund substantial new policy initiatives.
200,000 homes and businesses added to the NBN
The NBN’s quarterly construction update reveals more than 200,000 homes and businesses across the country have been added to the rollout of Australia’s broadband network.
Communities added to the plan include parts of Margaret River in the South West and Kalgoorlie in Western Australia; Buderim on Queensland’s Sunshine Coast and Springfield in Greater Brisbane; Port Macquarie on the NSW Mid North Coast as well as Ryde, North Sydney and North Manly in Sydney along with Portsea on Victoria’s Mornington Peninsula and Beaconsfield in Greater Melbourne.
“Today, around one in ten homes and businesses can connect to the NBN network,” Greg Adcock, chief operating officer, at the NBN said in a statement accompanying the update.
“Our recently renegotiated construction contracts give us the confidence to schedule more than double that amount to start construction over the next 18 months.”
Market momentum continues
After a steep climb before 11am, Australian shares are levelling out but there is positive momentum as we head towards midday.
Tristan K’Nell of Quay Equities says commodity stocks are shrugging off volatility ahead of US employment data tonight.
“The Australian share market continuing its momentum from yesterday today, to open the day on a positive front as a strong lead from Wall Street combined with news that Greece would move ahead with its planned referendum for Sunday to offset a volatile night in Crude Oil & Iron Ore trading,” he says.
The S&P/ASX200 benchmark was up 32.8 points to 5548.5 points at 11.55AM AEST.
On Wednesday, the Dow Jones closed up 0.79%, rising 138.40 points to 17757.9 points.