Mid-Year Economic and Fiscal Outlook

Image shows five notes of Australian currency

Treasurer Josh Frydenberg released the Commonwealth’s Mid-Year Economic and Fiscal Outlook (MYEFO) on Monday, an update of Australia’s economic and fiscal outlook from the previous budget.

The MYEFO also takes account of all decisions made since the release of the budget which can affect expenses and revenue and hence require revision of the budget position.

This MYEFO also reflects commitments made by the Morrison Government during the May 2019 election campaign as well as recent announcements for drought and road funding.

Treasurer Frydenberg said the budget was on track to achieve a surplus in 2019/20 with the forecast trimmed to $5 billion from $7.1 b.

The economy was slowing due to weak momentum in the global economy and the effects of drought and bushfires.

ALGA has reviewed the MYEFO and highlighted below are some of the measures that may be of interest to local government, bearing in mind that these measures have been previously announced. 

For the comprehensive list of new expenditure please see Appendix A of the MYEFO papers.

Drought Response

  • confirms previous announcements
  • $5m in 2019-20 to support child care centres experiencing decreased demand and financial pressure as a result of drought

Investing in Regional Australia – additional university centres

  • $15m over four years to deliver on election commitment, to establish a further five Regional University Centres.

Busting Congestion in the Environmental Assessment Process

  • $25m over two years to work through the backlog of environmental approval applications with a focus on major projects.

Progressing a ban on the export of waste

  • $15m over two years to implement election commitment to ban export of waste plastic, paper, glass and tyres.

Disaster Preparedness Initiatives

  • Confirms announcements made on 12 December

Safer Communities Fund

  • $20m over four years to support local crime prevention, initiatives addressing hot spots, community security and anti-social behaviour.

Community Development Grants – new projects

  • $404m to deliver new projects that support local communities across Australia

Improving road safety

  • $12.9m over two years

Infrastructure Investment program – Roads of Strategic Importance and Urban Congestion Fund

  • $111.5m over four years for specific projects Roads of Strategic Importance projects.
  • $210m over two years for urban congestion fund.

National Freight and Supply Chain Strategy

  • Additional $3.9m over three years

Supporting infrastructure investment and services

  • $34.5m over four years including for local infrastructure programs

National Australia Day Council

  • $12.8m to support Australia Day Services

Improving social connections to older Australians

  • $10m over four years to establish seniors connected program

New Deregulation Agenda $26.8m to develop an online data base for bio-diversity as first step towards national approach