Significance
The strategy should support the economic recovery that is already underway following a year of pandemic-related restrictions. There will be more spending on infrastructure and additional tax relief for businesses and workers, with the result that public debt will remain high for at least a decade.
Impacts
The skills shortage affecting business investment is likely to continue until international travel and migration normalise in 2022.
Australia will hold onto its AAA credit rating despite the growing debt load, but the outlook has become more negative.
The coalition’s expanded social agenda will weaken the opposition Labor Party ahead of the pending general election.