The Australian Financial Report, released today, highlights the challenges facing the post-Christmas economy as the Government prepares to unveil the Government’s Christmas cake package.
While there is a lot of focus on the delivery of the cake itself, there is also a lot on the economy.
The AFR report says there is no indication the Government is planning to introduce a direct benefit tax on goods and services, and there is little sign of a plan to introduce more revenue to help meet the costs of the new package.
Instead, the Government appears to be relying on the generosity of its citizens to make up for the shortfall in the retail market.
The report says Australians spend $8 billion on holiday and hospitality products each year, and this is a significant burden for the economy, with Australians losing $7.7 billion a year due to the lack of retail jobs.
There is also uncertainty over whether the Government will increase the GST or not, with economists warning that the new GST will be a big drag on growth.
The AFR reports that the Government has committed to introducing the Christmas cake in 2019, but has yet to confirm a date for the launch of the package.