New forecasts predict the coronavirus crisis will punch a $360 billion hole in the Federal Budget but, while most economists argue the Government should not be trying to rush budget repair, many say major tax reform is urgently needed to assist the recovery.
Before examining what tax changes are being canvassed, it is worth understanding the scale of the economic and budget problems the Federal Government is facing, while also remembering that most state government budgets are also being hit hard.
Treasurer Josh Frydenberg will be delivering a budget update to Parliament tomorrow, in lieu of what would normally have been the full 2020-21 Budget, which has been delayed until October due to the COVID-19 crisis.