The likely scenario come this time next year is IMO: GDP down by 7% to say $2 Trillion Unemployment up to 14% Additional debt accrued via Corvid-19 handots etc: $500 Billion
Total Gove debt this time next year: $1.6 Trillion or 80% of GDP Interest only: $32 billion/year...possibly more if our credit rating drops.
Solution: Who Pays?
-PAYE earners will be incapable of paying without massive wage increased due to extra Corvid accrued debt. -Corporations that have benefited from our low dolar and or hoarders' demand wont volunteer higher taxes (eg: BHP, RIO, FMG Woolies Coles etc.)
In the past when we've had tough times the answer politically seems to leave it to Labor (eg: Post WW2, early 80s and the Recession we had to have.
The question is : Will a Neo-Liberal Coalition have the dangly bits to increase corporate tax or will it skin the working stiffs with higher GST & higher PAYE taxes?
Someone has to pay and persioners, welfare recipients and a further indebted working class will not be in a position to cough-up the lollies. Perhaps Politicians and the millionaire top end of the Civil Service can lead the way by consigning half the Future Fund to Treasury ? I know that that would only be a laxy $80 billion but it would be a start. Millions of Aussies will have to dip into their Super (tax or no tax,) simply to make ends meet.
