Australian Prime Minister Anthony Albanese has acknowledged that ex-tropical cyclone Alfred will have a significant economic impact, affecting businesses, workers, and local economies across impacted regions.
According to The Sydney Morning Herald, the federal government is now prioritising recovery efforts, reallocating resources to aid those affected. This shift has led to the postponement of election plans, with disaster relief measures being integrated into the upcoming 25 March budget.
Economic disruption from Alfred
Despite being downgraded from a tropical cyclone, Alfred is still producing winds of up to 85 km/h, with towns such as Lismore bracing for widespread flooding. Businesses have been forced to close, and many people are unable to go to work, disrupting local economies.
Speaking from Canberra’s National Situation Room, Albanese stressed that the storm’s effects were already being felt.
The impacts are already being felt, and there is worse to come in the hours ahead, we must remain vigilant, – he said.
The full economic consequences remain uncertain, but the federal government is preparing to assess the damage in the coming days. Albanese confirmed the government’s commitment to addressing the financial toll, stating:
This will have an impact on the national economy. There’s no question about that. Already, it’s having an impact. Businesses are closed, people are unable to go to work.
Government Response and Financial Support
In response to the crisis, the federal government has activated disaster recovery payments of £1,000 for adults and £400 for children. Additionally, £1 million recovery grants are being allocated to each affected local council to aid in rebuilding efforts.
With the March 25 budget fast approaching, the storm’s economic impact has added urgency to discussions on cost-of-living relief. Reports suggest that energy bill assistance could be a key component, with speculation that the government may extend the £300 rebate currently set to expire in June.
The expenditure review committee has already finalised most budget measures, which have undergone full Treasury costings. This means Treasurer Jim Chalmers and Finance Minister Katy Gallagher have the authority to finalise policies with Albanese, ensuring that recovery efforts are adequately funded.
Election Timeline Pushed to May
Originally, an April 12 election was under consideration, but Albanese confirmed that the government will now push the vote to 3, 10, or 17 May. The decision was made to avoid interfering with disaster recovery efforts and to steer clear of major public holidays such as Easter and Anzac Day.
The Prime Minister had until 10 March to call an election for April 12, ensuring the constitutionally required 33-day campaign period. However, given the storm’s impact, all April election dates have now been ruled out.
With the federal budget approaching and the economic impact of Alfred still unfolding, the coming weeks will be critical for both the government’s response and voter sentiment ahead of the election.
