THE Federal Government is assuming that the current ban on international travel out of Australia will be lifted from 01 Jan 2021, but numbers will still remain at low levels until 30 Jun next year, according to a budget update released yesterday by Treasurer Josh Frydenberg.
The formal July 2020 Economic and Fiscal Update includes a range of key assumptions, including that “between Jul and Dec 2020, only citizens, permanent residents, New Zealanders and a small number of international students are assumed to be able to travel to Australia, based on announced policy to date”.
However, the situation is forecast to change from the start of 2021, with the papers indicating that “from 01 Jan to 30 Jun 2021, it is assumed that the travel ban is lifted, but that a two week quarantine period is required of arrivals to Australia”.
This would lead to the resumption of arrivals by temporary and permanent migrants, the update noted, but at lower levels overall than normal.
And although the budget papers confirm dramatic falls in the number of Australians travelling overseas since the beginning of the year, “it is likely that a share of the spending usually undertaken overseas will be redirected to consumption, including domestic travel”.
Other assumptions in the papers include expectations that the Victorian border with NSW and South Australia will be closed until 19 Aug, while “international travel is assumed to remain at low levels until the end of the Jun quarter 2021”.
“Spending on travel should also improve as interstate border restrictions are expected to be gradually relaxed, although international travel will remain subdued for some time,” the papers added.
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Source: traveldaily