Ex-Cyclone Alfred has significantly impacted Australia’s economy, with Treasurer Jim Chalmers announcing a $1.2 billion deficit in the forthcoming federal budget. This natural disaster has forced the government to extend disaster recovery payments across various regions in Queensland and New South Wales, including major areas like Brisbane and Ipswich. Eligible individuals can receive a one-off payment of $1,000 for adults and $400 for children.
Chalmers indicated that the repercussions of Cyclone Alfred would result in a notable dent in economic output, contributing to a potential 0.25% drop in GDP. The funds allocated for the disaster recovery are a part of a broader $13.5 billion budget allotted for disaster response efforts. He acknowledged the anticipated rise in costs for fruits, vegetables, and building materials due to the cyclone’s destruction, indicating substantial implications for the budget overall.
The treasurers reflected on previous budgets, which recorded surpluses totalling $200 billion, and conceded that the forthcoming budget would reflect a deficit, albeit significantly less than that of past administrations. The government had initially planned to deliver the budget on March 25, but this has now been overshadowed by the cyclone’s impact.
Cyclone Alfred, which struck on March 8, initially presented as a category 2 storm before being downgraded. It affected approximately five million residents and left over 450,000 homes without power. The atmospheric conditions led to significant work hours lost, with businesses closed across the region.
Both Chalmers and Prime Minister Anthony Albanese addressed the cyclone’s aftermath in the media, with Albanese prioritising community support over political matters during this crisis. The Prime Minister confirmed the postponement of an anticipated federal election originally slated for March, as the cyclone’s timing necessitated a focus on emergency responses. The budget will still be released as planned, with the election expected to take place in May. This situation has underscored the pressing need for disaster preparedness and recovery within the affected communities.