Australians are growing in confidence as the economy starts to recover from the coronavirus pandemic fallout but it has yet to translate into renewed spending.
The weekly ANZ-Roy Morgan consumer confidence index – a pointer to future household spending – is released on Tuesday.
It has risen seven weeks in a row – taking it to its highest level since late May – and been buoyed more recently by this month’s personal income tax-cutting budget.
However the latest reading won’t take into account the sweeping easing in Victoria’s COVID-19 restrictions announced by Premier Daniel Andrews on Monday.
The Australian Taxation Office will have the opportunity to update how those tax cuts are being rolled out when they appear with Treasury’s revenue group before a Senate estimates hearing on Tuesday.
Treasury secretary Steven Kennedy appeared before the hearing on Monday, telling senators the recovery from the biggest economic contraction on record is under way.
He believes the Morrison government’s budget response to the pandemic should have a greater impact on the economy in a low interest rate environment.
The hearing comes against the backdrop of speculation the central bank could ease interest rates even further as soon as its board meeting on November 3 – a gathering Dr Kennedy will attend.