The unemployment rate is now expected to remain near 6.6% throughout 2021, instead of soaring to almost 10% as economic forecasters expected six months ago.
The federal government will turn to tax cuts and post-JobKeeper income support as Australian households and businesses approach the so-called fiscal cliff in September.
Treasurer Josh Frydenberg has outlined a set of grisly figures in an address to Parliament, predicting Australia's quarterly GDP will fall at least 10% in June.
