24 September 2020
Ahead of the 2020 Federal Budget, today Hon Josh Frydenberg MP, the Treasurer, has made several important announcements.
A new two-stage fiscal strategy that emphasises jobs and growth
This new fiscal strategy will be key to stabilising and reducing the debt-to-GDP ratio, but is a move away from building a budget surplus (for now).
The Treasurer stated that the previous strategy would be damaging to the economy, unrealistic in these conditions and risk economic recovery, essential service provision and job creation. The Treasurer also noted the prior commitment to investing in a stronger economy to boost productivity and participation, strengthening fiscal discipline, containing the size of Government, and achieving budget surpluses.
The new fiscal strategy can be summarised as follows:
Here’s a link to the Treasurer’s speech.
New single, simpler, faster, more cost effective insolvency process for small business
The Treasurer described the bankruptcy/insolvency law reforms as 'adopting key aspects' of the Chapter 11 system in the United States. Importantly, this is not about handing over the keys, but a process to devise a plan with creditors.
Key elements of the reforms include:
Here’s a link to the Treasurer’s media statement which includes a link to a new fact sheet about the insolvency reforms. And here's the fact sheet on the temporary relief for financially distressed businesses, previously announced by the Government.
AFIA is pleased with these announcements made today by the Treasurer, noting the proposals and recommendations we made in our Pre-Budget Submission focusing on three key areas:
Categories: CEO Updates