2020 Federal Budget CEO Update - That's a Wrap On Budget Week

by AFIA

9 October 2020

This week the Federal Government unveiled the 2020 Federal Budget, with a strong narrative on getting Australian’s back to work and getting 2020-Federal-Budget-CEO-Update-That-s-a-Wrap-On-Budget-Weekbusinesses to invest to drive employment and rebuild our economy.
The measures announced are all about getting money into the economy through tax cuts, expense measures for capital spending, removing unnecessary barriers to business activity, and cash payments for the most vulnerable in our community.

The plan, one of the most important in our era, targeted measures that address the immediate requirements as a roadmap to recovery and also considered what’s needed for a prosperous future for Australia.

Treasury is forecasting a recovery next year from the economic shocks of the COVID-19 pandemic based on a number of key assumptions, namely:

• domestic outbreaks of the virus continue to emerge but are largely contained
• largescale lockdowns are avoided and restrictions continue to ease
• domestic borders are to reopen the end of the year
• international travel including by tourists and international students will remain closed off until late next year and then gradually return over time
• a COVID-19 vaccine is available around the end of 2021.

As I’ve highlighted in previous messages, it will take effort from us all to do the right thing to ensure Australia continues to be in a strong position to fight the affects of this global pandemic on our way of life. Significant domestic outbreaks and largescale lockdowns will only be avoided through social distancing and proper hygiene practices. We must get on with it – living COVIDnormal.

Over the week, AFIA has delivered Special CEO Updates and webinars to bring our members timely information on the 2020 Federal Budget and what it means for businesses, individuals and our community. We were fortunate to have the opportunity to speak to Alan Oster, Chief Group Economist, NAB on our webinar (see here for on-demand webinar) on Thursday where Alan reminded us all about what Keynesian economics really means, how a recession impacts on not just economic fundamentals, but behaviours too, and the important role private spending will play in our recovery from here. Today I had a vivacious session (see here for on-demand webinar) with Jason Falinski MP and Peta Murphy MP on the budget announcements, how fiscal and non-fiscal measures are, and will, support our recovery, including employment, digitisation and workforce skills, the opportunities and challenges we face with this crisis, and ensuring we take this time to create a modern Australia that is resilient, inclusive and sustainable.

There was a flurry of activity around the Budget announcement with the Treasurer Budget speech, the Treasurer post-Budget speech, the Opposition Budget reply speech, and many brilliant summaries, podcasts and content from our Associate members.

The Treasurer in his post budget speech acknowledged the road ahead remains challenging and the outlook uncertain and unpredictable. AFIA will continue to work with, and advocate on behalf of our members to ensure the continued growth of the industry by fostering innovation and competition, while not taking our eye off a strong focus on customer and community outcomes.

… that’s a wrap on budget week.