"Employers are looking to this week's Federal Budget for measures that assist and secure the recovery of activity, confidence, investment and employment in the wake of the COVID-19 crisis," Innes Willox, Chief Executive of the national employer association Ai Group, said today.
"The challenge to deliver for the community amid the worst recession since the 1930s cannot be underestimated. Without the fiscal support to date, Australia's level of employment and the incidence of business failure would be substantially greater than we have experienced.
"Looking ahead, further fiscal measures are required before this job of warding off a more severe downturn is done. The human, economic and fiscal costs we have experienced during the COVID crisis would have been much higher without the stimulus already delivered or announced: a case of spending money to avoid losing more money.
"While additional fiscal measures will add further to the deficit and to the stock of debt, as the Reserve Bank has said, Australia's level of government debt is manageable and is considerably lower than in most other developed countries. Further, with interest rates set to remain low for a number of years, the cost of servicing that extra debt is also low.
"This should give the Government confidence to make the big investments needed to rebuild our economy.
"That is not to say that we should permanently put aside the objective of rebuilding our fiscal strength. Indeed, it must remain a priority and we will need to take decisive steps to restore our fiscal strength over coming years, including in relation to changes to our pattern of taxation.
"The Budget also presents an opportunity to act on measures that will rectify the underlying weaknesses in the economy that were evident prior to the onset of the COVID-19 crisis," Mr Willox said.
Ai Group's recommendations for the October Federal Budget include:
The full Ai Group Budget Submission is available here.
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