2020 has been a strenuous year for us all. It’s clear that the widespread economic impact of the coronavirus outbreak continues to put our economy, businesses and workers under the strain of our first recession in nearly 30 years.
On 6th October, Treasurer Josh Frydenberg handed down Australia’s 2020 Federal Budget where he outlined the government’s Economic Recovery plan to save jobs, rebuild our economy and secure our future.
It’s true the Budget showed a significant deficit ($213.7 billion), but that isn’t surprising given the expense of supporting more than five million Australians through the COVID-19 crisis. Jobkeeper, Jobseeker, small business support - all of the measures implemented before now have kept our economy afloat, and they all come at a cost.
Plus, while the numbers are high, it’s not all negative, as you might expect.
In fact, in comparison to other economies, the Budget result could even be considered optimistic. Australia’s net debt as a share of the economy will peak at just half of that in the United Kingdom, around a third of that in the United States and around a quarter of that in Japan today.
The Budget results, new measures and government support are what Australia needs to help rebuild our economy. From small to large businesses, employees to jobseekers, there is something in the 2020 Federal budget to support all Australians during these volatile times.
Importantly, the Budget presents a plan for our future, a path for recovery, of hope for our economy and lays out a plan to revitalise jobs and businesses.
The new JobMaker hiring credit will support nearly half a million young Australians in work, record investment in skills and training will strengthen the workforce and tax incentives will unleash a wave of investment.
Those of us in the recruitment industry have our part to play in our economic recovery of Australia. In times of recession our sector is able to support both organisations and jobseekers and guide them through hardships ahead. Randstad Risesmart has already helped many Australians transition from their existing employers into new jobs, whilst Randstad Recruitment Consultants are working hard to place candidates in the right roles - all of this is vital as we shape a stronger workforce in the new normal.
The Budget outcome is positive in its support for business. It gives organisations an opportunity to capitalise on the new measures laid out in the Budget and support themselves through this crisis.
Then when the recovery comes, I believe it will be those companies who have realigned themselves to the ‘new normal’ who will emerge from the other side of this pandemic quicker, and maybe even stronger than before.
To give you guidance as to what this budget means to you, our team has produced a HR specific Federal Budget 2020 report. We have broken down the key announcements and reviewed how it will affect businesses and workers.