On Tuesday, the Treasurer handed down the first post-pandemic Federal Budget and in doing so continued the already extraordinary support that the Government has provided to business over the past six months.
The cost of programs such as JobKeeper has been immense but has done the job it was meant to do by saving jobs. If that initial phase was all about protecting businesses and their employees, the next phase outlined in this Budget is all about enabling the private sector to lead the economic recovery out of this crisis.
We have seen an ongoing focus on jobs with incentives to employ under 35-year-olds and subsidies for all businesses taking on apprentices. This support along with JobKeeper 2.0 which will be available for eligible businesses is expected to see unemployment stabilise over the next four years.
The Budget has also emphasised the importance of encouraging businesses to invest and has gone beyond the instant asset write-off by allowing businesses with an aggregated turnover of less than $5 billion to deduct the full cost of new eligible depreciating assets. Consumers will also be encouraged to spend with more than 11 million Australians given a tax cut.
Hopefully, these measures will have the desired effect and the economy will spring back into life. Hopefully, foot traffic will increase at Dealerships and more sales will be completed.
While much uncertainty remains, we have seen the Government take expensive and considered action which it believes will see us overcome this recession, bring down the unemployment rate and inject confidence back into the Australian economy.