Yasser El-Ansary
“The Federal Government’s economic stimulus plan outlined today will play a critically important role in dampening the most significant downside risks confronting the Australian economy right now,” according to Yasser El-Ansary, Chief Executive of the Australian Investment Council.
“Delivering an immediate cash payment to social security recipients to help lift consumer spending straight away is the right policy approach to supporting business activity at the front-line of a number of the key sectors hit hardest by the impact of COVID-19,” added Mr El-Ansary.
“The expansion of the instant asset write-off and accelerated depreciation changes, along with cash payments to SMEs and wage subsidies for apprentices will also play an important role in incentivising businesses to get-on with things and invest in upgrades to plant and equipment, helping to drive economic activity in the short and medium-term.
“Australia’s tourism and education sectors have been significantly impacted by COVID-19, and the Government’s commitment to roll-out a $1BN regional assistance package is a positive for businesses struggling in those sectors.
“More should be done over the period ahead to ensure that businesses continue to invest in areas such as innovation and growth, which we know from past economic downturns is a vital ingredient in enabling the domestic economy to swing back into full momentum quickly once the immediate health crisis subsides,” Mr El-Ansary said.
Last week, the Australian Investment Council called on the Federal Government to abandon current plans to cut access to the world-class research and development investment program, to deliver a lift in the rate of the Newstart and other related allowances, and to work with industry to develop a strategy to position Australia as an attractive destination for offshore investment amidst the global uncertainty which exists right now.
“The best advice in front of us suggests that the impact of COVID-19 will continue for some time, and that means that the Government should be prepared to put in place a series of further economic responses that cover short, medium and long-term strategies to support the domestic economy as events unfold,” according to Mr El-Ansary.