|CreditWatch Chief Economist, Harley Dale, shares his thoughts on the 2020 Budget announcement and the impact this will have on Australian businesses:|
“This Federal Budget is all about generating an economic recovery through creating jobs. Against a backdrop of the largest deficit and debt levels since the Great Depression, the government is to be commended for announcing a number of measures that will assist in generating jobs and economic growth.
“The job maker hiring policy is, for example, a smart way to generate employment and the bringing forward of tax cuts makes sense in the current environment.
“The government has considered a suite of policies that cover a broad range of the Australian economy – not being one dimensional, but rather all-encompassing – ‘pumping tyres up for everyone rather than a select few’.
“In terms of the SME businesses, who are all suffering at the moment, the announcement of the Instant Asset Write Off boost is welcome news. This announcement will deliver significant financial relief to struggling SMEs. As an example, if you are a small business that has been capable of surviving COVID, and you need to grow your business, the instant write-off allows you to immediately invest in capital machinery.”