The impact of the global health crisis has been felt across all sectors of the economy, but the hardest hit sectors to date have been the tourism and entertainment, retail, real estate (tenants and landlords of both commercial and industrial premises), aviation and those in the tertiary education sector.
In July, the Treasurer Josh Frydenberg and the Minister for Finance Mathias Cormann released the Economic and Fiscal Update, which showed the deep economic impact of COVID-19 on the Australian economy.
Over $290 billion in economic support has been provided by the Federal Government and we expect this number to rise with the key fiscal programs of JobSeeker and JobKeeper now extended beyond their initial term. Both Federal and State Governments have also announced the fast tracking of major infrastructure projects in addition to the HomeBuilder grant to prop up the construction industry and boost the economy.
It is obvious the economy and society at large has been hit at a scale none of us or our clients have experienced before.
So, as Australians wait for the budget to be annouced this evening, it's clear that in the face of the pandemic the budget will play a major role in steadying the economy – yet will this be enough?
Already we are hearing from our clients that there is strong validation their sectors and industries are set to continue to make an appeal for further policy reform; as the expectation is that business may not bounce back.