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Can Australia’s leave boost the economy?
With the summer holidays fast approaching, Aussies are preferring to save their leave, according to the latest figures.
Can Australia’s leave boost the economy?
With the summer holidays fast approaching, Aussies are preferring to save their leave, according to the latest figures.
Research released by Roy Morgan has shown that Australians have stockpiled over 146 million days of annual leave.
This means the average working Aussie has just over 16 days of paid working leave.
According to Austrade, domestic travellers pumped $77.5 billion into the Australian economy with 400 million nights spent away from home.
Given the current strength of the domestic tourism industry, Roy Morgan CEO Michele Levine believes that if Australians took their leave and went on domestic holidays, it would help support a slowing economy.
“With the Australian economy showing signs of slowing, the potential boost that would come from people taking their accrued leave would be considerable. This would particularly be the case if Australians were encouraged to holiday in Australia,” Ms Levine explained.
However, while an increase in domestic tourism would boost the economy, the latest ABS statistics show Australians are looking to saving instead of spending.
The September quarter showed that the first three months of the financial year saw household spending grow by just 0.1 per cent, or the smallest growth since the global financial crisis.
Federal Treasurer Josh Frydenberg put a positive spin on the low consumption figures, stating: “Household disposable income grew by 2.5 per cent, the fastest quarterly rise in a decade, with the ABS saying it was driven by a decline in income tax payable and interest paid on dwellings as well as continued rises in the compensation of employees.”
“Whether spent or saved, the tax cuts are putting households in a stronger economic position, making them more financially secure with more money in their pockets,” the Treasurer concluded.
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