Invest
Government urged to be bold in economic recovery
The Morrison government is being urged to use the COVID-19 pandemic to be bold and deliver long-term economic and social benefits to secure Australia’s recovery from its first recession in almost three decades.
Government urged to be bold in economic recovery
The Morrison government is being urged to use the COVID-19 pandemic to be bold and deliver long-term economic and social benefits to secure Australia’s recovery from its first recession in almost three decades.
CEDA chief executive Melinda Cilento pointed to the effectiveness of strategies during the pandemic such as childcare subsidies, support for aged care and housing policies, which she opined should be extended for the duration of the recovery.
“Australia remained resilient by taking bold steps on health and the economy – 2021 will be no different,” Ms Cilento said.
She also pointed to the importance of the vaccine rollout, with a win on the health front meaning the Australian economy would be in a healthier position than much of the world.
“In 2021, everything will flow from this, especially as governments wind back income support, such as JobSeeker and JobKeeper, that kept much of the economy afloat last year,” Ms Cilento said.
The government should not be afraid to provide continued support to the hardest-hit industries and individuals to support jobs and incomes, Ms Cliento judged, adding that ensuring the economy is not derailed is key.
Ms Cilento also urged the government to be bold and invest in new sectors, including moving Australia towards net zero emissions.
“Climate change should be front of mind, given its business, economic and social significance, as well as the global policy shifts driven by the new Biden administration in the United States,” Ms Cilento said.
Another theme is the need to address inequality, with lower-paid roles notably bearing the brunt of job losses in many nations.
“To address inequality in Australia, a permanent increase to the rate of JobSeeker is long overdue,” Ms Cilento said.
“It will do much to support the recovery, and as Reserve Bank of Australia governor Philip Lowe has said, it is a fairness issue.”
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