Australia’s Treasurer Josh Frydenberg will give an important update on the country’s fiscal and economic outlook on 23 July. Poised to unveil Australia’s largest budget deficit since WWII, the Morrison government will enter the next election with weak finances.
With JobKeeper and the expanded JobSeeker programs due to end in September, there are plans that the Treasurer may restructure these.
On Tuesday, Australia’s Prime Minister Scott Morrison said the $1,500 per fortnight JobKeeper payment will be reduced to $1,200 a fortnight for full-time workers from the end of September, and $750 per fortnight for people working less than 20 hours a week. That payment is due to be revised downwards again later, possibly from March 2021 to $1,000 per fortnight and $650 for part-time workers.
“Already just over $30bn has been provided in support through the Jobkeeper program to almost a million businesses; 960,000, thereabouts, supporting some 3.5 million employees, Mr Morrison said.
RMIT Family Business Entrepreneurship Professor Kosmas Smyrnios spoke ahead of the economic update on the problems faced by micro-enterprises.
“COVID-19 has delivered many risks to business,” he said.
“A substantial number of small to medium businesses have failed or are on life support.
“But there are opportunities waiting to be exploited at a community level.
“Providing small to medium-sized enterprises with access to Federal Government-guaranteed loans worth up to $1 million under a plan to drive investment should help deliver support to not only employers, but also individuals and families.
“However, now is the time for the Federal Government to add to its armament to drive economic growth and stimulate employment.”
Professor Smyrnios, who has consulted for multinational corporations including AXA, the Commonwealth Bank and PWC, also looked at the creation of new enterprises as a way to stimulate growth.
“At a local level, provision of micro loans and associated support in the form of training programs for the creation of new ventures is one of the best ways to stimulate innovation and manage unemployment,” he said.
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“Although not everyone is a nascent entrepreneur, incentive schemes that encourage people to be independent financially can lead to many community and personal benefits, helping to reduce the likelihood of medium-to-long term dependency on government handouts.
“Perhaps it is now time for the establishment of a Federal Government New Venture Creation scheme that fosters an Australian spirit of the go-getter.”