Stimulus package welcome but challenges still ahead

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The Federal Government’s economic stimulus package will provide welcome support for Australian businesses and households, but there are still significant challenges ahead as governments manage the public health response to the coronavirus outbreak.

Property Council of Australia Chief Executive Ken Morrison said measures targeted to sustain cash flow in small to medium sized businesses, boost business investment and support employment of apprentices and trainees were sensible and well- targeted. The additional assistance for households would also help support consumer confidence more generally.

“The Government’s stimulus package is substantial, well targeted and will have a significant impact, but there is no hiding from the fact that there are tough times ahead,” Mr Morrison said.

“These measures should support confidence for business and consumers and encourage small to medium sized businesses to keep employing and investing during this challenging time.

“Supporting consumer and business confidence is important for the property industry that employs 1.4 million Australians,” Mr Morrison said.

However Mr Morrison warned that despite this strong stimulus package, there would still be significant challenges ahead for the Australian economy as the public health response to the coronavirus outbreak continued to evolve.

“As governments escalate the public health response, these measures will have their own unavoidable impact on the economy.

“From an economic perspective, the current phase has largely been about our exposure to China. The next phase is likely to be about the impact of an economy that will have gone into partial lock-down.

“While many jobs can be performed from home, you can’t build a construction project from your lounge room.

“Many of these economic impacts are simply unavoidable given how this health challenge is likely to evolve and business needs to prepare for this,” Mr Morrison said.

Source: Property Council of Australia