The mid-year economic and fiscal outlook shows that the economy is on the verge of coming back to life, now we will have to lock that path in, Business Council CEO Jennifer Westacott said.
“Our world-class handling of the pandemic and the quiet resilience of Australians means we are positioned for a strong recovery.
“The government has softened the blow of the pandemic and helped spur investment with temporary measures, now we need to permanently unblock the private sector’s balance sheets and let companies do the heavy lifting.
“From now on, we will have to secure our economic future by sustaining this temporary success.
“MYEFO highlights the financial pressures on the budget in the years to come, so it is essential that it is not just a hit and miss.
“To continue funding the services Australians want, create new jobs and pay off our record debt, we will need above-average economic growth and deeper and more sustained trade investments.
“Our challenge now is to ensure that the forecasts for encouraging investments and jobs become a reality.
“Investment fuels productivity and higher wages, so it’s crucial to reverse near-record levels of business investment.
“Pouring out a strong recovery means sticking to the reopening plan, managing the supply constraints that are holding back the recovery and demolishing the Australian fortress.
“We must continue to reduce the economic frictions that make it difficult to do new things.
“We will also need to make permanent economic changes to make ourselves more competitive and stimulate business investment.
“It means freeing up the private sector’s balance sheets by getting rid of old and outdated regulations, making our tax parameters more competitive and qualifying Australians.
“We are in a good position, but we are not out of the woods. We have a competitive edge, so let’s build on that and prepare the country for the future.
“Without making the decisions that make Australia a more competitive place to invest, we risk letting our momentum slow and seeing the sacrifices made by Australians be lost.”