Print and digital media are awash with the pre–Federal Government Budget talk. Talk of the challenges of delivering a budget in an environment of increasing interest rates, ongoing inflationary pressures argued to be a result of the consequences of COVID-19, increased demand and the war in Ukraine and talks by the International Monetary Federation of a global recession.
That said, the Australian Bureau of Statistic data of GDP reported growth in the last quarter of 0.9% and 3.6% for the year. But many are weary that this growth is not sustainable in the medium or longer term, with a recent National Bank of Australia survey of Chief Executive Officers anticipating a downturn in the next 12 months.
Are you preparing for a downturn?
Inflation pressures and skills shortages are commonly identified as two key areas which needs to be attacked in the upcoming Federal Government budget.
The Guardian reports that inflation is rising at a rate not seen for 21 years. The Australian Bureau of Statistics has identified that CPI has risen a total of 6.1% over the last twelve months because of factors such as freight costs, continued strong demand and ongoing supply constraints. These pressures resulting in soaring grocery bills, construction costs and fuel prices.
The ongoing skills shortage continues to burden business growth. The Australian Financial Review reporting an estimated 31% of businesses being unable to find suitable employees. The reasons outlined include the lack of immigration, burnout, shortages of necessary and required skills and competition attracting talent. They argue that the inability to find workers is not sector-specific, with the shortage affecting every industry.
Locally, these factors are applying direct pressure on the business community and the community in general. And in an environment with a large pipeline of development, the Federal Government Budget response to these challenges is seen as critical to ensure a thriving business community.
That said, do you think the Toowoomba economy is robust and strong enough to combat these growing pressures and impacts?
What would you like to see the Federal Government Budget address?
On 27 October 2022, the Director of the RSM Business Advisory Division, Will Laird, will take a detailed look into the first Albanese government budget, economic headwinds, and opportunities and how this is likely to impact small businesses in the Toowoomba region.
Grab your tickets from our website www.toowoombahamber.com.au to hear what Will and panelist Deputy Mayor Geoff McDonald and Chief Executive Officer Ali Davenport of the Toowoomba and Surat Basin Enterprise think of the Federal Government Budget impact on your business, the region and people of Toowoomba.
Any questions for Will and the panel? Email them to admin@toowoombachamber.com.au
