Following on from our blog a few months ago, now that the Federal Election is done and dusted and a Liberal Government has been returned to power, it is time to look into what this will mean for our clients and candidates from a jobs perspective.
The Liberal Government’s plan encompasses 5 main things in order to build the economy and secure the future of Australians:
- Create 1.25 million more jobs over the next 5 years;
- Maintain budget surpluses and pay down the current debt;
- Deliver tax relief for small businesses and families;
- Guarantee increased investments for schools, hospitals and roads; and
- Keep Australians safe and our borders secure.
Follow this link for a run-down of the policies that were announced during the 2019 election campaign. There is a large focus on small businesses, health, safety and jobs.
As recruiters, the focus on job growth is very relevant to us at Rusher Rogers. The Liberal Government plan to build a stronger economy based on individual enterprise and aspiration while looking after Australians requiring assistance. The plan is for them to create another 1.25 million jobs over the next 5 years, and 250,000 of these new jobs will be for young Australians. This will be done by supporting businesses and building a stronger economy.
They are going to focus on education and apprenticeships to build up the required skills for Australians. This will be done by investing $525 million into the VET (Vocational Education and Training) Sector, and will include 80,000 new apprenticeships including incentive payments to both employers and apprentices to encourage this growth.
They have a $100 billion infrastructure plan which will allow businesses to connect to export markets to better connect people to their jobs, homes and communities. These investments will go into rail, road and intermodal facilities and will allow regional communities to be more connected.
The Liberal Government promised to simplify the tax system between July this year and July 2024, which will include raising the 19 per cent tax bracket to $45,000 as well as reducing the tax percentage.
The first order of business in the first sitting of parliament was its promised tax relief bill. Now that this has passed a $158bn package of tax cuts. According to Josh Frydenberg middle income earners will spend their tax refund from this first round, worth $15Bil with some 810,000 already lodging their personal returns with the tax office, potentially boosting spending which may in turn boost the economy.
The employment figures released earlier this week see the jobless rate steady at 5.2%, no change from last month. So fundamentally it is business as usual. Depending on what you read, but according to a NAB survey, business confidence, which spiked in May, was short-lived after the election, as corporate Australia loses momentum with the retail sector continuing to suffer. The latest RBA rate cut passed with little impact. Jobs, however saw a rise in employment intentions following a jump in ANZ’s job ad series.
All of this does paint a rather rosy picture. Particularly if the government, free for now of its own internal machinations, can deliver on it’s promises and reduce unemployment to under 5%. It will be interesting to see if the tax changes do deliver a boost to the economy and if the world economy stays strong in light of ongoing trade wars. All that we can do is continue to do our best, work hard, enjoy the good times or roll with the punches.