Australia’s economy could catch “long COVID”: CPA Australia

• Australia’s economy could catch “long COVID” unless the government provides support for businesses in the 2022-23 Federal Budget, according to CPA Australia
• Ahead of the Federal Budget, CPA Australia has made a submission to the Australian Government
• The key message in the submission is the need for short-term business support and longer term economic transformation
• CPA Australia believes that targeted support holds the key to helping businesses manage future disruptions

According to CPA Australia , the country’s economy could catch “long COVID” unless the government provides support for businesses in the 2022-23 Federal Budget.

The professional accounting organisation believes that targeted support holds the key to helping businesses manage future disruptions.

Ahead of the March Federal Budget, CPA Australia has made a submission to the Australian Government. The key message in the submission is the need for short-term business support and longer term economic transformation.

“It’s increasingly likely that many businesses will experience ongoing disruptions for the whole of 2022, and potentially beyond,” said CPA Australia Senior Manager Business Policy, Gavan Ord said.

“Rolling outbreaks, leading to worker shortages, supply chain issues and reduced consumer spending, may mean that trading conditions wax and wane all year.

“Accountants are staunch advocates of prudent financial management. Ultimately, the government must balance the cost of providing business support against the benefits and risks of doing nothing. On balance, we think the benefits outweigh the cost.

“The economy faces its own version of “long COVID” if support isn’t available to help businesses manage future outbreaks. The overall success of measures like JobKeeper and Cash Flow Boost in keeping businesses afloat will be undone if we make good businesses go it alone now,” Mr Ord concluded.

CPA said its top budget recommendations is support for digital transformation, increased the skilled labour pool, back off on new regulatory requirements and access to business advice.