To consider how the Budget’s narratives and initiatives apply to your businesses, brands, target audiences, and communications activities – IMPACT has compiled observations some key, relevant themes for our clients and network.
Back to work: Skills, training and jobs
Jobs featured heavily in the Treasurer’s budget speech, and a narrative of ‘back to work’ emerged as the Government seeks to signal distinct phases and milestones to transition out of crisis response, through supporting stimulus and into economic growth.
When it comes to training and skills, it appears significant spending is being invested in existing systems, rather than new ways to train and deliver workers with the skills and mindset for today and tomorrow’s jobs.
Key initiatives and announcements include:
- JobMaker hiring credit to encourage businesses to hire 450,000 young, unemployed Australians aged 16-35
- JobTrainer fund given an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50 per cent wage subsidy for businesses who employ them
- 50,000 new higher education short courses in agriculture, health, IT, science and teaching
- 12,000 new Commonwealth–supported places for higher education in 2021
- $240 million measures in job creation, apprenticeships and traineeships for women in STEM
Budget banks on business leading a market-driven recovery
With the largest budget spend directed at Australian business, the Morrison Government’s message was clear; boost business to boost confidence, investment and jobs.
Tax initiatives linked to spending on assets and people aim to create a trickle-down effect – not only economically, but also emotionally.
Aussie businesses are being asked to back themselves and their fellow Australians, because conservative measures won’t be enough to realise the budget’s forecast recovery.
Focus on simplicity and awareness to ensure Super future
Superannuation is experiencing a rocky period, with funds not immune to the impact of the pandemic on global and local markets. In the coming years, as the economy recovers, it will be critical to ensure that super is working hard for all Australians.
Super is a long-term game, so we tend to have a set and forget attitude towards it that costs us – now and in the future – with Australians paying $450 million a year in fees as a result of 6 million multiple accounts.
With every dollar now top of mind for all Australians, particularly self-funded retirees, the Government is initiating changes to super to minimise duplication, fees and poor performance, and save Australian workers $17.9 billion:
- New super accounts will no longer be automatically created every time a worker changes jobs; instead Super will follow an individual from job to job
- Superannuation funds will be required to meet an annual performance test and poor performing funds will be required to notify members of underperformance
- To help more Australians make informed choices about Super, the Government will establish an online comparison tool ‘YourSuper’.
Sovereign capability to create and protect: Manufacturing and Security
COVID-19 exposed the fragility of the global supply chain when borders are closed and trade slows. Many Australian businesses showed significant agility and innovation in pivoting their businesses to drive local manufacturing and plug broken supply chains.
The Government seeks to build on this renewed focus on sovereign manufacturing capability to ensure the sector an even greater role in the nation’s economic recovery through its $1.3 billion modern manufacturing plan targeting six key industries:
- Food and beverage manufacturing
- Resources technology and critical minerals processing
- Medical products
- Recycling and clean energy
- Defence industry
- Space industry
Investing in the sovereign security is also a key focus, with a total of $1.7 billion set to be invested in cyber–security and $450 million for law enforcement and intelligence to keep Australians safe from domestic and foreign threats online and offline.