Business NSW is calling for significant fiscal support in the federal budget to drive a recovery from recession, desperately needed in the Orana region and across Australia.
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National economic activity collapsed by a record seven per cent in the June quarter as a result of COVID-19 lockdowns, and on Wednesday Australia officially entered its first recession in almost three decades.
Treasurer Josh Frydenberg will hand down the budget in October after it was delayed from its traditional May release because of the pandemic.
Business NSW is highlighting 10 "business recovery drivers", among them greater certainty about restrictions, JobKeeper, and support of regions, all contained in Back on Track, its COVID recovery plan.
"The June quarter national accounts confirmed Australia entered deep recession in the June quarter, underscoring the case for more government support until there is a sufficient recovery in private demand to pick up the slack," Business NSW western NSW regional manager Vicki Seccombe said.
The extension of JobKeeper has been crucial but nonetheless represents a significant reduction in the level of fiscal support...
- Business NSW's Vicki Seccombe
"The extension of JobKeeper has been crucial but nonetheless represents a significant reduction in the level of fiscal support that will be provided to the economy."
The peak body says the October budget should focus on making the right environment for businesses to hire staff and invest.
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More than 134,000 fewer people were employed in NSW compared to in March.
Business NSW is pushing for certainty about when remaining restrictions on tourism, construction, transport, hospitality and education will be lifted.
It also wants more fiscal support through the extension and refinement of JobKeeper - due to change from September - with two in five businesses reporting they would be closed without it.
NSW regions also need support in the areas of telecommunications and filling labour needs, the peak body says.
With concerns in agriculture about being unable to fill positions for this year's fast-approaching harvest, Business NSW is recommending the government create a pathway for skilled workers from overseas to migrate to Australia while complying with COVID-19 quarantine restrictions.
Ms Seccombe said the Back on Track report was informed by the result of a survey of more than 1000 businesses, among them businesses from the Orana region.
"Our recommendations for the October Budget also address long-standing challenges for Australia including investment allowances and capacity building, productivity, tax, infrastructure, skills and youth engagement," Ms Seccombe said.