Victoria must be bold in COVID comeback
Now is the time for Victoria to leverage its collective strengths and collaborate at every level. Let this state be defined by our response to COVID-19, writes Paul Guerra.
Opinion
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Victoria, it’s time to be bold. When we restart let’s rebound stronger and better than before. We need to bridge the gap between where we left off and where we want to be. We need to make Victoria the best place in Australia to operate a business.
We must protect the future of our businesses, big and small, to safeguard our liveability and prosperity as we turn our minds to living and working under ‘COVID-normal’. That is the key to ensuring that the Victoria that we know and love not only endures but thrives. We can do that together.
Victoria’s fundamentals are strong and provide an ideal platform to grow: a diverse economy and industry base, stable governance, a Triple A credit rating, resilient regions, highly skilled and productive workforce, world class education and training, well developed infrastructure, clean environmental credentials, leading research organisations, hallmark sporting, business and cultural events, world renowned tourism offerings, global trade and close links to key markets.
Future growth will depend on our ability to leverage these fundamentals. It can be done by supporting the private sector to keep direct and indirect costs low, improving their competitive position and capacity to grow jobs as they tap into new markets at home and abroad.
COVID has certainly changed the way we live and work. In some respect it has lifted the veil on what we may have taken for granted. It has also forced us to rethink both opportunity and innovation. We are all looking forward to restarting in a strategic, health-focused and well managed way. No Victorian wants to see a third wave.
The first need is immediate: we must soften the blow that the pandemic and restrictions have dealt business by lowering taxes – permanently.
Grants and JobKeeper have thrown a necessary lifeline to most businesses. Government has also deferred imposts such as payroll tax, land tax and stamp duty. But what happens down the track when businesses must pay up? They will need some careful support.
We must grab the opportunity to undertake reforms that keep businesses competitive as our economy, industry and way of working continues to change. Now is the time to bold. The best pathway to achieve that is a bigger economy, not a smaller one.
A blueprint for fundamental tax reform must outline options for shifting the state’s revenue base toward more efficient, productivity enhancing taxes, while lowering the overall burden of business taxes.
The longer-term abolition of payroll tax must be a key objective. A tax that penalises businesses for employing people has no place in our restart.
We also need to reclaim our global reputation for quality tourism experiences, world class events, food, fashion, and quality, trusted products. It’s why our state is the greatest in Australia.
And we feel that way about all our world-renowned industries. Right now, they are battered and bruised but their entrepreneurial spirit and resolve has seen them bounce back from previous crisis and they will rebound from this one too.
Think of how Victorian produce is trusted and coveted the world-over as a pure, safe and healthy product. COVID has taught us that we are fortunate to have one of the most enviable food supplies in the world. Let’s harness that by embracing new technologies and systems.
But we can be bolder again. Let’s aim to be a global leader in five sectors within 10 years through a strategic and unified approach involving unions, industry, educational institutions and government. Digital technology, advanced manufacturing, renewable energy, health services and agribusiness would be a good place to start.
Finally, we need the next big build to take us into 2030 and beyond. Victoria’s infrastructure pipeline has provided a significant boost to the economy over recent years and has been the cornerstone of our apprenticeship and traineeship workforce.
However, with several large projects either well underway or nearing completion, momentum must remain and a new tranche of major projects needs to be identified and delivered, to keep Victoria moving, create jobs and build competitiveness.
Planning for and building infrastructure for future generations will make Victoria a better place to live and work, while stimulating jobs for local small and large businesses across the state.
We’ve got this Victoria. It’s time to leverage our collective strengths and collaborate at every level. Let us be defined by our response to COVID-19. Let’s come back swinging!
Paul Guerra is CEO of the Victorian Chamber of Commerce and Industry (VECCI)
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