Coronavirus: bosses urge workplace rethink as vital next step to stimulus

Scott Morrison is being urged to pursue tax and industrial relations reform as part of a long-term response to the economic impacts of the coronavirus.

Business Council of Australia chief executive Jennifer Westacott.

Business is urging Scott Morrison to pursue tax and industrial relations reform as part of a long-term structural response to the economic impacts of the coronavirus.

Business Council of Australia chief executive Jennifer Westacott said “heavy lifting” in the May budget was needed in response to the health crisis after $17.6bn of short-term stimulus measures were unveiled on Thursday.

“The budget in two months’ time will give us a chance to do the heavy lifting of making sure the ­recovery is permanent and the economy bounces back stronger than before, particularly given growth was below average before this ­series of crises,” Ms Westacott said on Thursday.

“(The) stimulus announcement is aimed at stabilising the economy and keeping people in jobs. The fact that three in every four dollars of the package is directed to business recognises that it is business that will keep people working.

“Businesses need to bring forward their investments, particularly fast-track investments that generate economic activity and jobs, especially in regional areas.”

Australian Chamber of Commerce and Industry chief executive James Pearson said the budget provided “another opportunity to take appropriate measures and consider broader structural reforms to lay the foundation for strong economic growth post the pandemic.”

Council of Small Business of Australia chief executive Peter Strong said the government should use the crisis to pursue ­reform, including in the industrial relations sphere.

“What this crisis will show is where we will need reform. And when we are through this, I think we should have a roundtable of key players to sit down and say: what did we learn from this and the bushfires about what we need to do about our economy,” Mr Strong said.

“One obvious thing is going to be workplace reform. But we don’t want to bring that up in the middle of a crisis.”

Included in the stimulus package was $6.7bn of cash payments to businesses with a turnover of up to $50m; $1.3bn to give a 50 per cent wage subsidy for apprentices until September; $700m to expand the instant asset write off from $30,000 to $150,000; and $3.2bn for a 15-month investment incentive by accelerating depreciation deductions.

BHP chief executive Mike Henry backed the “methodical” approach by the government in responding to the economic impacts of COVID-19. “Moves to stimulate the economy, support small business and provide an additional safety net for the vulnerable in our community is the right thing to do,” he said.

“We note the opposition’s offer of constructive bipartisanship. It is vital the parliament and the country work together and quickly to respond to what confronts us all.”

Minerals Council of Australia chief executive Tania Constable said the stimulus package was “good news for the country’s junior miners” while Master Builders Australia chief executive Denita Wawn said the package assured industry that the government was committed to doing “whatever it takes” to maintain confidence in the face of the pandemic.