I’m here with the COVID-19 continuity update for Australian businesses on 20th November.
Earlier in the year when Australia’s economy began to suffer the effects of the pandemic, I wrote about the 3 stages we would need to navigate. As a reminder, the stages I spoke about were:
- Weather the storm
- Adjust to the new norm
- Prepare for the uplift
The third stage – prepare for the uplift – is well and truly here.
The two biggest Australian states have started announcing stimulus spending as part of their state budgets, cementing the shift to this new stage.
NSW budget for 2020-21 was announced on 17 November, with these highlights:
- $107B in infrastructure for projects such as:
- the Sydney Metro West and the Sydney Metro – Western Sydney Airport,
- New public schools and major upgrades to school facilities and amenities
- Additional spending across the State for maintenance and shovel-ready projects
- $30B on COVID health and economic package
- A reform to remove stamp duty and replace it with a form of land tax
- Significant payroll tax incentives (see my previous post here on 9 November)
- $10B towards regional hospitals and public facilities and regional roads
The Victorian 2020-21 budget is due to be handed down on 24 November. Some advance announcements on spending have been made, including:
- $5B on social housing
- $800M on household energy efficiency, replacing inefficient heaters with reverse cycle air conditioners
- $2.2B on new infrastructure, suburban rail loop
What does this mean for Australian economic recovery?
The massive spending plans by state governments have been designed to accelerate economic recovery and set a trajectory for both immediate and long-term growth.
In each announcement, both NSW and VIC governments have pointed out the jobs they are looking to generate from the spending initiatives. Case in point: NSW is looking to create or support 25,000 new jobs over 2 years with their $250M Jobs Plus program. The federal government is also incentivising businesses to grow and employ more people.
For Tenfold clients, if growth is in your coaching plan then there are more incentives to do so now more than at any other time.
BUT I know the crucial questions for Australian small businesses, including Tenfold’s coaching clients are: What is the benefit to my business? What do I need to do to tap into this spending stimulus?
Many of these spending measures take time to flow through the economy. In the GFC of 2008, Tenfold had many clients who worked on construction jobs connected to the federally funded School Hall Program or Building the Education Revolution (BER) grants. Some of these projects took up to 4 years to complete. One Tenfold client (a plumbing firm) didn’t start on a BER project until 12 months after they were announced, yet went on to complete 11 projects which saw an active pipeline of work for 2 years and 9 months. This contributed to a significant boom for his business, introduced him to many builders he otherwise wouldn’t have worked for and enabled him to sustain that size of business and profits for years to come.
The critical success factor to benefitting from the stimulus is to be in the right position at the right time, and be ready to go. This is where working with your coach on your foolproof prospecting process comes in. The work you’ve already done and the plans you have will put you ahead of the competition so you can be in pole position to capitalise on the uplift.
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching