11 May 2021

The Institute of Public Accountants (IPA) acknowledges that tonight’s Federal Budget is an essential part of Australia’s recovery process but warns of side-effects that will hamper efforts in the longer term.

“There is no question that the Government is focussed on a critical recovery path and opening up the Treasury coffers to facilitate recovery will create many growth opportunities including employment,” said IPA chief executive officer, Andrew Conway.

“The long-term game, however, is still staring us in the face. We are calling on the Government to fill in the gaps in the timeline for longer-term structural economic reform. Otherwise, the growth initiatives stemming from the Budget announcements tonight may be short lived.

“Structural deficiencies that have not been addressed pre-COVID are still there to haunt us, including workplace relations issues, the need for holistic tax reform, and regulatory burden that continue to weigh down our economy.

“Ultimately, Australia’s deficit will have to be addressed and while it is too early in our recovery process to talk of fiscal repair, there are other measures that can be taken to limit government fiscal outlays.

“This could be described as the ‘Game of Thrones’ budget – Winter is coming – the Government is backing itself to ensure we survive the Winter, but we also need to ensure that we transform the economy and be ready to thrive,” said Mr Conway.