The Australian Investment Council (AIC) has outlined a range of key policy suggestions in its 2022-23 pre-budget submission including keeping borders open and maintaining a flow of migration.
The AIC said that the flow of non-citizen skilled migrants, tourists and students should be considered “critical” to Australia’s economic recovery and urged for border controls to return to pre-pandemic settings as soon as possible.
“Australia’s economy relies on a dependable and steady flow of non-citizen skilled migrants, tourists and students to drive economic growth, consumer spending and job creation so it is critical that visas and skills lists focus on expediting immigration that will fill skills and jobs gaps where they are most needed,” said AIC CEO Yasser El-Ansary.
“Introducing visas for foreign students who graduate from Australian universities in disciplines where there are skills shortages and which allow them to stay and work in Australia, would make a meaningful contribution to the development of Australia’s post-pandemic knowledge-based economy.”
Another key recommendation from the AIC is improving the digital capability of businesses.
“All Australian businesses need to build a strong digital capability to increase their productivity and competitiveness in both domestic and international markets,” said Mr El-Ansary.
“We are recommending a simpler, direct additional tax credit is introduced to enable Australian companies to retool through investment in software and other digital capabilities.”
Additionally, the AIC called on the government to retain a stable macroeconomic environment and ensure housing price growth remains sustainable and in line with real wages growth.
It said this can be achieved by assisting first home owners bridge the funding gap on their deposits and by working with state governments to identify impediments to new housing creation as well as targeted programs that don’t place additional pressure on prices.
The range of policy suggestions put forward by the AIC also include measures to support innovation, maintain a steady flow of investment capital, remove tax efficiencies, work towards net zero and prepare for future pandemics and disruption.
“Given the impact of the COVID pandemic and the uncertain times that lay ahead, and as a net importer of capital, Australia’s economy relies on a dependable and steady flow of foreign capital to drive economic growth and job creation,” Mr El-Ansary said.
“At this critical juncture, it is vitally important for our economic future, and Australian jobs, that businesses can quickly and efficiently access capital from domestic as well as offshore investors.”
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
