Category: Australian economy – Post Covid Era

After Covid-19 imposed border restrictions, newly appointed Immigration Minister Alex Hawke announced today that the government intends to allow temporary visa holders to return to the country as soon as possible, including international students and visitors.

Immigration Minister, Mr. Hawke said the government is planning to open the international border soon. COVID taught us one thing, and that is, we must cherish tourists to our economy and temporary visa holders. Mr. Hawke said we want them back as soon as possible. He believes that migration will be crucial to Australia’s recovery from the coronavirus pandemic.

That’s why the government is expanding our vaccination program and planning to open our international borders so that we can have visitors in our country who spend so much money and also, international students which is largest export sectors of our country, they both add value to the Australian economy. Mr. Alex said we want them back.

Mr. Alex Hawke’s statement comes as the latest data from the Ministry of Home Affairs shows that offshore international students’ visa applications have dropped by 65% in the second half of 2020 relative to the previous year 2019. He also said the biggest drop has been seen in visa applications from India- which is the largest source of students to Australia.

Mr. Hawke said he believes that international students visa applications will surely rise once they reopen the country’s border because we have the best education system internationally.

Australians could travel freely around the country without any border restrictions since Covid-19. The entire country is enjoying free travel across interstate borders without having to undergo quarantine. It is the first time Western Australia has no quarantine requirements for any state since border restrictions were introduced last April.

Under WA’s control border system all states are now classified as “ very low risk”. Australians are really happy now they can travel anywhere and can meet their friends and family without any restrictions.

It is good news for international students who are going to study in Australia as there are no quarantine requirements. It will be helpful for students to save money on quarantine expenses. Now students can easily travel to Australia for studies and fulfil their dreams.

The Australian government is also introducing work opportunities for students so they can manage their daily expenses. The Australian government is doing everything for international students so they can easily get admission to Australian universities.

Opening the interstate border can rebuild the Australian economy and secure Australia’s future. Due to Covid-19 Australian economy has reached its first recession in almost 30 years but now the government is introducing an economic plan that would generate opportunities and restore the economy.

Also, the Covid-19 vaccine has come to Australia, soon everyone will get vaccinated and we will get rid of coronavirus so there is no possibility that the border will close anytime now.

Prime Minister, Scott Morrison, has announced the international travel services resume by October 2021 after consideration of the vaccinated adult population. The opening of the international border would rely on various factors.

The Australian government would be able to consider international flights after the adult population of Australia has been vaccinated against COVID-19. “That’s our hope and expectation,” Mr Morrison said.

“We would need to keep an eye on COVID-19 vaccines and their results,” Mr Morrison said.

Mr Morrison said that all these decisions would rely upon travellers medical conditions on arrival. Also added that their government is planning on whether quarantine upon arriving in Australia would be required or not at all for international travellers.

Discussions are going on with National Cabinet over how the recommencement would work in terms of quarantine arrangements.

“It is very encouraging that we are now getting a lot more data from the rest of the world.” 

“Our goal is to ensure consistent responses to the lower risks as the vaccines prevented people from going to hospitals,” Mr Gaetjens told a Senate inquiry.

However, the aviation sector of Australia is flexible and would be prepared for take-off no matter the date.

Qantas CEO Alan Joyce has welcomed a $1.2 billion tourism package from the Australian government. Travellers will have access to 800,000 half-price airfares to 13 tourism-reliant regions.

These times are demanding individual businesses today to be resilient in terms of their operation. With the increasing demand of consumers and the loss of staff and resources the situation could get catastrophic for the businesses.

Businesses also have the opportunity to restructure their entire business. It could be either outside or inside a formal insolvency process, but outside insolvency is more preferable.

Businesses also need to cut costs of their products in order to make way for profit and increase their sale all while competing with other businesses.

Assuming that the covid-19 crisis is over is the biggest misconception anyone could hold, including businesses. Businesses need to remember the lessons learnt during the pandemic and apply them in this post-pandemic period. They must also manage to maintain the staff energy level and staff morale during these times for smooth operation.

With the work from home situation, it is also required for the businesses to invest in the best home-based technologies and connectivity.

In terms of supply chains, it is also recommended to reevaluate the supply chains and restructure them to be more flexible and agile and to prefer near shoring strategies. In order to predict the new consumer demands and behavior, businesses also need to adopt intelligent sensing capabilities.

The pandemic has literally affected every sector, businesses and beyond. But all that is under ones control in how one manages to adapt and implement best practices in order to survive through these unprecedented times.

The Path Ahead for Australian Businesses

Australian businesses themselves need to work in an agile manner and actively contact customers as much as possible to make them aware and understand how you are handling the business in these circumstances.

While doing so, businesses also need to keep in mind and oblige the Australian Consumer Law which asks the businesses to not mislead the customers, to not behave unconsciously while dealing with their customers and to not rely on unfair factors in standard form contract with customers.  

Digitalization is the new path for many Australian businesses. While some industries are successfully working in this direction, there are some who are still trying hard and working towards it. Many businesses are investing in new technologies to adapt at these times. With the constantly changing consumer demands and expectations the businesses need to adapt with innovative and creative ways to manage everything.

Corrective measures to be undertaken over time to get businesses back

At these unprecedented times, it’s very important to take corrective measures to get the local, small and huge businesses back to working normal and earn profits.

The Australian government has extended safe harbor protections until 31 December, 2020 for the directors. This will ensure that the businesses can have safety and protection from insolvent trading liabilities. These liabilities will be applicable for the debts incurred during the course of business since March 2020.

The Australian government has undertaken these measures as they are aware of the overall repercussions on the businesses like huge loss in staff, disrupted avenues in the market and supply chains of goods and services, diminished capital and balanced sheets and even short term working capital and deficiencies.

These measures have substantially helped make the situation a little better for the businesses and for their overall operation.

Australian Economy hit by Covid-19 crisis

Covid-19 has caused a great economic dive and caused recession all over the world. Australia also experienced a major dive in the economy in the pandemic period since the great depression. According to the data released on the country, Australia is experiencing recession for the first time in 28 years. The government reported that the economy shrunk up to 7% in June, which is one of the biggest contraction recorded since the year in 1959.

The unemployment level is at its maximum in 2020, almost similar to the depression era period which is one of the major concerns for the country. The country experienced a drop of 0.3% in the first quarter of the year, after logging two straight quarters of contraction.

Businesses gone for a downward spiral

The pandemic has caused a great havoc in the lives of everyone especially students, IT corporations, businesses, small businesses. 

According to a report the largest dive in the Australian economy was a total of 12.1% in the household spending which accounted for a 7% fall in business and industry. With the continuing struggle of having the business premises shut, shifting the workplace from offices to homes, relocating the staff to their respective homes, the harsh reality of mass layoffs and experimenting new and creative ways of working from home, businesses are facing continuous struggles.

Businesses are facing struggles mainly because of the considerable reduction in the cash flow and also the transport of raw materials and goods and services. This is one of the major reason of lay off and reducing overall staff working hours. As per overall surveys conducted, since the onset of pandemic, 30% of the businesses have reduced the staff numbers, compared to the 17% in the previous years. More than 50% businesses have reported to have been affected in ‘a great deal’ by the Covid-19 pandemic.

The business sectors that largely got affected to ‘a great deal’ were health care and social assistance services, accommodations and food services. Currently even the manufacturing, construction, scientific, professional and technical services are facing great struggles as well.

Due to the second wave of Covid-19, few businesses are seen to be going back to the lockdown while few are still reopening.