Scott Morrison pledges 400,000 small businesses will emerge if re-elected – despite warning financial woes with higher food and mortgage costs will continue
- Scott Morrison promised that in 5 years there will be 400,000 new small businesses
- The pledge is based on a government analysis of the prime minister’s policies
- It comes despite Mr Morrison’s warning that the economy is facing more pressure
- Australia’s inflation rate hit 5.1 percent, prompting interest rates to rise
Scott Morrison will pledge that 400,000 new small businesses will emerge in the next five years if re-elected.
The Prime Minister said small and family businesses are at the heart of his plan to boost the economy after 100,000 started up in the last 12 months following the Covid-19 lockdown.
He will make the commitment on Thursday after warning that the economy faces a bumpy ride of rising prices and rising mortgage payments following Tuesday’s rate hike.
The Prime Minister said small and family businesses are at the heart of his plan to boost the economy. Pictured: Trading in Sydney
Scott Morrison (to the right of Boothby Liberal candidate Dr Rachel Swift) has pledged that if re-elected, 400,000 new small businesses will emerge in the next five years
Mr Morrison said on Wednesday problems with global supply chains, which are pushing up the prices of energy, food and goods, are “very real and structural and ongoing”.
Australia’s inflation rate hit a 21-year high of 5.1 percent, prompting the Reserve Bank to hike interest rates to 0.35 percent, pushing up mortgage payments by an average of $80 a month, with further increases expected will.
Six points behind Labor in the polls, Mr Morrison urged voters to stay with him and slammed Anthony Albanese, who knew neither the unemployment rate nor the cash ratio on the first day of the campaign.
“Now is not the time to risk Labour, which for over three years still has no economic plan and a Labor leader who doesn’t even know what’s going on in the economy,” he said.
The pledge for 400,000 new businesses is based on a government analysis of the Prime Minister’s policies, including tax breaks and new trade deals with the UK and India.
“Our plan for a strong economy and a stronger future for all Australians is built on strong small businesses,” he said in a statement.
Mr Morrison was six points behind Labor in the polls and urged voters to stick with him. Pictured: Trading in Sydney
“That means keeping taxes at record lows, cutting bureaucracy, supporting the training of artisans and apprentices, signing new trade deals to create new export markets and ensuring businesses can handle the overheads of electricity prices.
“We have the track record of creating the conditions that encourage business creation, and our ambitious promise will result in 400,000 more joining our economy.”
New government data shows that the government’s expanded immediate depreciation of assets helped businesses buy $21.8 billion worth of goods last year, boosting the economy.
Non-mining private business investment grew 10.8 percent in 2021 and will increase another 7 percent in 2022.
Meanwhile, Anthony Albanese said only Labor had a plan to permanently ease the pressure on the cost of living by making childcare cheaper, investing in cheaper renewable energy, making some TAFE courses free and reforming IR laws to boost wages to increase.
When asked, he successfully named the new key interest rate of 0.35 percent and thus avoided a repetition of his slip from the first day.
Speaking in Sydney on Thursday, Mr Albanese will say: “The RBA Governor has made it clear that we should brace for further and likely more significant rate hikes in the coming year.
“This means Australia needs investments that lower the cost of living for families, get more Australians into work and higher-paying jobs, and grow the economy without increasing inflation.”
Non-mining private business investment grew 10.8 percent in 2021 and will increase another 7 percent in 2022. Pictured: A cafe worker in Sydney
