Richard Hendriks
Partner, Tax, Sydney, PwC Australia
Paul Abbey
Adam Vassilieff
Pauline Ho
Trinh Hua
Australia Matters, which is why we believe these five blind spot issues should be top of mind for business leaders.
Business leaders should therefore be asking themselves crucial questions across these five topics. The decisions and steps taken by leaders will impact the country and all Australians. This is a snapshot of the opportunities we need to come together to help solve and turn the tide of negativity in 2020.
Australia’s economic growth prediction is just
2.3 per centWhere will growth come from in 2020? Australia’s economic growth remains persistently lower than at any point in the past two decades. It’s forecast to fall even further. With a perfect storm of falling household incomes, wage stagnation, and stalling productivity, economic stagnation presents business leaders with a stark scenario. Action is required to prepare for what the economy may have in store next year.
Australia's GDP could be
$40bnbetter off
Technologies have already altered the way many Australians work and more jobs will change forever in 2020. Sixty percent of Australian adults are worried that automation is putting jobs at risk but Australian workers are less likely to be upskilling than their global peers. The mismatch between the skills people have and those needed for the digital age is fast becoming one of the world’s most pressing problems; Australia has plenty of catching up to do.
There is up to
~$1.35bnin underpayments per year
It’s been impossible to miss recent headlines about underpayment of workers entitlements. The current industrial relations framework has been simplified but complexity is still a hallmark of the system. The magnitude of errors that can potentially take place can be overwhelming. Dangers and risks apply to businesses large and small.
The World Trade Uncertainty Index has recently spiked by
1,852%The index has remained largely stable over the past 20 years but a recent sense of instability has been exacerbated by trade tensions and doubts over how various global markets will perform in 2020. The Australian dollar is especially vulnerable to currency instabilities associated with the Chinese economy. In 2020 there are several material risks that could trigger a currency shock for the Aussie dollar.
To reach OECD top 10 levels, we need to spend an additional
$13.7bnon R&D
To pave the way for much-needed investment and future growth, Australia requires the right settings and investment culture. Australia’s investment decisions in 2020 should have regard to high-growth opportunities alongside our natural advantages. The settings for investment culture needs to change to nurture future growth.
