It is the first budget after the November election and I expect election commitments will have funding flow accordingly, but I’m hopeful we will see some further growth funding as well as appropriate innovation and reform as Victoria tackles the road beyond COVID. I wrote a short piece for the Herald Sun, and you can read it here. We also made some comments to the AFR and you can read that here.

I read with interest an article in the AFR earlier this week, in which founder of hedge fund giant Bridgewater Associates, Ray Dalio, listed the megatrends to keep an eye on that will tell us where markets and economies are heading. In short, experts agree that the short-term outlook is almost impossible to read, but there are ways to look beyond this that will provide investors, regulators and policymakers with a way of thinking about the uncertainties markets are juggling and the next big questions facing markets and economies.

You can read the full article here, but the overall message is that markets are currently dealing with incredible levels of uncertainty right now, the current holding pattern cannot and will not last, and none of us can live on the assumption that things will continue working in the orderly ways we have gotten used to.

My advice as business owners and leaders is to plan for what you can control: how do you keep control of your costs and how can you drive revenue in for the short, medium, and long term? And this is also our advice to the State – we support the moves towards an operating surplus, but this should come from strong economic growth and responsible budgeting, not at the expense of business through increased taxes.

Included in the Federal Government’s pre-budget commitments are targeted tax incentives that will provide support to small and medium businesses through a $314 million energy efficiency scheme. Under the scheme, businesses with a turnover of up to $50 million will be able to claim an additional 20 per cent tax deduction on investments of up to $100,000 in electrification and energy efficiency.

SMEs are feeling the pressures from energy bill shocks harder than most, so any relief to reduce their costs is a welcome contribution. This is also an important step in the country’s transition to net zero while helping grow businesses and ensure their future competitiveness. The maximum bonus tax deduction is $20,000 per business, and eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024.

I spoke to The Age over the weekend about the rise of insolvencies in business, with the number of failing businesses almost doubling in a year due to tough economic conditions and the withdrawal of government pandemic support. We know that rising inflation is making its mark on businesses and, with the collapse of companies as large as ones like Porter Davis, it’s not just small and medium businesses falling. I think the article title is unfortunate, but it’s an interesting read and you can find it here.

What we are noticing is a significant increase in nerves over the current business environment. Confidence is low, and we are starting to see layoffs from larger companies. People are certainly being more careful with their spending, and it’s going to be a difficult few months ahead.

I’m looking forward to the opportunity to catch up with many of you at some of our upcoming events, including our premier networking series, Business After Dark, our State Budget Lunch with Victorian Treasurer, Tim Pallas MP, and the Victorian Chamber and Chief of Staff Association Networking night. Not just for Chiefs of Staff, all who work across similar areas are welcome to join, including strategic assistants, chief operating officers, heads of operations, directors of affairs and relations, etc.

I would like to congratulate Vanessa Hudson, who will take over as Qantas Chief Executive in November, and Andrew Dillon, who has been announced as the next Chief Executive of the AFL. Both Alan and Gil respectively will stay on to assist with the transition periods, and there will certainly be plenty of time in the future to thank them both and reflect on the significant contributions they achieved during their time at the helms of two of Australia’s most iconic brands and organisations.

Finally, the Victorian Government is inviting the business community to have your say on establishing a medically supervised injecting trial in the City of Melbourne. You can access the survey here: https://engage.vic.gov.au/msishaveyoursay. I met with Ken Lay AO this week to discuss the process, and your input will help frame a direction. I did make the point with Ken that education of exactly what the trial will entail is critical.

Finally, I note our Governor is now in London with the Prime Minister for the Kings Coronation this weekend. I’m sure a number of you will be tuning in!

Have a wonderful week everyone.