On 4 August, the Treasurer of Australia, Josh Frydenberg, joined the Victorian Chamber of Commerce and Industry and the Australian Chamber of Commerce and Industry to discuss the state of the nation and the enormous challenges Victorian businesses face under stage four restrictions. 

Speaking with VCCI Chief Executive Paul Guerra, ACCI Chief Executive James Pearson and the Director of the Business Leaders Council Paul Nicolaou, Frydenberg thanked the business community for their resilience during these "dark and terrible times”.  

“The first thing I can say is thank you. Thank you for what you do in producing vital goods and services for the economy but thank you for employing so many Victorians and Australians.” 

Frydenberg announced a week prior in the Economic and Fiscal Update that the nation is expected to lose 3.75 per cent of its GDP by the end of the calendar year and an increase of net debt to $677.1 billion. Despite the economic shock and the tragedy that has befallen many businesses in Victoria, the nation is in a much better position than many others around the world.  

"It’s an economic shock that is ongoing, and that is happening right around the world in a way that we haven’t seen for the last century. But at the same time, we have remarkable resilience and we as a country and as a people are better placed than any country around the world.” 

Reflecting on the Australian recessions that impacted Australia 30 and 40 years ago, the Treasurer explained that though the recession we are in now is devastating, the recovery will be swift. 

“This recession is different to previous recessions. The previous recessions of the 80’s and the 90’s were less severe than what we’re seeing now and over a longer period of time. In this case we’ve got not just a demand-side shock which you normally get in recessions, but we also have a supply-side shock as the restrictions have prevent those who would go to work and provide those services. But the good news is that, as we’ve seen outside of Victoria, those are the first jobs that are coming back.” 

The Treasurer reiterated that confidence is key for economic recovery and that businesses around Australia that must be motivated to endure to restore the economy post-COVID-19 restrictions.  

"The private sector is responsible for nine out of 10 jobs, and so business will be critical to the economic recovery and confidence is key, and your confidence in the recovery is therefore key." 

Though the economic recovery will be led by the business community, the Treasurer understands that the onus also lies on the state and federal governments to provide the stability. 

“The reality is that the economic shock is going to hit balance sheets whether they are Federal or State, and governments have to be responsible because they have to focus on critical service delivery... our ability to come out of this and grow the economy on the other side is certainly going to be enhanced by the fact we haven't undermined the structural integrity of the budget.” 

Despite the economic turmoil, Frydenberg urges all business to look to the light at the end of the tunnel and assures that the stage four restrictions will be the toughest road the business community will travel during this pandemic.  

“Look through the next six weeks, look to the period of Christmas and beyond, see your business surviving and ultimately thriving and know that the Federal Government, working with the State Government has your back.” 

“That’s the message I wanted to convey tonight... is that the Federal Government is very much focused on ensuring that while you’re struggling today that you survive and prosper tomorrow.” 

Help and support  

For more information about the resources available to your business, please visit the COVID-19 Resources page of the VCCI website.  

To help all businesses in Victoria during these difficult times, the VCCI is offering free memberships to all new members. Click here to enquire about obtaining a free membership or call 03 8662 5333.