Over the next 6-12 months, there will be eight major impacts on the Australian economy, all of which will affect accounting companies and their clients in Australia.
These are:
- The Covid-19 vaccine rollouts, which include the Australian state and federal governments response to the vaccination percentages and the opening of state and federal borders
- Added to the above vaccine rollouts, many countries of the world are already dealing with re-opening in the new normal. Many first world nations have vaccinated sufficient numbers of those people within their local borders to re-open domestically. Some smaller land mass nations, such as those within the EU, have re-opened borders within their geographic and economic areas.
- The US-China-Australia (and French) ongoing political situation. International politics continues to have an underlying longer term influence on the entire framework of production and supply.
- Working from home trends, and the extent to which staff will return to office. Office rental has languished at sub 10% in Melbourne and Sydney due to lockdowns.
- Crytocurrency, blockchain and gold. As more money is pumped into economies by governments, as well as the blockchain continuing to gain converts, the influences of disintermediation and democritisation will continue to bring changes into many previously locked industries. Education is one area where disruption is ripe.
- Low interest rates. There has been discussion of negative interest rates in some countries, but most bets are on increasing interest rates in the longer term. This will impact affordability of housing assets.
- Inflationary forces. The presence of large amounts of money through government stimulus along with increased demand once lockdowns end, can only (according to economic theory) be balanced out by increase in prices. Inflation is a concern.
- A greater impact of automation, as a result of the massive move to digital when lockdowns happened.
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