ANZ CEO Shayne Elliott discussed the 2020 budget with Ross Stevenson and Russel Howcroft on 3AW, providing insights into the economic measures announced by Treasurer Josh Frydenberg. The budget includes $507 billion in tax cuts, cash payments, and wage subsidies aimed at stimulating business investment.
Elliott expressed approval of the budget, stating, "I think you have to be happy with the budget, yes." He noted that the approach taken was comprehensive: "They’ve thrown everything at this in multiple pockets... ‘money’s cheap so borrow big and incentivise others to invest, spend and hire’."
When asked about the impact on businesses, Elliott was optimistic: "I think it will. Yes, it’s going to have that effect." He highlighted initiatives like instant asset write-offs as particularly attractive. However, he acknowledged challenges due to lockdowns in Victoria: "It’s fine, you can give me all sorts of incentives, but I still don’t know when I’m going to open my shop or my restaurant or my factory."
On concerns about debt levels relative to GDP, Elliott remarked: "It’s high by historical standards... It’s low by international standards... The good news is, the cost of funding it, the interest bill is literally zero."
Regarding stock market performance amidst economic difficulties, Elliott attributed its resilience to low interest rates: "Because money is so cheap and there’s so much money around... people sit there and go ‘well look... I invest it for the future and stocks look pretty good’."
In conclusion, Elliott emphasized that while current conditions present challenges and uncertainties due to lockdowns and debt levels, the measures in place are designed to stimulate investment and economic activity.