2022: The year ahead
Aspen Corporate • 8 December 2021
2021 was to be the year we returned to a post-COVID normal however the pandemic has fundamentally changed the way many of us operate in our personal and work lives. Here is some of what we can expect in 2022:
Federal Election
The Federal election will be held between March and May 2022. Annoying text messages, robo messages and advertising are on their way!
Federal Budget in March
The timing of the election will bring the Federal Budget forward to March 2022. It’s an election year; expect many of the productivity based tax concessions to be extended.
Lock-in digital gains
- McKinsey & Company reports that consumer digital adoption rates accelerated dramatically during the pandemic.
- Many sectors will lock in the digital gains they made. Some, however, will see a decline in digital sales as consumers are no longer forced to shop online – groceries for example.
- To lock in the gains of digitalisation, consumers expect trust, end-to-end digital service (from start to after sales service), and an improved online experience.
- Forced online adoption has changed the consumption habits of an older and wealthier portion of the market. The average age of online users in the McKinsey Global Sentiment Survey increased by around 3 years and spend around 4% more.
- Coming off a lower base, developing nations have experienced a much higher growth in digital adoption than developed nations; evening out global access.
Going green
Business and consumers will be expected to be mindful of their carbon footprint. A wasteful process is likely to diminish consumer appeal.
The Reserve Bank of Australia (RBA) delivered a 25 basis point rate cut, lowering the cash rate from 3.85% to 3.60%, the third reduction this year.
On 1 July 2025 the superannuation guarantee rate increased to 12% which is the final stage of a series of previously legislated increases.
The Governments intention is to ban non-compete clauses for low and middle-income employees and consult on the use of non-compete clauses for higher incomes.
The Productivity Commission (PC) has been tasked by the Australian Government to conduct an inquiry into creating a more dynamic and resilient economy.
The Australian Government has passed new legislation to reduce student loan debt by 20% and change the way that loan repayments are determined.
The Reserve Bank of Australia (RBA) held the cash rate steady at 3.85% in July.
