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. Expect my orange shirted Budget Video to be out earlier packed with the goodies and baddies.
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.
Should you wish to discuss any of the above information, please feel free to contact our tax champions on: (03) 8393 1000.
Note: The material and contents provided in this article is informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
