Federal Budget’s Impact on the Advertising Industry: Immediate vs Long-Term Effects
Despite targeted cost of living relief, the federal budget’s impact on the advertising industry is minimal, according to agency leaders across Australia. While the Stage 3 tax cuts and a one-off $300 energy rebate offer some consumer support, most media and marketing professionals see little immediate upside for ad spend or agency growth.
James Dixon from Atomic 212° likens the government’s balancing act to threading a needle between inflation control and real-world support. Business sentiment remains historically low, and forward orders are shrinking, particularly in retail. PHD’s Mark Jarrett notes that the real effects of tax relief won’t materialise until Q3, reinforcing a survival mindset: “Survive til 25.”
Lexlab’s Alfie Lagos argues the budget feels more politically motivated than economically strategic, and predicts cautious advertisers will keep leaning on measurable digital channels. However, brands with vision should use this time to expand share of market while others pull back.
In summary, the federal budget’s impact on the advertising industry is largely indirect. Brands are being urged to maintain presence, invest smartly, and position for Q4 and beyond, where real gains may emerge.
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