Wednesday, 11 March 2020
The South Australian Business Chamber welcomes the State Government’s $350 million stimulus package announced today in response to the coronavirus crisis but urges the Government to consider further measures to stimulate demand and reduce costs for businesses.
The South Australian Business Chamber Chief Executive, Martin Haese, says safeguarding SA jobs is the absolute priority for the State right now.
“The South Australian Business Chamber welcomes the Premier’s announcement of $350 million including infrastructure maintenance projects for roads and other upgrades to support the
economy during these unprecedented times,” Mr Haese said.
“While we commend the Government on being proactive, what our businesses need now is surety.
“As the independent and local voice for SA businesses, we urge the Government to put the foot on the accelerator right now and announce to the business community as soon as possible just what these infrastructure projects will be.
“Importantly, the Government needs to ensure these works go to locals – local companies, local contractors, local supply chains and local jobs.”
Mr Haese also said the Government needs to go one step further than splashing the cash on infrastructure projects and consider temporary payroll tax relief.
“Payroll tax is a tax on employment,” said Mr Haese.
“The best thing the Government can do right now is reduce some of the crippling cost pressures facing our businesses in an environment of uncertain demand.
“We urge the Government to consider reducing the payroll tax from its existing 4.95 per cent to 4.5 per cent, which will help employers retain staff.”
In addition to further payroll tax reform, the South Australian Business Chamber also urged the Government to do a comprehensive review of State Government imposed statutory fees and charges as well as double down on programs and incentives to support the skills, education and training sector.
“History tells us that the number of people in education increases when unemployment rates increase,” Mr Haese said.
“The State government should be looking to the state’s future and ensuring we have the skills to lead us out of any economic downturn.
“The South Australian Business Chamber calls for increased incentives for VET training, especially in the health and community services sector, as well as building and construction.
“These will help safeguard existing needs as well as strengthen these sectors in the future.”
