Treasurer Jim Chalmers has delivered a federal Budget that fails to address the challenges being faced by business in Australia according to South Australia’s peak business body.
Andrew Kay, CEO of the South Australian Business Chamber, expressed his disappointment, stating that the absence of new initiatives will have his members wondering what has been held back for a pre-election pitch.
“It is surprising that an extension of the instant asset write-off for small business has not been included,” said Kay. “It should be made a permanent feature of the tax system to help underpin investment and productivity in the small business sector.”
“While sweeteners such as personal tax cuts are in there to entice voters, it feels like the Government has kept their powder dry if they intend to woo business between now and election day.”
“The Treasurer made a statement about the “private sector resuming its rightful place as the main driver of this growth”, unfortunately that’s all it appeared to be – a statement,” said Kay. “The policy and reforms required to support such a claim were absent.”
Kay said that in a time of global economic uncertainty, the likelihood of an ongoing budget deficit could be viewed as cause for concern.
“Our capacity as a country to navigate future economic challenges may be constrained,” he said. “Global trade is facing a prolonged period of unrest with uncertainty about what lies ahead.”
The Chamber noted measures such as the $150 energy rebate and an investment in a Buy Australia consumer campaign as an offering to businesses.
“Unfortunately for businesses experiencing energy price increases upwards of 20% year on year, the rebate does not scratch the surface,” said Kay. “While the Buy Australia campaign will not address the challenges faced by sectors impacted by tariffs and trade wars.”
Measures specifically of benefit for our state were also lacking, according to the Chamber.
“We were already aware of the Whyalla support package and that is really the story for South Australia. The lack of significant infrastructure spend elsewhere reflects the fact that we are not a key player when it comes to marginal seats in the upcoming election,” said Kay.
“As the leading wine state in the country, our battling local producers will be pleased to see the cap on the WET (Wine Equalisation Tax) increased to $400,000, although many will remember a time not too long ago when that number was $500,000.”
