Since our last Member Update, the business world has been rocked by the unexpected announcements in the Federal Budget around Capital Gains Tax (CGT) and Discretionary Trusts that will have a direct impact on business owners and investors in Australia.
I cannot remember a budget that has galvanised the business community in anger in such a way for many years.
At the time of writing, there has been talk of a CGT exemption for the Tech sector, but to suggest that this tax will only impact start-ups and only apply to the Tech sector is nonsense. The policy needs a broad rethink and consultation with business groups, but to date we have seen little appetite for this from the Government.
The Chamber has been advocating against the budget measures both through the Australian Chamber of Commerce and Industry (ACCI) in Canberra and more directly with SA based members of federal parliament. Unfortunately, it appears the Government is hellbent on pushing the Budget through this week and looks like having the numbers to do so. Hopefully, some further changes will be announced to mitigate the damage this will cause, because as it stands this budget penalises businesses that strive for best practice and productivity – the exact behaviours we should be encouraging in this country!
On the fuel front, we continue to consult with the State Government at the Fuel Roundtable each week. The Emergency Powers Bill passed through the Lower House last week, which will assist the Government in their actions should the Federal Government declare a Stage 4 emergency. We are currently at Stage 2 and there is no indication at this time that we will get to Stage 4 as negotiations for peace continue in the Middle East.
Cost pressures caused by higher fuel costs are continuing to affect businesses and we will have more to share on this when we release the results of our latest Survey of Business Expectations (SOBE) next week. Some sectors – e.g., regional and remote tourism — have been hit directly by changes in consumer behaviour, which are having a profound effect on their viability.
Keep an eye out for the latest SOBE when it lands in your inbox. It makes for interesting – and sobering – reading.
