Sunshine Coast Business Council Chair Sandy Zubrinich today said there were many initiatives to be commended in the federal budget thanks to the $35 billion increase in revenue, largely due to more people participating in the workforce and more small businesses contributing taxes.
“It is a reflection of a stronger economy and it’s the best sign we have had for a decade,” Ms Zubrinich said.
“Based on the treasurer’s address last night, the government appears to have made some reasonable choices between paying down public debt and continuing its strong economy agenda.”
“The commitment to a longer term tax agenda — including the flattening of the tax scale for those earning between $40,000 and $200,000 — is encouraging and the budget seems to have set a foundation for further tax reforms in the future.
“The government may have a tough time getting the support they need to make these reforms however it’s clear that tax reform will be a significant campaigning platform in the next federal election.
Ms Zubrinich believes another important indicator of a strengthening economy is the drop in the percentage of working-age Australians on welfare to 15.1 per cent — the lowest level in over 25 years.
“Jobs growth not only allows people to participate in the workplace but improves their lifestyle and prospects.
“This is positive not only for the welfare of our citizens but also for the economy. This, along with the incentives announced to encourage older Australians back into the workforce, can only contribute to the increase in tax revenues, which hopefully will go some way in tackling the debt in the years to come.
“While some would argue that more could have been done to reduce debt which continues to place a strain on the economy, it is good to see that all the key economic measures have improved when compared to the 2017 budget, promising a positive outlook for the next financial year.
“We feel the budget still leaves some questions about the timing of the projected increase in wage growth against that of reaching full employment of five percent, which is important in regional areas such as the Sunshine Coast which generally experience lower wages whilst performing better than state average on the unemployment front.
“At a local level, the continued spend on much-needed transport infrastructure is good news for the Sunshine Coast and we welcome the $390 million commitment towards the duplication of the rail line between Beerburrum and Nambour and $3.3 billion for key Bruce Highway upgrades.”
“The $20,000 instant asset write-off continuing for another year for businesses with aggregated annual turnover less than $10 million allows small businesses to immediately deduct eligible purchases of less than $20,000. This is good news for regional Australia where the economies are underpinned by small business.”
// Ends.
The Sunshine Coast Business Council is the leading regional business advocacy group on the Sunshine Coast. It represents approximately 4,000 businesses through its membership, which includes key national and regional industry groups and their members as well as national and regional businesses.
For more information please visit www.scbusinesscouncil.com.au.
