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Businesses miss out in Federal Budget

Release Date: 15/05/2013

Businesses are disappointed that the Federal Budget failed to deliver measures to assist small businesses.

“This was always going to be a difficult budget. The $18 billion deficit reflecting the significant decline in government revenue, softening employment, declining terms of trade and a high Australian dollar,” said Mr Mike Halloran, Interim CEO of the Illawarra Business Chamber.

“What is particularly disappointing is that there is nothing in this budget to support small businesses, who are the engine of our economy. With fees and taxes up by over $25 billion across the board, higher taxes mean less consumer spending and lower revenue.”

“This Budget is not going to boost confidence. Businesses were looking for some support to help face increases in the cost to the superannuation guarantee, rising energy costs and generally weak business confidence,” said Mr Halloran.

There is also a risk that changes to PAYG system from quarterly to monthly remits, could see larger and medium, dealing with the resulting cash flow crunch by delaying payments to small business suppliers.

“We are pleased to see $42 million allocated to additional lanes on Mt Ousley between Picton Road and Bulli Tops, which is fundamental for dealing with projected increases in freight movements. However, the State missed out on infrastructure spending overall, with only 10% of the $20 million infrastructure spend being allocated to NSW.”

“Regionally, the IBC welcome the continuation of the Regional Development Australia Fund, previously announced innovation precincts, increased support for skills to provide more flexible pathways for apprentices through the Alternative Pathways Program, and funding for a regional apprenticeship program. It would be a great outcome if we could see some of this funding spent in the Illawarra,” concluded Mr Halloran.

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Businesses miss out in Federal Budget

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