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Heading In The Right Direction – But More Ambition Needed
08 May 2018 | Archive
The Federal Budget 2018 is heading in the right direction but business would have liked more ambition for long-term budget repair and decreased reliance on increasing tax revenue, the Australian Chamber of Commerce and Industry said today.
While there are positive announcements in this budget, the projected surplus might be difficult to sustain without a stronger buffer should the global or domestic economic outlook prove weaker.
The Australian Chamber welcomed aspects of the Budget that answered calls in the Chamber’s Pre-Budget Submission including:
- Delivering personal tax cuts and staying the course to deliver business tax cuts
- Extension of the instant asset write-down for small businesses for a further year
- Investment into greater connectivity between cities and regional Australia
Less welcome is:
- The qualified approach to funding for Skilling Australia – although some of our concerns have been heeded
- The negative targeting of the research and development tax incentive
- The lack of greater ambition for budget repair and the continuing reliance on growth in tax receipts rather than addressing waste and inefficiencies in spending
“Overall this is a positive budget – but it leaves Australia more exposed than we would like to any deterioration in the global economic environment.
“It underlines the need to encourage the business community to invest, create wealth, and employ – in order to provide the stable foundations for the economic growth on which the budget forecasts depend”, Australian Chamber CEO James Pearson concluded.
For more information:
Duncan Bremner | Director, Public Affairs & Advocacy | 0448 822 666
Adam Carr | Director, Economics and Industry Policy | 0428 679 412