Small Business Welcomes Budget Surplus, Tax Cuts and Calls for Corporate Tax Rate Acceleration: CCIQ
The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed the announcement of a budget surplus for the first time in a decade with the nation’s finances benefitting from higher commodity prices with income tax relief, a positive for the nation’s workers.
The Federal Budget papers revealed a surplus of A$7.1 billion effectively being brought forward a year earlier than originally forecast and at a time where receipts from Australia’s mining sector continues to support the economy amidst a backdrop of weakening business confidence and subdued growth.
CCIQ Head of Industry, Dan Petrie said a budget surplus is welcome as it negates the need to fund recurrent expenditure through debt and provides a strong platform upon which to enact economic reform.
“An Australian worker’s payment of income taxes, after child-related benefits and tax provisions, is higher than the OECD average of 14% and a reduction in that burden is far more effective than above inflation wage demands advocated by some unions.
“Small business which employs the bulk of workers across the country will see many of their staff keep more of their own money they earn instead of flowing to government coffers.
CCIQ notes that comprehensive tax reform, a focus on improving skills and education outcomes are positive themes to emerge from the budget but a lack of clarification around the instant-asset write-off remain a key frustration for small business.
“Matching education and skills with industry in regional areas has been a key plank of CCIQ’s advocacy in the last two years with policy makers providing a material boost in this area.
“Increasing the instant asset-write off to $30,000 and the expansion of that program is an obvious positive but a lack of certainty about making it a permanent measure is disappointing,” Mr Petrie said.
CCIQ welcomes the skills and training package which is crucial for the nation’s key export industries and overall competitiveness.
The Chamber of Commerce and Industry Queensland endorses the government’s infrastructure announcement of spending $100 billion over the next decade as a key plank in supporting the construction sector, particularly in regional Queensland.
“The government’s decision to pursue cuts to migration is a clear negative for businesses seeking to fill job vacancies in key industries which detracts from the skills package announced by the Treasurer,” Mr Petrie said.
The Budget at a Glance