Organisations representing Australia’s large and small businesses have called on the Australia Government to revive the private sector with the Budget that Treasurer Jim Chalmers is handing down tonight.
The Australian Industry Group (AIG) and Business Council of Australia (BCA) urged the Labor Government to drive economic growth by supporting the private sector with its fourth budget while other bodies called for tax and workplace reform, tax deductions, write-offs and red tape reduction.
IAG
IAG Chief Executive Innes Willox said rapid increases in Commonwealth and state government spending had provided Australia an economic lifeline over the last two years and proved critical in staving off the risk of recession.
"However, Australian governments cannot spend our way out of trouble forever. Rising tax burdens and the forecast decade of fiscal deficits ahead are simply unsustainable. It is imperative that the private sector engine of growth is restarted immediately," Willox said in a media release.
The employer organisation urged the Government to restore private sector growth by:
- making inflation and cost control a central objective
- restoring fiscal sustainability to public finances to avoid material cuts to key public services, an increase in taxes, and/or growing levels of public debt
- introducing measures to restore private sector employment generation, and
- introducing productivity-enhancing regulatory reforms and serious tax reforms.
BCA
The BCA recommends the following to help deliver a private sector-led recovery:
- a broad-based investment allowance of 20%
- stronger fiscal rules, including a cap on real spending growth of 2% annually
- deregulation to drive efficiencies and make it easier to do business
- workplace law reform to improve flexibility and productivity and lift wages, and
- reforms to housing supply, skills and health care systems
BCA Chief Executive Bran Black said private sector growth was critical to lifting Australia out of its weakest growth period in more than 30 years, outside the pandemic.
“We need to unleash the private sector because it’s ultimately businesses that generate economic growth and prosperity, which ultimately helps raise the living standards of every Australian,” Black said in a media release.
ACCI
The Australian Chamber of Commerce and Industry (ACCI) recommended:
- the company tax rate be reduced from 30% to 25%
- government spending be capped at less than 25% of gross domestic product
- investment incentives such as making the instant asset write off scheme permanent by increasing the value of eligible assets to $50,000 and eligible businesses to a turnover of $50 million.
“It’s been more than two decades since we had proper tax reform. The system is complex, costly and uncompetitive. The tax system businesses and taxpayers face is no longer fit for purpose,” Chief Executive Officer Andrew McKellar said in a media release.
COSBOA
The Council of Small Business Organisations Australia (COSBOA) called for:
- a permanent $150,000 instant asset write-off
- payroll tax overhaul with simpler and fairer rules across states
- 20% tax deduction for technology upgrades
- relief for startups
- a task force to “shred” outdated regulations and streamline clunky systems like the ATO and Fair Work Australia
- want workplace laws that allow casuals, contractors and sole traders to thrive
“SME (small and medium enterprises) are running on empty. If this budget doesn’t deliver real support, we’re looking at more shuttered shops, pricier goods and an economy that’s weaker for everyone,” COSBOA CEO Luke Achterstraat said in a media release.
ARA and NRA
The Australian Retailers Association (ARA) and National Retail Association (NRA) said key priorities for the $430 billion retail sector included:
- eliminating red tape and streamlining regulatory process
- securing financial support and tax exemptions for SME businesses
- ensuring retail crime was addressed, and
- improving access to careers in retail.
“With retail contributing almost one fifth of Australia’s gross domestic product, it’s clear we can’t have an economic recovery without a retail recovery,” ARA Chief Industry Affairs Officer Fleur Brown said in a media release.
