Business SA releases State Budget submission
Business SA has headlined its State Budget submission with a call on the Government to provide further tax relief for business.
Business SA’s State Budget Submission 2010-2011 reinforces many of the issues that have recently been identified as growing concerns for the business community.
The submission, which was hand-delivered by Business SA to the Treasurer some weeks ago, focuses on key issues that are critical to the long-term economic sustainability and competitiveness of South Australian business.
The issues, which contain a number of recommendations, include:
- Reducing and reforming taxation
- Improving Government efficiency and reducing wasteful spending
- Building and maintaining infrastructure, and
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Strengthening the education and training system.
Business SA Chief Executive Officer, Peter Vaughan, said that given the challenges that remain throughout the economy, the Government had to make some bold decisions.
“The upcoming State Budget will be tough, however it must make a lasting positive impression on the local economy,” Mr Vaughan said.
“By making the hard calls and demonstrating strong financial management, this State Budget could increase competitiveness across South Australia.
“We’ve faced a very challenging economic downturn and the State Government has the opportunity to demonstrate the leadership required to build confidence and get the local economy back on track.”
Taxation
“Let’s open this State for business and provide the most competitive and efficient business tax system in the country.
“South Australia has one of the most burdensome business tax systems in the nation and the Government must commit whole-heartedly to tax reform for local businesses. The current taxation burdens are having a direct impact on jobs.”
“We still have one of the lowest tax free thresholds in the nation for both payroll and land tax, and this is providing our interstate competitors with a free kick before we even get started.
“Payroll tax is a direct tax against employment, while land tax deters investment and the growth of local businesses.”
Government efficiency
“The State Budget must focus on reducing wasteful spending and abolishing government programs that compete with the private sector.
“It has been widely recognised that we have an over inflated public sector and the first step of action must be to abolish permanent tenure in the public service.
“The issues in the public sector do not lie with the front line emergency workers, but the many departments which have “excess employees” and efficiency issues.
“We look forward to the Government providing adequate evaluation on a case by case basis of the recommendations of the Sustainable Budget Commission.”
Infrastructure
“It is essential that the State Budget retains a focus on building and maintaining infrastructure across South Australia.
“Infrastructure is an important driver of economic growth and improved infrastructure must accommodate a growing population.
“Spending on crucial economic and social infrastructure is vital for the local economy and private sector involvement in the provision of infrastructure needs to be encouraged.
“Transport infrastructure, in particular, must be coordinated effectively and we call on the State Government to develop a comprehensive State Transport Strategy.”
Workforce Development
“The State Government must provide adequate funding to ensure that many of the reforms outlined in the Skills for All consultation paper can be implemented successfully.
“The introduction of an entitlement system and the provision of information services are issues that we have highlighted as being critical to industry needs.
“A well functioning education and training system is necessary to ensure that the workforce is highly skilled and that skill shortages are minimised.
“Business SA supports strong population growth and skilled migration to provide growing markets for business. This will underpin strong economic growth and offset skills shortages that result from strong industry-specific growth and an ageing population.”
Download the submission http://business-sa.com/the-economy/business-sa-state-budget-submission-2010-2011
