In the days since last Thursday’s release of the first Malinauskas/Mulligan state budget, we have had time to take it all in. Our initial view remains that this is a good budget.
Following the health focus of the election campaign, it was no surprise that this budget followed a similar theme. But business and industry were not left out. There is good news for skills development which has been a significant challenge for our members since before the pandemic. This budget addresses long-term skills development in South Australia, focusing on vocational education in high school, including some regional focus. Shorter-term initiatives include funding for subsidised training in areas of serious skills shortage.
The most notable allocation is the $100m Economic Recovery Fund to support SA businesses. We await further detail about its criteria and distribution.
On behalf of our members, we are particularly interested in the public procurement initiative and its associated benefits for the broader business community. Keeping the greatest proportion of taxpayer dollars in South Australia is extremely important. The budget’s local procurement measures are pleasing to see.
Returning to a surplus is the confidence boost that South Australian businesses need. This budget builds confidence because it brings no new taxes, invests in skills, and commits to putting more taxpayer dollars back into local businesses. By delaying some larger, longer-term projects, South Australia will return to a surplus quickly, giving the business community confidence. Businesses have survived a tumultuous two and half years of coping with the pandemic. They now face uncertainty around inflation, rising interest rates and increasing costs. No new taxes and no major hikes on fees and charges are good news.
Like any advocacy body, we also found what was missing from this budget. Absent in this budget is a previous payroll tax deduction that employers would receive when they took on new trainees and apprentices. This is unfortunate as it coincides with the end of the Federal Government Boosting Apprenticeship Commencement subsidies on 30 June 2022.
We have long called for payroll tax discounts for regional businesses that will enable regional businesses to be more competitive, especially those bordering states where payroll tax is a fraction of South Australian levels.
It is disappointing that the program that supported 750 apprenticeships and traineeships across government departments and agencies will not be continued. Only 350 trainee and apprenticeships places have been filled in the program. According to the budget papers, cutting it will save $15.5m.
The advocacy efforts of the South Australian Business Chamber at all levels of government continue beyond just the release of the budget. We remain committed to creating the best business conditions for all South Australian owners and employers.
