The 2022 – 2023 Federal Budget tonight was focused on easing the current cost of living pressures for middle-income Australians.
The South Australian Business Chamber Chief Executive Martin Haese had hoped to see more long-term thinking towards addressing skills shortages, and for local businesses not to be off the budget map.
“This budget is delivered at a crucial moment for the Australian economy. While people many think we are already moving out of the global pandemic, many businesses are still in a fragile state. Despite strong GDP, businesses face rising inflation, expected upwards wage pressures and fast-approaching interest rate rises.
“We needed this budget to invest in business for the long term. We hoped that there would be some tax reform, particularly an FBT waiver, which would act as a stimulus to economic recovery.
“The skills shortage is a massive issue across Australia. This has been consistently raised by our members and the broader business community. This budget certainly lacks depth for the number one issue facing business right now.
“What is disappointing is that South Australia is effectively MIA in terms of significant regional infrastructure investments. Most states were specifically listed as ‘primed for growth’, but this does not include South Australia. Although, the Regional Accelerator Program looks interesting, so we will be looking into that in the coming days.
“Similarly, the Modern Manufacturing Fund could be something to benefit South Australia. Historically, we have always had a strong manufacturing base. There is already a movement to bring back sovereign capability, so this could be the investment we’ve been looking for.
“The investment in infrastructure is welcomed here in South Australia. But when you unpick the figures, we get a $2.8b share of the $17.9b total national investment, and of that $2.26b is already committed to completing the North-South Corridor. We have been disappointed with a lack of game-changing infrastructure spending in SA in the past, and we were hoping for funding for big projects like the efficient and safe passage of west-bound freight vehicles around metropolitan Adelaide as Portrush Road is at capacity.
“Whilst there was some good news in the federal budget, it just did not go far enough. From July, there will be subsidies for apprentices and trainees. But the fact that they will be lower and limited to priority areas only is not the longer-term thinking we were after.”
The South Australian Business Chamber Director of Policy and Advocacy Kendall Crowe has found some positive elements to the budget but agrees that it does not go far enough.
“This budget will deliver tax deductions for small businesses that invest in training and boosting their digital capabilities. For every $100 spent, they will receive a $120 tax deduction for expenses relating to training their staff, cloud computing, cyber security or web design, she said.
“In an uncertain world economy, ensuring small businesses are prepared for the digital risks they face is critical. We encourage all businesses to take advantage of this tax deduction and invest in the skills of their existing team.
“The once-off cost of living relief payment is good for the consumer economy. The South Australian Business Chamber welcomes the individual cash support and tax offset measures announced tonight to help consumer and business recovery. The cuts to the fuel excise, the delivery of cheaper medicines and the cash payment formed the centrepiece of the budget. The South Australian Business Chamber now encourages all South Australians to spend this extra money with local businesses to boost the South Australian economy.
“What has shown some long-term investment is the $2.2b University Research Commercialisation Action Plan. In the South Australian Business Chamber’s list of recommendations for all levels of government, our Charter22 lists university and business collaboration as a critical priority to build a stronger economy.
“South Australia will happily take more from the Tourism Marketing Recovery Fund. Adding to the $20m committed by the new South Australian Labor Government, this is excellent news for tourism operators and regional economies.
“All in all, we can find some positive points in this federal budget, but it appears relatively short-sighted and doesn’t structurally address the systemic skills issues here in South Australia, particularly in our regions.”
