Welcome to the July issue of xpress.
We’re into a new financial year and there are plenty of challenges ahead for the business community.
I recently spoke at a CEDA conference and outlined the pressures facing businesses across the State.
From July 1 the cost of doing business has increased with a significant increase in the minimum wage and the rise in labour costs from transitional provisions to Modern Awards.
South Australia is a small business State, and many of these small businesses will struggle to absorb these extra costs.
The Reserve Bank has implemented premature interest rate rises and these have had a major impact on business and consumer confidence across South Australia.
Results from the Commonwealth Bank Business SA Survey of Business Expectations for the June quarter have revealed a concerning 26 per cent drop in confidence and the pressures on business look set to remain throughout the year. There is more information about the survey results in this issue of xpress.
We also have a new Prime Minister and an upcoming Federal election, and if there is one thing that the business community does not cope well with it is uncertainty.
Later this month Business SA will release its State Budget submission and while we acknowledge that taxation is necessary for the functioning of responsible government, here in South Australia we have one of the most burdensome business tax systems in the nation.
A low tax environment is vital for business to remain competitive, provide employment opportunities and facilitate a high standard of living.
The changes to the Resources Super Profits Tax announced recently were substantial and are welcomed.
The tax will now only apply to iron ore and coal and the effective tax rate will be lower. South Australia’s largest and most important project – the Olympic Dam mine expansion – should no longer be in jeopardy.
The proposed reduction in the company tax will now only be from 30 per cent to 29 per cent, rather than the two per cent reduction originally announced.
Business SA’s latest networking event was held at the Adelaide Convention Centre and once again it was a great success with a large crowd in attendance. A full wrap-up is provided in this edition of xpress.
I would like to remind businesses that the Business SA Export Awards are now open and I encourage all exporting businesses from across the State to enter this year’s awards.
Business SA is delighted to have launched a brand new website which provides greatly improved navigation and functionality for our members. I encourage all members to take advantage of the many new features throughout the site.
It’s another busy issue of xpress as we also have a look at the assistance being offered from Business SA and we catch up with a couple of Business SA members.
Until next month