Time right for tough budget

Business SA acknowledged that the State Government had done what is necessary by making the tough calls in the recent State Budget.

Business SA also supported the actions that look like maintaining the State’s AAA credit rating, which is crucial for the future borrowing ability of South Australia.

Business SA Acting Chief Executive Officer, Brett Mahoney, said that the State Government had delivered an essential State Budget. 

“This was always going to be a very tough budget and the Government has had no alternative but to make these bold decisions,” Mr Mahoney said.

Public Sector efficiency

“The cost and size of the public sector has been allowed to blow out for far too long and Business SA has been vocal in calling for a review of the inefficiency, red tape and layers of bureaucracy that exist throughout the public service.

“The private sector has paid for this excessive public sector growth and we are pleased the Government has finally bitten the bullet to address the issue.

“Today’s Budget signals a step towards the removal of permanent tenure and this simply reflects the conditions faced by the private sector.”

Infrastructure

“Business SA’s budget submission highlighted the importance of retaining a focus on building and maintaining infrastructure across South Australia, and we welcome the commitment to the Government’s pre-election promises.

“Business SA welcomes the $10.7 billion investment in infrastructure over four years which will boost the economy with 12,000 jobs.

“Infrastructure is an important driver of economic growth and improved infrastructure, from the Southern Expressway to critical CBD development, will accommodate a growing population.”

Skills Development

“Now is the perfect time to upskill employees, and we welcome the new high tech training centre for Tonsley cleantech precinct.

“With skill shortages looming, adequate funding for education and training is crucial to ensure that many of the reforms outlined in the Skills for All consultation paper can be implemented successfully.”

Taxation

“It is disappointing that the Budget did not provide any tax relief for business.

“South Australia’s current taxation burdens are having a direct impact on jobs and investment, and despite previous relief, we are not competing on a level playing field with the other States.

“A number of measures in the Budget will directly impact on competitiveness here in South Australia, including the removal of the payroll tax rebate for exporters and the increase in mining royalties.

“There’s no doubt that this is a tough budget, but if we want our economy to operate more efficiently and more productively then the anchors weighing down our growth must be removed.”

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