Welcome to the May issue of xpress.
It’s an important time of year as both Federal and State Budgets set the upcoming economic landscape for the business community.
The Federal Budget was handed down earlier this week and had a key focus on workforce participation, skills and training.
While the Budget’s focus on training and skilled migration is a positive initiative, it will take time to flow through to the economy.
One part of the two speed economy is driving a huge demand for labour, which is expected to place upward pressure on wages, inflation and interest rates.
Unfortunately the booming resources sector will soon be hit by the 600 pound carbon price gorilla and the Budget forecasts will need to be revised.
Nevertheless, we welcome a number of the positive initiatives that will provide a boost to the business community.
From a local perspective, the significant fall in GST earnings for South Australia is certainly a concern in the lead up to the State Budget and will limit the scope for the State Government to make the much needed cuts to business taxation, such as land tax.
Business SA has highlighted the need for the State Budget to address the taxation burdens being faced by the local business community.
It’s a very competitive environment out there and independent reports continue to highlight that our taxation levels are giving interstate businesses a significant advantage before we even get started.
Business SA recently provided a submission to the Department of Climate Change and Energy Efficiency in regards to the proposed implementation of a carbon pricing mechanism.
Business SA does not support the introduction of a carbon price in Australia without commensurate policies being implemented by our major trading partners and major carbon emitters. The submission can be read here.
Business SA welcomed the green light for the Adelaide Oval re-development to proceed.
The economic activity that will be created will flow into the creation of new projects throughout the city and the State, which will attract investment and signal South Australia as a serious place to do business.
Speaking of doing business, it was pleasing to see the success of the public holiday trading in the CBD on the final day of the Easter long weekend.
The vibrancy in the city showed what a great success it would be if further action was taken to allow extra shopping hours throughout the metropolitan area.
Public holiday trading is not only about providing a great convenience for shoppers, but also for the many workers wanting to work, for businesses and for tourism.
We welcomed the Reserve Bank’s decision last week to keep interest rates on hold. While recent inflation figures passed the upper end of the Reserve Bank’s target range, this was largely due to one-off factors associated with natural disasters, including the rise in fruit and vegetable prices.
Results from the latest Business SA Survey of Business Expectations indicates that local business confidence has fallen in the early stages of 2011 and it justifies the decision to leave rates on hold. More details about the results from the survey are in this issue of xpress.
As mentioned last month, Business SA’s Changes and Challenges Conference will be held in June and it will provide all the information for businesses regarding issues being faced in the workplace.
It will be one day that will help your business all year, and industry experts will be on hand to provide all the latest news and information through workshops, exhibits and presentations.
Business SA’s successful networking series continued with the latest event at the Adelaide Zoo. The largest attendance of the year turned out for a great evening and all the action is covered in this edition of xpress.
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 edition,