Tomorrow's State Budget represents a chance to arrest declining business confidence by providing business cost relief and targeted infrastructure spending, says VECCI.
“Business has been hit hard by higher interest rates, fuel costs and a stronger Australian dollar and will be looking for cuts in WorkCover premiums and a range of State taxes in tomorrow’s Victorian State Budget”, says VECCI’s Head of Economic and Industry Policy Steven Wojtkiw.
“Along with share and property market uncertainty, these cost increases have also impacted consumer and business confidence.
“VECCI’s latest Business Trends Survey, for example, shows that only 9 percent of respondents are predicting stronger growth in the Australian economy over the next twelve months and only 6 percent are predicting stronger growth in the Victorian economy.
“Tax relief in the area of payroll and land tax and abolition of the CBD carpark levy, which has not been shown to reduce congestion, as well as WorkCover premium cuts and targeted infrastructure spending would provide an immediate boost to overall business confidence and the bottom line of individual businesses,” says Mr Wojtkiw.
VECCI Pre-Budget submission – summary:
- No new taxes or charges
- Abolish CBD congestion levy
- Cut WorkCover premiums
- Cut payroll tax from 5.05 percent to 4.65 percent by July 2010
- Cut land tax middle rates for properties valued between $0.9m and $2.7m
- Reduce traffic congestion via public transport improvements and initial seed funding for the proposed East-West link
- Begin planning for new cleaner coal baseload power
- Invest in State's natural assets to counter the effects of bushfires, drought and floods
- Invest in water infrastructure to cut wastage through seepage and evaporation, as well as increased delivery of recycled water to business
- Further fund the Port Phillip Bay Channel Deepening Project with a Victorian Government contribution of at least $200 million
- Further progress on regulation reform
|
