Business, particularly SME’s, should be disappointed by a small adjustment to payroll tax and not enough focus on business growth and attraction in the NSW Budget.
Matthew Tukaki, CEO of business advisory firm Sansgov and the former Head of the nation’s oldest employment company, has said that the budget is steady with some good announcements but not enough investment in jobs and growth, the environment and sustainability. Mr Tukaki has also cautioned previous announcements made around capping development costs at the local council level by saying it could have the reverse negative effect and put pressure on household debt.
“The reduction in payroll tax has been on the agenda for a while now and while it is a relief to see the cuts being bought forward by six months, the reality is we are still less competitive than other States such as Victoria and Queensland. A reduction to 5.5% is a good starting point, but I would have liked to see a timeline for parity with the other States in the budget. If we can further reduce taxes such as payroll then we can hopefully become more competitive thereby attracting further business start-ups here in the State. I also think it is time we looked at further concessions for business investment in some hard hit regions such as the Illawarra and Wollongong – not just more investment in training and skills in those areas. We need jobs growth to accompany skills investment.” Mr Tukaki said.
“I was also hoping to see the Government take the lead of States such as Victoria and be much more pro-active in foreign investment. We have large industrial sites that can be redeveloped into centres for innovation and learning, advanced manufacturing etc – so it is disappointing that this budget did not have more for business in these areas. I also think the Government is losing the opportunity to align a State economic recovery with fundamental business investment and growth” Mr Tukaki said.