The three sponsors of next Friday’s federal budget lunch in Wollongong have voiced concerns about how Tuesday’s budget will impact on the region’s businesses.
Mike Halloran, Adam Cole and Simon Pomfret. Picture: GREG ELLIS
Illawarra Business Chamber chief executive Mike Halloran, KPMG partner Adam Cole and IRIS Research executive director Simon Pomfret said yesterday that slow global economic recovery, weak business confidence and trading conditions had local businesses concerned.
“Businesses are worried that the current economic conditions and government commitment to NDIS and Gonski creates a strong likelihood of business tax hikes to support the rapidly weakening budget position,” Mr Halloran said.
Mr Cole said that the reduced tax revenue and decrease in economic activity meant funding any new policy initiatives presented a challenge.
“We have already seen proposed reforms to superannuation and the Medicare levy prior to the budget and it would not be surprising to see further business tax reforms,” he said.
“This could be in respect to foreign controlled companies and possibly some targeted reforms in the resources sector. I also wouldn’t rule out changes to the CGT [capital gains tax] rules. All in all this will be a critical budget for the government in articulating their vision for the future of Australia’s tax reforms.”
Mr Pomfret said despite the looming federal election the budget statement next week would demonstrate that the good times were over.
“The combination of big spending during the mining boom followed by a slump in tax receipts will force the government to make some tough decisions,” he said.
“The cut in interest rates this week indicates that the economy is very soft and an expansionary fiscal policy will be significant in keeping growth at trend rates.”
Illawarra Business Chamber, IRIS Research and KPMG Wollongong are planning to help local business understand the federal budget with a thorough commentary on how it will impact the region and businesses.
Mr Halloran said the federal budget lunch would be held at Villa D’oro Function Centre on Friday, May 17, to provide a complete analysis of the budget commitments, outline changes to taxation and provide insight to the effects of the budget.
“There will also be a Q&A time for questions to be answered by our expert panel, which will include Peter Siebels, national managing partner of KPMG Private Enterprise.” he said.
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