The PIAA welcomes tax cuts for small businesses but says last night’s federal budget fails to address the potentially disastrous energy security crisis facing Australian manufacturing.
“We’ve had members whose energy bills have doubled over the past 12 months and are set to double again over the next 12 months,” says PIAA CEO Andrew Macaulay. “This is helping to push manufacturing offshore and it’s potentially a disaster for the economy.
“Printing Industries is very concerned that this budget does not immediately address the energy security issue facing Australia, which if not rapidly addressed will distort most of the economic predictions underpinning the entire budget,” says Macaulay.
“Energy security has the potential to blow all of the budget assumptions out of the water. If bureaucratic distortions to the energy market are not removed, industry can only contract.”
Printing Industries is also concerned that the budget fails to address the future of Australia Post. “Printing Industries is seeking detail from government on the future of Australia Post within this budget," Macaulay says. "That organisation is clearly at an inflexion point; with a change in leadership, and with the damage that current policies of Australia Post are inflicting on the economy, it is high time the Government focused on reform of this key institution.”
The PIAA will also seek clarification on the budget's write down provisions for capital investment. “We do have reservations about the new imposts on the banks, as these costs will be borne by small business, and will certainly increase the cost of capital raising."
Macaulay describes other parts of the budget as 'relatively friendly for business' and welcomes tax cuts for small businesses.
“We know first-hand that these tax cuts will directly result in increased investment back into growing business, buying much-needed new equipment and hiring and training more people, resulting in a stronger Australian economy.
“We are also excited to see the government’s commitment to improving and increasing vocational training through the creation of the Skilling Australia Fund. We have reached out to government today to get greater detail on this.
“And we are delighted to see the extension of the immediate $20,000 deduction against capital purchases, and also the $300 million commitment to cutting red tape for business. These both benefit small business, which is the driver of the economy.”