Graphic arts to reap profits from Federal Budget –

According to Printing Industries analysis, the general rate of economic growth in the Australian economy provides the major influence on the printing industry. With the growth rate being revised downwards during the coming financial year, there is likely to be less of a positive flow-on effect to the printing and related sectors, according to Hagop Tchamkertenian, manager of industry and commercial policy.

“While tax cuts should help provide some welcome stimulus to printing industry economic activity, there is a strong possibility that the latest round may prove to be less stimulatory than previous cuts,” says Tchamkertenian. “This is because households may decide to reduce household debt levels instead of increasing their consumption expenditure.”

The printing industry's competitiveness should be improved following the Government's decision to end the three per cent tariff that applied to imported business inputs. The three per cent tariff was introduced in 1996 as a fiscal policy measure to address the budget deficit problem at the time.

Tchamkertenian emphasises the role Printing Industries played in the abolition of the tariff. “Following improvements to the Federal Government's fiscal position, Printing Industries began calling for the removal of the three per cent duty on imported business inputs,” he says. “Tonight's announcement represents a triumph for Printing Industries lobbying efforts, and is a welcome relief for the printing industry.”

Tchamkertenian also claims the changes to welfare are unlikely to impact greatly on the printing industry, as few of the targeted groups are likely to end up filling the skilled positions that are currently being sought by the industry. The industry could benefit from an additional skilled migrant intake however.

One thing the budget lacks is any new initiatives that are specifically tailored for the printing and associated sectors. “Following the end of the Enhanced Printing Industry Competitiveness Scheme (EPICS) last year,” says Tchamkertenian, “the printing industry today is one of the least assisted industries of the Australian economy.”