Date issued: 3 February 2011
The next Federal Budget must be far-sighted and allow for important decisions on key issues such as infrastructure, tax, superannuation and comprehensive measures to absorb the cost of natural disaster recovery, CPA Australia has said in its Pre-Budget submission.
'The Australian economy faces a number of challenges, both domestic and global. While it weathered the global downturn, it is clear that more must be done to improve productivity and boost international competitiveness. This budget presents the ideal opportunity to lay the groundwork,' said CPA Australia CEO Alex Malley.
'Among the challenges we face are ensuring Australia’s capacity to make the necessary investments in much needed infrastructure – including roads, rail, ports and broadband.'
'We strongly support the aim to return the Budget to surplus, but there is the real danger that trying to do so in record time for its own sake would come at the expense of a far-sighted, measured approach, with serious consequences for Australia’s economic strength over the next five to ten years,' said Mr Malley.
'Extending the return-to-surplus deadline would enable the government to address the immediate issue while ensuring a solid platform for sustainable economic growth and addressing medium to longer-term challenges.'
'These issues cannot be viewed in isolation. They are all interrelated and together have significant implications for Australia’s ongoing economic health,' Mr Malley said.
'As such the next Budget must take a big picture and longer term view based on sound business and economic practice.'
Critical business and economic issues raised in CPA Australia’s submission include:
- the need for urgent state, business and personal tax reform
- the need for significant measures to increase Australians’ level of retirement savings including restoring the concessional contribution limits to their previous levels
- measures to reduce impediments to use superannuation funds for investment in infrastructure products
- adoption of complementary measures to ease business transition to the introduction of a carbon price.
Mr Malley said an effective flood recovery effort was also critical to a healthy broader economy.
'Assisting the business and communities in flood-affected areas must be a priority. Failure to do so will have significant and generational economic and social consequences.'
Some re-ordered spending initiatives CPA Australia would like to see considered include suspending the First Home-Owner Grant scheme and re-directing unspent and uncommitted funds from the Building the Education Revolution program to flood affected schools.
For further information read CPA Australia's Pre-Budget submission 2011–12 (PDF).