Date issued: 5 Jun 2008

Leading accounting and finance body CPA Australia welcomes payroll tax and infrastructure spending initiatives in today's state budget, but believes the State Government could have done more to enhance business competitiveness.

CPA Australia State President Hugh McPharlin said lifting the payroll tax threshold and reducing the rate would help businesses facing rising wage bills.

'This will also enhance South Australia's competitiveness, particularly in relation to Victoria,' he said.

'However, while the tax cuts are welcome they are narrowly focused and there wasn't the opportunity taken to enhance the state's competitiveness by reducing land tax or stamp duty on property transfers.'

Mr McPharlin said first home buyers would benefit from the new $4000 grant, particularly as property values continued to rise.

However, the average stamp duty on a house transfer was $12,000 and rising values would continue to put pressure on all buyers.

'There's a concern that just creating impetus at the bottom end pushes up demand and therefore prices,' Mr McPharlin said.

He said new spending on transport infrastructure would be good for business because of the local work it would generate.

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