Budget bonus for families, but Victorian businesses remain sidelined and frustrated

Treasurer Jaclyn Symes’ Budget will be well received by many Victorian families, but struggling businesses hoping for tax relief are left without, says Australia’s largest accounting body CPA Australia.

“It has come to something when the confirmation of no new business taxes is presented as good news,” said CPA Australia’s Business Investment Lead, Gavan Ord. “It’s like the camel thanking its owner for not adding that final straw to its back.

“Though a period of stability and no new tax shocks is welcome and coincides with today’s much-needed cut to official interest rates, the conditions under which Victorian businesses operate remains incredibly challenging. 

“The Emergency Services and Volunteer Fund levy, announced in December, is an example of an added financial burden on Victorian property owners that further compounds the difficulties for businesses across the state.”

Mr Ord said the return to an operating surplus was an encouraging sign that would hopefully lead to pressure easing on Victorian taxpayers in the future. However, he said the Budget failed to show fiscal restraint. It has been fattened by a $5.7 billion increase in Commonwealth grants which is being spent on pre-election sweeteners rather than reducing state taxes. 

“Many Victorians will not realise that they already pay more in taxes than people in any other state or territory,” he said. “The cost-of-living relief provided in the Budget is largely down to the extra funding Victoria is receiving from federal government grants in the next 12 months.”

Several programs aimed at building small business capability were announced in the Budget, but their scale is limited. To support the small business sector, we need state and federal governments to place a higher priority, and more dollars into policies that back business investment and innovation, said Mr Ord.

“We need to revitalise the business environment by removing unnecessary regulatory burdens and supporting entrepreneurship,” he said.  

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