Business Wish list for Budget 2014

Company tax cut is number one on business wish list for this year’s budget

Budget priorities for Businesses include reduce company tax, increased investment in infrastructure and bringing the budget back to balance within 5 years, by 2019.

An Australian Industry Group survey of 364 businesses finds 70% rank reduced company tax as one of their top priorities.

This was closely followed by increasing spending on infrastructure (68%), while 57% said bringing the balancing the budget over the next five years was a priority.

These preferences were followed by 39% who want increased spending on training and apprentices and 39% who want to raise tax incentives for industry research and development, while 28% want to bring the budget into balance within two years.

Ai Group public policy director Peter Burn explained businesses want to avoid reduced government spending and increased taxes.

“Those two directions are exactly what’s being talked about. So that’s the risk at the moment for small and medium businesses. The government, in cutting spending or raising taxes, slows the economy,” says Burn.

Burn says SMEs are particularly concerned about the proposed deficit levy.

“Many small and medium businesses are taxed under the personal income system, not the company tax system,” he says.

Council of Small Business Australia executive director Peter Strong warns additional compliance costs, such as the proposed paid parental leave scheme, risk hindering growth.

“Don’t put in any speed bumps in the way of us because we’re the biggest tax collectors in the nation,” he says. “For example, paid parental leave, we shouldn’t be involved in it.”

Strong also wants the budget to help increase access to finance and capital for small businesses.

Source: www.smartcompany.com.au

To view the Australian Industry Group survey please click here