Business NSW Central Coast has acknowledged the Federal Government’s commitment to its election promises and putting fiscal repair at the heart of this week’s Federal Budget, which forecasts a challenging outlook for businesses already grappling with labour shortages, higher prices and global disruption.
But Business NSW Senior Director Regions and Visitor Economy, Paula Martin, said the “reasonable and proportionate Budget” is at risk of being overshadowed by planned industrial relations changes due to hit federal parliament later this week.
Treasurer Jim Chalmers has announced a projected deficit of $36.9B for the 2022/23 financial year, an improvement of $41.1B coming off the back of high income tax receipts and high commodity prices, she said.
“In a challenging economic environment, there is no doubt this Budget makes the hard decisions to kick off the process of getting us back in the black,” Martin said.
“With inflation set to peak above 7 per cent later this year before dropping to below 3.5 per cent through next financial year, there is some light on the horizon but our members are still doing it tough.
“Businesses have been resilient and adapted, cutting overheads where possible and even in some cases passing on costs to loyal customers where it’s unavoidable.
“With energy prices forecast to skyrocket next year, we welcome a $62.6M Budget boost for an energy efficiency grants program and a commitment to establish a $20B fund for energy transmission.
“We hope to see the $20B Rewiring the Nation fund for energy transmission delivering genuine savings to energy bills by shifting the costs of energy transition away from energy users.”
The Budget outlines expected economic growth this financial year of above 3 per cent, before slowing to 1.5 per cent next financial year, with unemployment expected to stay low by historical standards.
“More than 9 out 10 businesses have told us they are struggling with staff shortages, and it’s something we expect to remain in the short to medium term,” Martin said
“This Budget locks in some of the key measures discussed at the recent Jobs Summit, with an increase to the permanent Migration Program from 160,000 to 195,000 for this financial year, investing $42.2m to accelerate visa processing and 180,000 fee-free TAFE places to be delivered next year.” Ms Martin said.
“The Central Coast business community is set to benefit from a few items outlined in the budget.”
paula martin
“It is exciting to see $17.2M allocated to the development of the Central Coast Food Innovation Hub at Lisarow included.
“This Hub will be key to contributing to Australia’s food security and take advantage of our already thriving food production sector by encouraging new food start-ups and innovative food solutions.
“Workforce participation measures were also addressed in this budget.
“Higher subsidies in early childhood education and the ability for aged pensioners to increase their working hours will help the Central Coast improve its extremely low participation rate.
“Businesses need access to valuable experience offered by mature aged Australians and with a current shortage of trainers, this cohort of workers will help with much needed middle management experience and mentoring of existing staff to upskill.
“More than $530M to extend paid parental leave will also increase participation and productivity, with families able to access up to 26 weeks of leave by 2026.”
A focus on housing supply and affordability in the Budget will be welcomed by the Central Coast business community, Martin said.
“A New Housing Accord between government, investors and industry will see an initial $350M invested in this Budget to kickstart the delivery of one million new homes across the country over five years from 2024.
“There is a lot of work to do to ensure all levels of government and the private sector are pulling the right levers to make this aspirational target a reality, but our recent Central Coast Housing Summit in October clearly showed the need for sensible reform when it comes to getting young people and families into their own home.”
Martin said with natural disasters and the pandemic presenting a significant challenge for the mental health of business operators in the past few years, a $15.1M investment to extend tailored small business mental health and financial counselling programs is an important and welcome measure.
“But businesses will have one eye on proposed industrial relations legislation that is proposed to be introduced to parliament this week,” she said.
“With such a challenging economic environment laid out in this Budget, the last thing businesses need is both the looming threat of industry-wide bargaining supported through crippling strike action and spiralling wage costs.
“We encourage the Government to sit down and consult with the business community about how the Government can achieve its goal of incentivising bargaining without resorting to regular strike action on an industry-wide basis.
“Business, unions and government need to work together to support genuine, democratic workplace agreements and avoid job-killing industrial action from a bygone era.”
Source:
Media release, Oct 26
Business NSW Central Coast