"The Victorian Government's investments in housing and infrastructure and its support for job creation and skills development are positive and important measures that will support the recovery in the State's economy into next year and beyond," Tim Piper, the Victorian Head of the national employer association Ai Group, said today.
"The investments in health, housing, education and transport infrastructure are the cornerstone of the Government's plan for the recovery of business and jobs in the state. The Government's commitment to supporting the attraction of new business to Victoria as well as encouraging export opportunities also serve as important elements in the growth strategy.
"While modest, the payroll tax changes will also assist businesses create new jobs although this will be limited to smaller and medium-sized employers. We are concerned that the Government will undermine its support for employers by its announcement of an ill-conceived scheme to provide sick leave to casuals. After an initial Government-funded trial, the Government has flagged that the scheme is likely to be funded by a levy on employers. This will undoubtedly have an impact on business confidence and will result in ‘double dipping’. Employers are already paying casuals for sick leave through the 25% casual loading.
"The emphasis in the budget on TAFE and other training places; accredited short courses; apprenticeships; and traineeships is particularly welcome as are the investments in greater digital skills. These programs are central to the creation of new opportunities both for employees and businesses.
"On energy and climate, the Budget makes some significant investments in line with our calls this year for a clean recovery. Support for large energy user energy management and the development of a gas roadmap for the long-term viability of industrial gas users are particularly welcome. Upgrades to a broad range of buildings and energy infrastructure investment will support activity across supply chains now while paying dividends for many years to come. This funding will play a significant part in the achievability of the Victorian mid-term emissions strategy expected next month.
"Ai Group also welcomes the waste and recycling inclusions in the budget and notes that all initiatives should be considered against national activity, with harmonisation front of mind. This will maximise the value of budget spend.
"The increased spending to support the recovery together with the sharp reduction in taxation revenue means the State's public finances have been severely impacted. A projected debt of more than $150 billion is staggering at first blush. While the prospect of very low interest rates for some time is of considerable comfort, the fiscal situation will require very close monitoring. Over the next couple of years, it should also lead to a new drive to lift value for money in service delivery and to improve the operation of taxation arrangements both at state and national level," Mr Piper said.
Media contact: Tim Piper – 0411 430 301
