Business SA says there is very little in the “restrained” 2019-20 South Australian Budget to help the state’s wider business community, other than boosting infrastructure spending to improve the state’s major transport thoroughfares.
Business SA Chief Executive Martin Haese said he was concerned to see net debt rising to record levels by 2023, a negligible reduction in public sector numbers, no additional payroll tax breaks, and no sign of a gas efficiency program.
“Treasurer Rob Lucas has raised fees and charges to increase revenue in the wake of a GST write-down, to allow the state to focus on major infrastructure spending,” Mr Haese said.
“There’s very little in this budget to boost business growth and help owners and operators still struggling to pay high energy and water costs. However, if the increased spending leads to more jobs, better economic conditions and improved transport outcomes, the state’s thousands of business owners could eventually see an improvement in economic conditions.
“Off the back of the Joyce Review, Business SA would have expected to see greater policy and program support to enable export growth for South Australian businesses.”
Mr Haese said public sector numbers were only estimated to fall by fewer than 600 FTEs over forward estimates, despite the Treasurer saying efficiencies needed to be made to make way for more education department staff to help year seven transition to high school by 2022.
Business SA supports the State Government’s decision to set aside $252 million towards the final stretch of the North South corridor, between the River Torrens and Darlington, and $1.1 billion on regional infrastructure improvement projects to help reduce road deaths and boost economic activity.
The first $440m of regional roads funding, over the next four years, will include upgrades to the Victor Harbor Road, Horrocks Highway and Sturt Highway.
“Additional work to improve flows along the North South Corridor, cutting congestion at major rail crossings, and making regional roads safer will make it easier to do business across South Australia by cutting transport costs and times, and helping country businesses move goods to market faster,” Mr Haese said.
He said a substantial increase to the solid waste levy, which has more than doubled in recent years, would also be challenging and land tax aggregation changes will add further costs.
He said Business SA praised the $550m down payment towards a new Women’s and Children’s Hospital and $150m towards a new Aboriginal Art Gallery.
With a focus on helping regional South Australian businesses grow, Mr Haese praised the $5m committed to protect the state’s horticulture industry against biosecurity and fruit fly threats, after a fruit fly outbreak threatened to decimate the Riverland earlier this year.
Business SA recognises South Australia will be in a tighter fiscal position with $2.1bn less GST than previously forecast in December but 2018-19 GST revenues are still five per cent higher than for 2017-18 with slightly positive growth into 2019-20.
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18 June 2019