2 August 2017
South Australian businesses are rejecting the Weatherill Government’s 2017-18 Budget and its damaging bank tax, with the BankSA State Monitor showing confidence levels have fallen to a four-year low.
Business SA chief executive Nigel McBride says the survey, which was taken within weeks of the June State Budget, shows the bank tax is bad for business and consumers, with fewer businesses planning to expand and the mood of consumers falling to all-time lows.
The Bank SA State Monitor released today showed business confidence falling a net 16% since February, its sharpest decline since 1998 while consumer mood fell a net 8%, its sharpest decline ever.
Mr McBride said “the survey reflected how poorly the business community received the State Budget, with the survey recording a massive net pessimism rating of 46 per cent compared to just 10 per cent after last year’s budget.”
Optimism about the business climate in South Australia over the next 12 months also fell to its lowest level in almost 20 years.
“With the State recording the nation’s highest unemployment and fewer businesses preparing to take on new staff, we don’t need another bank tax to further damage confidence among business owners, any worker who has a superannuation account, or mum and dad shareholders. And we definitely don’t want to deter investment in this State.”
Regional business confidence has also plunged to new lows, with business owners in the Barossa, Mid North, Riverland and Yorke Peninsula recording a 22-point dive, from 108.7 points to 86.7 points, the lowest level recorded since 2001.
Mr McBride said “Alarmingly, State pride for both businesses and consumers recorded its largest fall ever recorded, and it is important that the State Government take proactive steps to restore confidence and kickstart much needed economic growth.”