“This is a solid budget which balances the need for cost of living relief with modest fiscal consolidation and some important initiatives to grow the economy,’’ Business Council chief executive Jennifer Westacott said.
“We welcome the expected return to surplus after 15 years, which will drive confidence in markets and put the country on a stronger footing.
“Our improved budget position has been driven by significant increases in taxes paid by companies and workers due to a combination of high commodity prices and a strong labour market.
“This reflects business doing the economic heavy lifting – creating jobs, delivering world class exports and increased revenue.
“Now is the time to put our foot on the pedal to accelerate growth by unleashing the private sector, reducing red tape, making it easier to do business, and realising the full potential of all Australians.
“There is a missed opportunity to drive whole of economy growth through incentivising investment which remains the key to lifting productivity, delivering higher wages and ensuring sustainable returns to government.
“Australia cannot continue to turn a blind eye to our investment drought and poor productivity, which risks other countries overtaking us and important projects and new industries going offshore.
“Growing the economy by 3.5 per cent a year over the forward estimates would help deliver a budget surplus.
“We welcome the government’s growth initiatives, including the $3.7 billion skills package, the new Powering Australia Industry Growth Centre, support to grow quantum and AI, measures to lift women’s participation and the creation of a Net Zero Authority.
“Small business makes up around a third of our economy, so we back the incentives and additional support for small business, particularly around the instant asset write-off and energy efficiency.
“Notwithstanding some important growth initiatives, we remain concerned that the combination of the Petroleum Resource Rent Tax changes, gas price capping and regressive changes to workplace relations send the wrong signals on investment and certainty.
“We welcome the retention of the stage three personal tax cuts. This budget demonstrates beyond doubt why they remain essential. Once again, bracket creep is doing much of the heavy lifting on budget repair – that’s money not in people’s pockets.
“The planned cuts simplify the tax system, hand back bracket creep to hard working Australians and incentivise people to earn more.
“The BCA supports the government’s highly targeted cost of living measures which will ease the pressure on Australians doing it tough.
“The increase in the JobSeeker rate, which we have long called for, is welcome but it needs to be coupled with meaningful welfare reform for those struggling to get work in one of the strongest labour markets in decades.
“This needs to focus on improving the job services system, to drive greater incentives for people to enter and stay in the labour market.
“This budget exposes some inherent risks in our long-term fiscal position.
“We are locking in significant increases in structural spending – which the community wants and needs – off the back of a temporary boost to revenue. At the same time, we are seeing economic growth dwindle to its lowest rate in two decades outside the GFC and the pandemic.
“It is therefore crucial that we continue to set strong fiscal rules in tandem with important reforms to government services.
“Accelerating growth is key to sustaining stronger budgets and higher wages; as well as driving big investments in the clean energy sector, infrastructure projects and creating new industries.
“We must make Australia a more attractive destination for investment if we are to lift our productivity, sustain wages growth and sustain a stronger budget position.”
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