State budget can restore business confidence after uncertainty prior to recent elections

Turning the tide: Business confidence could grow in the Illawarra after the NSW budget is handed down in June. Picture: Greg Ellis.
Turning the tide: Business confidence could grow in the Illawarra after the NSW budget is handed down in June. Picture: Greg Ellis.

Following the uncertainty created by the lead up to any state and federal election the NSW budget on June 18 will be opportunity to restore business confidence, according to the Illawarra Business Chamber.

Given the importance of NSW treasurer Dominic Perrottet's third budget the NSW Business Chamber has highlighted a number of proposals it would like to see the government adopt to maintain the state's position as the number one economy in Australia and promote further business growth.

The state and regional business bodies would like to see reforms to payroll tax in regional areas such as the Illawarra fast-tracked.

They would also like to see 30 percent of 'Restart NSW' funds invested in regional infrastructure.

Executive director Adam Zarth said during the state election campaign the Illawarra chamber called on the government to invest in skills and training, deliver regional infrastructure and make energy costs more affordable.

Illawarra businesses have been putting major investment and hiring decisions on hold during a period of significant uncertainty

Adam Zarth

"And now we have asked to see these priorities reflected in the state budget on 18 June. Illawarra businesses have been putting major investment and hiring decisions on hold during a period of significant uncertainty as a hard-fought state election was immediately followed by a tough federal campaign. With elections out of the way, the state budget on 18 June is an important opportunity for the NSW Government to build business confidence by providing clarity on how it will reduce costs for businesses and invest in jobs, skills and infrastructure."

During the election campaign the chamber backed the government's commitment to lifting the payroll tax threshold to $1 million over four years, which will allow an average business to employ an additional two staff.

Mr Zarth said given the significant burden of payroll tax in regional areas the chamber is calling on the government to fast-track reforms in the budget and apply them from 1 July 2019. And with 30 percent of infrastructure funding intended for regional areas he called on the state government to look at funding key road and rail projects that can support the Illawarra economy.

"We are also proposing the establishment of a NSW Infrastructure Coordination Authority to advise on delivery, contracting and performance," he said.

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This story State budget in June 'can restore business confidence' first appeared on Illawarra Mercury.