Responsible Budget puts Australian economy on course for repair

The Victorian Automobile Chamber of Commerce views the Federal Budget as a step in the right direction to economic recovery.

Among the positives, according to the VACC, was Treasurer Wayne Swan’s announcement of an earlier than expected return to surplus in 2012-13 which he described as defying ‘global economic gravity’. Mr Swan also predicted that unemployment would fall from 5.3 percent in 2009-10 to the ‘full employment’ rate of 4.75 percent by mid 2012.

VACC, which represents 5500 small businesses in Victoria, welcomes tax reductions which will assist small business owners. The company tax rate will be cut to 28 percent in 2012-13 and the Budget will give all small businesses an instant write off for all assets costing up to $5,000 and a depreciation pool for other assets.

The organisation also welcomed the $661 million funding for 39,000 new training places and 22,500 apprenticeship start-ups.

In order to maintain the required skill levels it is important that the Government invests in future skills development with immediate effect, a VACC statement said.

Another positive is the $2.7 million, provided by the Budget, to support small business in accessing an early intervention dispute resolution service. The intervention scheme, particularly of benefit to franchisees, will save time and money for all parties. VACC franchisee business owners will welcome the opportunity to receive information and additional support.

This initiative is based on the successful model run by the Victorian Small Business Commissioner. VACC fully supports this funding to assist business owners to resolve issues before they escalate. Our experience is that the Victorian system works well and should be replicated for Franchise Code and Oil Code participants.

“This measure, and others, are important and should not be linked to the success or failure of the proposed Resources Tax,” VACC Executive Director, David Purchase, said.