THE Victorian Chamber of Commerce and Industry calls on the Andrews Government to take action in tomorrow’s 2016-17 Budget to boost business competitiveness, enhance liveability and create new jobs.

“The government has already said that increases in payroll tax revenue are expected to help generate surpluses totalling $9.2 billion over the next four years,” said Victorian Chamber chief executive Mark Stone.

“It is important that Victorian business benefits from this strong financial position.”

“The Victorian Chamber has consistently called on the government to increase the payroll tax threshold from $550,000 to $850,000 and the budget’s strong financial position shows there is no better time to do so,” said Mr Stone.

Mr Stone said an increase in the payroll tax threshold would drive employment and keep Victoria competitive against other states.

“Victorian business is looking to the Andrews Government to introduce practical measures that lower business costs and encourage jobs growth,” said Mr Stone.

“That’s why our pre-budget submission also calls for a reduction in the average WorkCover premium, cuts to red tape, new productivity enhancing infrastructure and a new international engagement strategy.”

Mr Stone said the Victorian Chamber had welcomed the government’s recent announcement of $1.46 billion to progress the $5.5 billion Western Distributor project.

“We also seek a commitment to commence the Metropolitan Ring Road from Greensborough to Ringwood in this term of government and funding for a range of vital regional road and rail projects to reduce congestion and grow Victoria’s liveability,” said Mr Stone.

“With historically low interest rates and the fast growing Asian region on our doorstep, the government should use the budget to strengthen international engagement opportunities for Victoria’s priority sectors.

“The release last week of the government’s new China strategy, Partnerships to Prosperity, is a good example of how businesses can be supported to become more internationally competitive and forge new global business opportunities.”

Mr Stone said at a time of consistently high youth unemployment, tomorrow’s budget must also introduce reforms to improve the quality of Victoria’s education and training system.

“This means strengthening employment pathways and boosting apprenticeships and traineeships in the trades and key sectors such as retail, hospitality and tourism,” said Mr Stone.

“Pro-business measures like these will give Victorian business the best chance to stay competitive. They must be a priority in tomorrow’s budget,” said Mr Stone.

For a copy of the Victorian Chamber’s pre-budget submission, visit the website. 

THE resource industry is briefing a sigh of relief this morning after Parliament supported the abolition of the Road Safety Remuneration Tribunal (RSRT), however employers are disappointed that the Senate once again failed to restore the Australian Building and Construction Commission (ABCC).

“It beggars belief that the Senate could get it so right on abolishing the RSRT and yet so wrong on the ABCC – choosing to continue to turn a blind eye to lawlessness, militancy and thuggery in Australia’s construction industry,” says AMMA executive director Scott Barklamb.

RSRT:

“Rarely is it a good idea to conflate safety with the self-serving workplace relations agendas of highly political organisations such as the Transport Workers Union (TWU),” Mr Barklamb continues.

“AMMA supports existing safety regulators being provided with any additional resources necessary to properly address safety issues for the road transport sector. We never supported an unnecessary new tribunal that was always going to try to force owner-drivers out of business and boost the TWU’s membership.

“The RSRT can now be consigned to history as a flawed and misguided experiment that was shut down before permanent damage was done. With oil, fuel and gas transport scheduled to be next on the tribunal’s rate setting agenda, the resource industry is breathing a sigh of relief.”

ABCC:

“After years of misleading campaigns, hysteria and deliberate attempts by the CFMEU and the Opposition to confuse the debate, AMMA is hardly surprised that the restoration of the ABCC again failed in the Senate,” Mr Barklamb says.

“That the CFMEU yesterday resorted to exploiting the very serious and very emotive social issue of ice abuse shows how desperate the construction union is to maintain its deep-seated culture of law breaking.  This came as our courts yet again handed a significant penalty to a CFMEU official and described the union as having a “woeful history” of contravening workplace relations laws.

“We are disappointed Senate crossbenchers couldn’t see through the spin to recognise that this issue is simply about upholding Australia’s workplace laws, and ridding Australia’s building sites of unlawfulness, thuggery and militancy.

“Resource employers now look to the next Parliament to restore the ABCC and deliver positive outcomes for productivity and lawfulness across Australia’s building and construction sector.”

A national survey of more than 100 resource industry employers, released yesterday, shows 82% support the urgent restoration of the ABCC.

www.amma.org.au

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Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said Federal Parliament’s vote to abolish the Road Safety Remuneration Tribunal (RSRT) is a significant shot in the arm for small business owner-truck drivers, who were facing a bleak future as a result of the now defunct body.

“Common sense has prevailed with the passage of the Road Safety Remuneration Repeal Bill,” Ms Carnell said.

“Mum and dad owner-drivers around the country are this morning breathing a collective sigh of relief; they can now confidently get back on the road and on with the job of keeping their small businesses running, within a fair and competitive market.

“The RSRT Payment Order had the potential to send many small businesses to the wall, and I congratulate the Turnbull Government, along with the crossbench Senators who supported the repeal bill, for their swift action on this issue,” Ms Carnell said.

Ms Carnell said the decision to re-direct the savings from abolishing the RSRT to the National Heavy Vehicle Regulator (NHVR) is a welcome move. 

“The NHVR is best placed to develop practical measures to help ensure the truck drivers who go out to work on our roads every day, get home safely to their families,” Ms Carnell said.

Ms Carnell said even though the vote to dismantle the RSRT was successful, it will take time for the industry to get back to normal, and urged banks to bear these circumstances in mind.

“I encourage banks and other financial institutions to show some leniency towards owner-driver small business people; many have mortgaged the family home to cover the costs of running their enterprise and may be struggling financially due to the recent upheaval,” Ms Carnell said.

www.asbfeo.gov.au

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DESPITE a busy Christmas and New Year trading period, the first quarter of 2016 has been a challenging one for many Victorian businesses, according to the Victorian Chamber of Commerce and Industry’s latest Survey of Business Trends and Prospects.

Victorian Chamber Chief Executive Mark Stone said the survey, which captures the views of over 450 Victorian businesses, shows trading conditions were comparatively subdued in the first three months of 2016.

“Compared to the previous quarter, respondents to the survey reported a fall in exports, sales and profits.  Wage and labour on-cost pressures such as WorkCover premiums, payroll tax and penalty rates also continued to hit many businesses hard,” said Mr Stone.

“With seven of Victoria’s 13 public holidays taking place in the first quarter of the year, it is not surprising that many businesses were affected by higher operating costs, squeezing already tight cash-flow positions.”

Mr Stone said despite these difficulties, 22 per cent of respondents are anticipating stronger growth in both the Australian and Victorian economies over the next 12 months.

“Victorian business sentiment is positive, but it is also very fragile in the current economic environment.  What is needed is action to lift business sentiment and activity levels,” said Mr Stone.

Mr Stone said the forthcoming State and Federal Budgets provide a timely opportunity to do so with business-friendly initiatives that increase competitiveness, reduce business costs and create jobs.

“This is why the Victorian Chamber’s State Budget submission calls for practical measures to drive business growth such as an increase in the payroll tax threshold, a reduction in the average WorkCover premium rate, new productivity enhancing infrastructure and reforms to improve the quality of the state’s education and training system.”

For more information about the survey, please visit the Victorian Chamber website.

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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