May is budget season with the Victorian and Federal budgets handed down. Both will benefit Victorian business.
Road and rail infrastructure featured strongly in both budgets. Combined, almost $50 billion will go towards a number of Victorian Chamber priorities and other infrastructure projects, including the Airport Rail link and the North East Link.
Infrastructure highlights include:
Tourism will also see a boost with $20 million funding for the expansion of Avalon Airport and $153.2 million for a Geelong City Deal that includes a new convention centre and Stage 2 of the Shipwreck Coast Masterplan.
Regional and small business will benefit from cuts to the payroll tax threshold for regional Victorian businesses (now the lowest in the country) and an extension of the $20,000 instant asset write-off for a further 12 months.
All businesses will benefit from the Federal recommitment to cutting the company tax rate to 25 per cent over a ten-year period while personal income tax cuts for lower income earners will address cost of living pressures and inject additional spending into the economy.
The Victorian Budget also included an extensive skills package, including stronger secondary school pathways to apprenticeships and traineeships and better career advice to ensure more skilled workers are job ready.
However, Federal changes to the R&D Tax Incentive will make it more complicated and less attractive to undertake R&D in Australia, slowing business innovation and investment in Victoria.
Both budgets forecast a robust outlook for the Victorian and national economies, with strong and stable economic growth over the next four years, declining unemployment and strengthening wages growth.
All media enquiries may be directed to the Media and Communications Manager.
For all other enquiries, please contact the Victorian Chamber on (03) 8662 5333.