Budget disappointment

Peninsula Chamber of Commerce president Mr Matthew Wales has expressed disappointment at the budget handed down by Federal treasurer Mr Wayne Swan on the night of Tuesday, May 14, with little joy for small business.

"Clearly, this is a budget aimed at boosting welfare spending while doing little or nothing to grow the economy or support small business," said Mr Wales.

"From a business perspective, it is a pretty disappointing outcome with programs being axed and taxes rising that hurt both families and small business.

"From what we have seen, fees and taxes are up by $25 billion over the forward estimates and even though small business owners will only pay some of this directly, higher taxes will mean less consumer spending and lower revenue.

"This is extremely bad timing for the retail sector which is struggling to get back on its feet.

"Taking money out of the pockets of families will mean less money for essentials and even less money for discretionary spending.

"The 0.5 per cent increase in the Medicare levy from July 1, 2014, will also hit taxpayers which will compound the belt tightening impacts by consumers.

"On top of all that, small businesses will have the additional burden of increased super payments for their employees with a 0.25 per cent increase from July 1 this year.

"Our local business community is still counting the cost of the carbon tax, increases in electricity prices and the burden of government red tape so these new budget measures come as cold comfort to all of us," said Mr Wales.

Media Release, 15 May 2013

Matthew Wales, Peninsula Chamber of Commerce