Date issued: 7 June 2007

Today’s state budget will deliver social benefits and improve business operating conditions, says Australia’s largest accounting body, CPA Australia.

However, the organisation believes the State Government should also have reduced land tax and stamp duty to further lift the state’s competitiveness.

‘The budget’s two-stage payroll tax percentage cut is positive and will help take some pressure off South Australian business overall,’ CPA Australia state president Rob Jano said.

‘However, small business is the engine-room of the state’s economy and it would have been a positive measure for boosting employment and future training efforts if the payroll tax threshold was lifted.’

Mr Jano said SA’s land tax rates were still too high, and the Government could have set an example for other states by doing away with stamp duty on business property transfers, as agreed with the Commonwealth six years ago.

He said CPA Australia welcomed the budget’s focus on water security and the commitment to investigating the construction of a desalination plant.

‘This would make the state less vulnerable from an economic perspective and could also make it more competitive in terms of attracting future investment,’ he said.

Increased spending on infrastructure was also welcomed, as was the focus on trade schools and addressing the existing skill shortage.

‘Overall we see this budget as a good investment in the state’s long-term future,’ Mr Jano said.

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