Date issued: 13 May 2008

The Rudd Government’s first Budget has delivered on its key election commitments but not to the detriment of the broader economy and has prioritised major issues like climate change, productivity and skills.

‘It forms a good starting point for tackling the issues which need to be addressed to secure Australia’s long-term future,’ CPA Australia President Alex Malley said.

‘This is also a fiscally responsible budget. Those of us old enough to remember previous eras where sky high interest rates, inflation and unemployment combined to cruel the economy will understand the need for appropriate fiscal restraint at this time,’ Mr Malley said.

Lifting participation and productivity
CPA Australia is pleased to see the government delivering on its promise of personal tax cuts as we believe this will help encourage greater participation, increase efficiency and increase productivity.

‘These measures are of course a precursor to the government’s planned comprehensive and much needed tax review.

If productivity is to increase business must be freed of federal and state duplication and red tape,’ Mr Malley said. ‘And we will contribute to the review process.’

Tackling climate change
CPA Australia commends the government’s unprecedented funding commitment to this global issue.
The business and social implications of climate change are a priority for CPA Australia and we believe that government, business and the general community have a responsibility to work together to implement joint solutions.

‘Accountants as the strategic managers of business resources will be at the forefront of businesses’ response to addressing climate change,’ Mr Malley said.

‘While we’re encouraged by the fact that the government has delivered on its election promises in this area, we would like to have seen more done in providing incentives to the 2 million businesses who will not be part of the initial Australian Emissions Trading Scheme (AETS).

‘We encourage  the government to explore other possible incentives to the non-AETS businesses as a matter of urgency.

Fighting inflation
The budgetary measures aimed at curbing inflation are welcome. While the Australian economy is strong these are responsible measures in the present global climate of market volatility. CPA Australia welcomes the government leading by example in this respect by showing appropriate spending restraint.

For further information, including video and images, visit the Federal Budget section of our website.

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