North Coast to benefit from Budget
A LOCAL academic says the Federal Government’s ‘middle-of-the-road, no risk’ Budget will have benefits for the North Coast.
Professor Ian Eddie, director of the Graduate College of Management at Southern Cross University, said the Budget was a conservative one with no big changes.
“The government is keeping spending levels up and has targeted its reduction in overall government expenditure so they can be back into a surplus position in three years,” Prof. Eddie said.
“Getting into surplus is based on the fact that Australia will grow very strongly over the next couple of years and that’s why they’re forecasting higher tax collections,” he said.
“The Budget predicts unemployment will drop to 4.75 per cent by this time next year which means we will be close to full employment in the economy but my personal fear is we are heading into a potentially inflationary environment.
“Inflationary pressures come from a very tight labour market.”
Prof. Eddie said small business managers and owner/operators on the North Coast would be pleased the government had brought forward changes for small corporations which would see a reduction in the corporate tax rate to 28 per cent.
“The Budget also increases the write-off of assets for small business to improve the efficiency of small operations and the government will crack down on non-GST compliance, which is forecast to raise an extra $3 billion out of the GST,” he said.
More money was on the way for North Coast hospitals and the health system and additional spending on nurse training was also a plus.
Local residents would also be interested in the focus on renewable energy with funds to be spent on clean energy technology.
Prof. Eddie said while the Budget was not directly providing more funds for training in our region, we could secure some of the 70,000 new training places nationally.
“This provides an opportunity to build the skills of the region and build business competitiveness on the North Coast,” he said.
The Budget also made provision for national broadband and increased spending for elite athletes.