Businesses the linchpin of state stimulus

Chris Rodwell

CCIWA Chief Executive Officer

 

Tuesday 17 March 2020

The State Government’s announcement of $607 million in fiscal stimulus is a recognition of the role of small and medium businesses as the key to protecting the economy.

The Government’s announcement includes a bringing forward of the raising of the payroll tax threshold to $1 million, a one-off cash payment of $17,500 to support the retention of workers and address other costs, and immediate relief via the deferral of payroll tax liabilities until the beginning of next financial year.

The Chamber of Commerce and Industry WA (CCIWA) strongly supports these measures. It is welcome that the State Government is listening to the calls of CCIWA and the business community to relieve pressure on struggling SMEs.

The best way to stimulate the economy is always to remove constraints on business growth and investment, which supports household incomes and better enables the retention of workers. Easing the burden of payroll tax provides a boost for the whole economy, making it easier and cheaper for businesses to grow, and critically, to retain staff.

Local operators in vulnerable sectors face the double hit of declining visitor numbers and the prospect of domestic consumer spending being withdrawn. Particularly vulnerable sectors include travel services, retail shopping, accommodation, education, cafes, restaurants and bars.

Supporting the cash-flow of WA businesses better enables them to preserve jobs in these difficult and uncertain times. That is rightly the current policy focus of both the State and Federal Governments.

Moving forward, it is important that both levels of Government continually monitor their policy settings to ensure they are supporting the economy. Governments should also continue to examine other potential measures to support the economy, including fast tracking efforts to lighten the regulatory burden on businesses, and ramping up spending on the maintenance of public assets.

Media contacts: Thomas Adolph 0427 876 846

 

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