Tonight’s Federal Budget delivered a mixed bag for businesses and underscored the oversized contribution made by Western Australia to the national economy.
The forecast budget deficit for 2026-27 is $31.5 billion, $2.8 billion lower than predicted in December.
Mining exports are expected to continue to underpin export growth, despite predictions of slowing demand from China.
CCIWA Chief Economist, Dr Daniel Kiely, said the rest of the nation had WA to thank for smaller than forecast deficit and debt.
“The Treasurer has described this as an ambitious budget, and that wouldn’t be possible without WA,” he said.
“This state makes up almost half of the nation’s export economy and does most of the heavy lifting to support our nation’s prosperity.
“WA is the economic safety net for the entire nation.”
CCIWA has welcomed the strong focus on productivity and red tape reduction, which aims to cut costs for businesses by $10.2 billion per year.
“Simplified regulations, streamlined approvals and national competition reforms will ease the regulatory burden on businesses across the nation and help to turn around the nation’s flagging productivity.”
Businesses will welcome more funding to bring skilled tradies into the country but a redirection of apprenticeship funding away from larger businesses could lead to fewer opportunities.
“WA is facing a significant skills crunch, with an ambitious housing and infrastructure agenda but not enough skilled workers to deliver it,” Dr Kiely said.
“Apprenticeship and traineeships in WA have declined dramatically since Federal employer incentives were removed, and urgent action is needed to make sure WA and the nation has the pipeline of workers we will need.”
Dr Kiely said a tax increase for businesses held in discretionary trusts will hurt small and medium sized businesses.
“Many businesses use discretionary trusts, so the introduction of a 30% minimum tax from 2028 is just another hit for businesses in this country,” he said.
CCIWA has welcomed the permanent extension of the instant asset write-off, and an increase for small business expense deductions from $300 to $1,000 per year.
Other measures to support the WA economy include $173 million to support the growth of Australia’s critical minerals industry, and $179.9 million to modernise environmental approvals processes, plus $47.5 million to strengthen and streamline Australia’s foreign investment framework.
