CCIWA has called for targeted cost-of-living relief in response to the fuel crisis and strong investment in skills ahead of tomorrow’s State Budget.
The Western Australian Government has said health and housing will be the focus of the budget, with a number of announcements already made.
CCIWA Chief Economist, Dr Daniel Kiely, said the focus on housing was welcomed, but WA needs to ensure it has the workforce required to build the homes the state will need.
“Housing supply is a community issue but it’s also a business issue, and we consistently hear from businesses, particularly those in regional WA, that they struggle to find workers because those workers can’t find a place to live nearby,” he said.
“Any investment in housing must be complimented by strong investment in skills, including apprenticeships and traineeships, to ensure we have the pipeline of workers WA will need into the future.
“We welcome additional funding for wage subsidies for apprentices and trainees and efforts to bring more skilled workers to WA, but more will be needed to deliver projects in housing, clean energy, defence, mining and public infrastructure.”
Dr Kiely said the global shock from the war in the Middle East puts this Budget in a different context.
“The WA economy is resilient and well-positioned to weather global economic headwinds, but many WA businesses were struggling with high costs before the conflict in the Middle East started, and now they’re being squeezed even further,” he said.
“We’ve seen how vulnerable our supply chains are and how significant the impact from high fuel prices can be across households and businesses.
“CCIWA has called for some targeted measures such as freezing some fees and charges like car registrations for both businesses and households. We believe this can be achieved without driving up inflation.
“We’d also like to see some payroll tax relief for businesses, particularly those at the lower end of the scale who have been tipped into the payroll tax bracket just through wage increases.”
WA is expected to record another healthy surplus, but the budget will highlight how critical the current GST deal is for WA’s finances.
“Without the 2018 deal that gave WA its fair share of the GST, the State Budget would have a $6 billion black hole,” Dr Kiely said.
“When you consider the oversized contribution WA makes to the national economy, it is clear the GST deal allows WA to invest in the economic infrastructure that allows that contribution to continue.
“That’s why CCIWA made a strong submission to the GST review being conducted by the Productivity Commission, urging it to recommend the GST floor for WA is maintained.”
CCIWA has also called for investment in energy infrastructure, to ensure costs for homes and businesses remain as low as possible.
“We’ve recommended the Government support behind-the-meter options that reduce transmission requirements and support the overall affordability of the energy transition,” Dr Kiely said.
“We’ve also called for measures to help small and medium sized businesses to lower emissions.”
You can read CCIWA’s full submission to the State Budget here, and our policy recommendations in response to the fuel crisis here.
