CHRONICLE COLUMN – 5 MAY 2023 – Toowoomba Businesses Seek New Investment Incentives And Tax Reform In Federal Budget
An RSM Australia survey of Toowoomba Chamber members found the top initiative local businesses want actioned in this week’s Federal Budget is new investment incentives.
This was closely followed by cost of living relief, with the third most popular response being to reduce government debt. Local businesses felt the issue causing them the greatest pressure was staff and labour issues, followed by inflation costs, company and payroll tax burden and managing margins.
These four pain points ranked above other concerns including supply chain issues, energy security and interest rates.
New Investment Incentives and Tax Reform
When asked what initiatives, local businesses would like actioned to alleviate pain points, by far the most popular responses were for structural change and meaningful investment, in the shape of tax reform and injecting money into infrastructure projects.
When it comes to tax reform, local businesses are keen for the Federal Government to run the ruler over GST, ahead of introducing more targeted anti-avoidance regulations and implementing tax reform for individuals.
In line with a national survey of businesses conducted by RSM Australia, the Toowoomba survey found cost of living is putting pressure on family budgets, with almost three times the number of local businesses listing this as the number one concern ahead of wages not keeping up with inflation and demands being placed on the “bank of mum and dad”.
The RSM survey also found local pessimism surrounding this week’s Budget, with just over half the respondents expecting no change to their own financial position post-Budget, and one-third thinking they will be worse off. Fewer than one in 10 felt they would be better off. This contrasts to our national survey, where just over 50% of respondents felt they would be better off.
“Almost half the respondents felt somewhat insulated from the impact of future interest rate rises, saying their debt levels were low or would be manageable with further rises.
Toowoomba Chamber CEO Todd Rohl
“However, a third of local respondents said further interest rate rises would have significant impact on their cash flow and profitability.
“For one-sixth of respondents, the rate rises of 2022 and 2023 are already having a significant effect on profits”, Mr Rohl said.
The Toowoomba Chamber is partnering with RSM Australia to host the RSM Budget Breakfast on May 11 at The Oaks on Annand Street, Toowoomba, where RSM Australia will take a detailed look at the Budget and economic headwinds and how these will affect local businesses and outline where are the opportunities for the local business sector.
The event includes a discussion led by Caitlin Crowley of the Country Caller, with panellists Queensland Resources Council CEO Ian McFarlane and Deputy Mayor of Toowoomba Regional Council Geoff McDonald.
Grab your tickets here
