The Federal Government’s preoccupation with delivering a balanced Budget is ringing hollow with the country’s businesses, who increasingly want a renewed focus on productivity and competitiveness according to a new survey published by the Australian Industry Group (Ai Group).

The survey of 330 companies across a range of sectors concluded that almost a third wanted a cut to the company tax, while 33 per cent said that increased infrastructure spending was crucial in the coming years.

"A new survey of Australian businesses shows a clear preference for stimulatory spending to build productivity rather than excessive budgetary constraint.  The report shows that the top Budget priorities for business are reducing the company tax rate and increasing infrastructure spending,” Ai Group’s CEO Innes Willox said. 

"Particularly in light of recent indications of further softening in the economy, the 2013-14 Budget should seek to directly support jobs and growth and not risk excessively detracting from aggregate demand. To this end, Ai Group is seeking action in a number of other key areas including:

  • Reducing the company tax rate to 25%;
  • Additional and ongoing support for skills education and training including initiatives to improve workforce literacy and numeracy, reform of apprenticeships and boosting the mature-age workforce;
  • Lifting business innovation and capability including by rebalancing incentives in Publicly Funded Research Organisations and introducing a program of collaboration vouchers for SMEs. Ai Group is also seeking a recommitment to ensure the new R&D Tax Incentive is effective;
  • Reducing energy costs through electricity market reforms;  
  • Ensuring that the existing financial assistance arrangements for industries impacted by the carbon tax are retained;
  • Aligning Australia’s carbon price with those in major overseas markets sooner rather than later;
  • Improving state and federal regulatory arrangements;
  • Increasing the migration planning level for 2013-14 from 190,000 to 200,000 and giving a sharper focus to skilled migration;
  • Adequate funding for the Defence industry as well as certainty on plans relating to major equipment acquisition and upgrade including the critical Future Submarine Program; and
  • Certainty over the future of the TradeStart program and improving the Export Market Development Grant Scheme.