The Victorian Head of the national employer association Ai Group, Tim Piper, welcomed the Victorian Budget's focus on mental health, skills and education while recognising the concerns of some larger businesses about the new payroll tax levy.
Mr Piper said, "The leading place given to mental health in today's Budget is commendable. Improving our approach to mental health can have both social and economic benefits for Victorians. Businesses are increasingly dealing with mental health issues in workplaces and the greater focus on mental health in this Budget should include measures to improve the ability of employers and managers to play a constructive role in this area.
"The priority the Government is giving to skills development and education is particularly welcome. Importantly, the Victorian Skills Authority includes the involvement of industry in the identification of priority training areas and the development of the Victorian Skills Plans. This involvement is essential to ensure that skills development is relevant and responsive to changes in employment opportunities and industry needs.
"This initiative, together with the additional places and the extra funding for TAFE and other training providers should help improve opportunities for Victorians and, over time assist in lifting productivity and living standards. The emphasis on digital skills is timely and forward-looking.
"We also welcome the relief provided as a result of the higher payroll tax threshold and the lower rate of payroll tax for many regional businesses. These changes, though small, will accelerate the pace of job creation and support business expansion.
"Conversely, the increases in other areas of taxation are of concern. The payroll tax levy related to mental health funding, while directly impacting only a small proportion of businesses, will dampen jobs growth and add another cost to doing business in the State. Similarly, the additional land tax measure will be felt by a range of businesses including many who are still doing it tough.
"The recourse to additional stamp duty in part reflects the lack of revenue options facing the states and territories. Stamp duties are widely recognised as one of the more damaging taxes in Australia and to be moving in this direction when other states are looking at ways to remove stamp duties is a step in the wrong direction," Mr Piper said.
Further comment: Tim Piper – 0411 430 301
