In the lead up to the Victorian State Budget on Tuesday, the Head of the Australian Industry Group in Victoria, Tim Piper, has described the prospect of increased taxes in Victoria as "worrying" to the business community.
Mr Piper said Ai Group's biggest concern relating to the budget is the potential for new costs, taxes or levies being imposed on business, which would undermine confidence.
"We have consistently and constantly told the government that businesses have had enough of increased taxes and costs. We have said the government needs to reduce its own spending and costs in order to create a better business environment," Mr Piper said.
Victoria's is the highest established business failure rate of any state or territory. Some 13,725 established businesses with employees closed in Victoria during the 2023-24 financial year, the equivalent to 7.4% of all such businesses in the State.
Mr Piper said that a pre-budget paper provided to the State Treasurer by Ai Group, 'The Victorian Challenge', expressed the view that the number one issue was "no more taxes".
"There is only so much that you can wring out of businesses before there is a reaction. We hear regularly of small businesses reconsidering their existence due to land tax and other government costs in Victoria. Other states are actively working to recruit Victorian businesses to their state. This is not positive for us and we need to react to these threats.
"The most productive action the government can take in the budget on Tuesday is to support businesses and show they are vital to the economy. A good start would be to simply maintain the status quo on taxes. Additional taxes would be short sighted and potentially destructive.
"Victorian businesses will quickly heed the message if the government continues to make them a cash cow," Mr Piper said.
Media Enquiries:
Tim Piper – 0411 430 301
