Hagop Tchamkertenian, national manager for Policy and Government Affairs at Printing Industries says like all budgets there is both good news and some bad news.

He says, “The reductions in the company tax rate are a welcome measure. Small businesses get the 28 per cent rate from 2012-13 which is 2 years earlier than larger businesses and since bulk of the printing industry comprises of small businesses, this measure is beneficial for the printing industry.”

Commenting on the imported paper tariff Tchamkertenian continues, “Once local production of coated papers ends the printing industry will face a significant cost impost unless the 5 per cent tariff on paper is removed. Printing Industries will be maintaining the pressure on the Government until such time that a favourable industry decision is made.”

Printing Industries also reports that the new training package is also a positive measure. Even if not too many printing companies directly benefit from the new initiatives they will benefit indirectly if it succeeds in controlling skilled labour costs.

Modest personal income tax relief should see another $3.8bn end up in the pockets of consumers. If they spend all or most of this tax cut then it should drive up retail trade which is an important driver of activity in the printing industry, according to the Association.

Tchamkertenian also outlines that unemployment is forecast to fall which implies there will be labour related issues for the printing industry in terms of accessing skilled labour and potential labour cost increases.

He says, “Wage costs are forecast to rise at a significantly faster rate than inflation over the next two financial years. This is likely to place pressures on printing industry margins.”

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