The Print & Visual Communication Association has responded to Labor’s first Budget saying whilst it is ‘fiscally responsible’ given the current deficit and raging inflation, there is not much in it specifically for business or the print industry.
Treasurer Jim Chalmers declared the Budget to be responsible and “right for the times” by addressing cost-of-living relief which doesn’t put additional pressure on inflation; targeted investments to build a stronger, more resilient and modern economy; and the beginnings of of long-term Budget repair.
“A deteriorating global outlook, high inflation and energy prices, and rising interest rates make this a time of great challenge for Australians, with impacts on the economy and the Budget,” Chalmers said.
Included in the Budget are provisions are fee-free TAFE and vocational education places – 180,000 places in 2023 as part of a $1 billion agreement with the states and territories.
The Budget has forecast steep increases in energy prices. Electricity is tipped to increase by 20 per cent this year and a further 30 per cent next year, with gas prices to increase by 56 per cent.
To help with this the Australian Competition and Consumer Commission has been been to examine the voluntary Code of Conduct governing Gas Supply Agreements between gas suppliers and gas customers and advise on options to improve its operation, improve price transparency and ensure reasonable pricing. The government has now extended the ACCC’s role in this until 2030.
The Budget comes on the back of Treasury downgrading its economic forecast. This financial year economic growth is expected to expand by 3.25%, the 2024 financial year is forecast to grow by only 1.5%. Additionally, inflation is expected to peak at 7.75% this year before falling back to 3.5% through the next financial year. The unemployment rate, currently at 3.5%, is expected to rise to 4.5% next financial year.
“Under the current societal and economic circumstances being experienced in Australia and globally, Treasurer Chalmers budget could be considered as fiscally responsible for its spending restraint and savings, rather than having cash splashes that would negatively affect inflation.” PVCA CEO Kellie Northwood said.
“This Budget has not included much to benefit our industry generally, although there are likely to be indirect benefits through certain measures such as those relating to childcare, immigration, education and training, however these will not be realised for several years. Thankfully, the government has not added any additional regulatory burdens on businesses.”
PVCA GM – IR, Policy & Governance Charles Watson added, “This Budget has to be contextualised based on an initial baseline of current, medium and longer term economic forecasting, and taking into account current fiscal and monetary policy positions such as increasing interest rates, increasing inflation, increasing deficits and net debt, and social issues.
“An application of those factors will see limited economic growth over the coming years. That growth will be hampered by ongoing supply chain issues and a lack of labour with the right skills and competencies.
“The funding for tertiary places is welcomed, however the issue is bigger than merely funding places. Tertiary infrastructure, particularly in TAFES, need to be made fit for purpose. Additionally, attracting tertiary students into VET and through to completion of studies is an issue that needs to be addressed.”
“Although this budget can be seen as reasonable and practical, it has to be balanced against concerns over variously proposed IR related legislative amendments and their potential effects on productivity challenges. This is particularly the case over the coming years as Australia seeks to become a more developed economy that manufacturers and exports complex products, rather than the one that has been reliant on natural resource exportation” said Watson.
The PVCA will release a full Budget review and analysis later today.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter