The president of the Australian Chamber of Commerce and Industry has warned Prime Minister Tony Abbott that he must ensure the budget does not do further damage to business confidence. The prime minister, in keynote speech at an ACCI lunch in Sydney, has confirmed a tax cut for small business would be a key measure in next month's budget.
A previously flagged company tax cut will not go ahead, but business will also be spared a levy to pay for the dumped paid parental leave scheme.
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ACCI president Peter Hood, as he introduced the prime minister to business leaders at the lunch, said that while the budget should be fair, business was most concerned that it also protect business confidence.
"I don't think there is any doubt that we need a budget that is demonstrably fair and that encourages all sectors of the Australian economy to make equitable sacrifices that allow the budget to be at least balanced," Mr Hood said.
"We must be careful that in that process business regains confidence."
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"It is business and private sector growth that create the prosperity and jobs that we need and vibrant business means a vibrant Australia."
Mr Abbott told the gathering the May 12 budget would contain measures to cut the "tax bills" of small business.
But he didn't say whether it would cover unincorporated small businesses, or even its size, despite previously saying it would be at least a 1.5 per cent.
Mr Abbott also committed the government to reducing the budget deficit every year. "Each year will bring us closer to a surplus," he said.
That means government debt will be reduced, as will its interest rate bill.
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