Govt must grab budget initiative: CPA Aust

Accounting organisation CPA Australia says the federal government must spell out a clear path for the future in its first budget.

Accountants have called on the Abbott government to grab the initiative in its first budget, rather than relying on a number of reviews alone to set the economy's course over the next decade and beyond.

In its pre-budget submission, CPA Australia notes the government has been delivering on its commitment for change through a number of major inquiries that will be critical in shaping the country's future.

"However, we cannot afford to wait for committees to report or risk ideas languishing in discussion papers," CPA chief executive Alex Malley said in a statement on Friday.

"The government's opportunity is to use the May budget to spell out a clear vision for the future and ensure that we are equipped to tackle the challenges of tomorrow head on."

Treasurer Joe Hockey will hand down his first budget on May 13.

Mr Malley said Australia must become more competitive on the world stage faced with the onset of the Asian Century, while being able to attract international investment to support the growth of Australian businesses.

Among its budget demands it wants the government to examine labour mobility, while developing national programs to improve the skills, knowledge and capabilities of Australian businesses.

It says there must be adequate funding for education and training bodies to support and train our next generation of Australian leaders, and for pilot programs for the introduction of Asian language studies in all Australian primary and secondary schools.

There should also be a clear statement of infrastructure policies, while the government must continue research and development tax incentives for small and medium enterprises.

One of the government's first acts was to support a Labor initiative that limits R&D tax breaks to companies with an income of less than $20 billion.

The change faces a Senate inquiry after the bill was supported in the lower house.

In a separate submission to the inquiry, Australian Industry Group said it remains firmly opposed to the changes.

The group says denying the R&D tax incentive to large companies will lead to a decline in R&D spending and a weakening of Australia's broader innovation system.

"The proposed change would increase the likelihood that research and development spending by larger businesses will be undertaken offshore," it said.

The housing industry hopes the budget will take action to help sustain a long overdue recovery in dwelling construction.

Housing Industry Association chief executive for industry policy Graham Wolfe said it was imperative the budget contained measures that promoted growth in new home building at a time when the mining investment boom was winding down.

"It is important that the commonwealth removes impediments to growth in the sector," Mr Wolfe said in the association's pre-budget submission.

He said there should be a Productivity Commission inquiry into the cost of housing, including taxation and its impact on affordability, productivity and economic activity.

There should also be increased incentives for employers of apprentices and continued funding for the national rental affordability scheme, but with greater accountability measures that tie housing programs to performance incentive benchmarks targeting improvements in the supply of new housing.

The association reported on Thursday that growth in new home sales recorded their first annual increase in five years during 2013.


Share

3 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world