Small businesses will benefit from Mr Brumby’s budget with cuts to a number of taxes, apprentice trades bonuses and reduced red tape, the Victorian Automobile Chamber of Commerce (VACC) said today.

VACC Senior Manager for Government and Public Affairs, David Russell, said this year’s budget was positive - particularly as there were no new taxes and that there were reductions to existing taxes on businesses.

“There are a number of positive impacts for small business in this budget,” he said.

“The reduced land tax for small businesses is welcome, as is the reduced payroll tax (reduced from 5.25% to 5% over the next three years) and the reduction in Workcover premiums (down 10%) and reduced red tape (down 15%).

“We will be eagerly awaiting the Government’s Small Business Statement which will announce further initiatives worth $24 million.”

Mr Russell said the Apprentice “Trades” Bonus of $500 should see more young workers entering the industry; a positive, as apprentices are in short supply.

Mr Russell said the growth predicted for the Victorian economy was 3.35%.

VACC has welcomed the State Government’s commitments to increase expenditure on infrastructure while also reducing business costs by $1.4 billion over four years.