VACC, the peak automotive industry body, considers the Treasurer, Mr John Lenders, to have acted appropriately in today’s State Budget.

The Treasurer focused on economic stimulus, preservation of jobs and weathering the impacts of the global financial slowdown and the Bushfire recovery.

The 2009-10 Victoria State Budget forecasts an increase in Government revenue, a welcome increase in spending and endeavors to maintain a surplus.

“Most importantly, the Brumby Government has done the right thing by stating its intention not to cut jobs,” VACC Executive Director, David Purchase, said.

“Small business owners are doing it tough and, at the same time, remain mindful of retaining staff and employment levels.

“But they need as much assistance as possible and look to the Government to provide the best small business tax environment. In this regard, it would have been of assistance to small business if the Government had reduced payroll tax, land tax, stamp duty and Workcover premiums.

“VACC, small business and the retail automotive industry, welcome the restraint on taxes and the fact that no new taxes were announced.

“However, the Government missed an opportunity to do more to stimulate the employment of apprentices and trainees by increasing the commencement and completion bonuses.

“More should have been done to stimulate retail activity. VACC recommends a stamp duty rebate on new cars sales – similar to that of the ‘first home owner’s grant’ - to stimulate the economy.

“More could be done to aid Bushfire affected businesses with stamp duty tax relief extended to business owners, replacing burnt-out vehicles.
 
“Treasurer John Lenders has acted responsibly in what are difficult circumstances. But as small businesses are the engine room of the economy, the Brumby Government needs to continue to provide them with the best business tax environment possible,” Mr Purchase said.