Master Builders Australia fears that the Prime Minister’s announcement of a $12 billion deterioration in revenue is a signal for business and other tax increases in the May Budget.
Wilhelm Harnisch, Master Builders Australia’s Chief Executive Officer said increasing the tax burden on business will only put jobs at risk, force more marginal businesses to close down all together and will in turn lead to further reductions in tax revenues.
“A better approach to address the deteriorating Budget position is make significant reductions in Government expenditure and pursue bold productivity reforms,” said Mr Harnisch.
“The worsening Budget “black hole” is alarming to the building and construction industry, many of whom are small businesses. It further threatens current fragile building and construction industry conditions and jobs.”
“The Government’s Budget challenge must be to match spending cuts commensurate with projected tax revenues. It cannot be the other way around by seeking to raise more tax revenue or go further into debt to match Government expenditures.”
Mr Harnisch believes the Governement needs to adopt fiscal and other productivity reform policies to help rebuild confidence in the business sector and allow it to continue to invest, create jobs and boost Australia’s economy.
