Australia’s largest and most representative business network, the Australian Chamber of Commerce and Industry, welcomes Labor’s commitment to deliver surpluses and pay down debt in its costings released today.
“We welcome Labor’s commitment to delivering surpluses and paying down debt, and for releasing costings a week prior to Election Day to allow scrutiny. We are reassured by the fact that it has been reviewed by an independent costing panel from the Parliamentary Budget Office,” said James Pearson, CEO of the Australian Chamber.
“Labor’s higher taxes to fund the higher level of spending will reduce incentives for people to earn and invest more and businesses to grow. That said, Labor has committed to cap the tax share of the economy at 24.3%, which will impose some fiscal discipline, although it is higher than the Coalition’s tax share cap of 23.9%. We would like to see spending capped at 24.7% of GDP, the long run average.
“It is important that Labor confirm that its stated goal of surplus budgets will remain, even if revenue is lower than estimated. For example, it is uncertain if all of the measures proposed by Labor to raise more money will pass the Senate.
“Sound budget management requires discipline and sometimes difficult choices about prioritising spending. That is what a well-run business has to do, and the same should be expected of government.”
The Australian Chamber is Australia’s largest network of employers, speaking for over 300,000 businesses employing millions of Australians in every sector of the economy, in every corner of Australia. Our Small Business is a Big Deal campaign gives voice to what small businesses need from the next federal government, and our Getting on with Business recommends ways to make Australia the best place in the world to do business.