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Concerns around Australia’s slowing economy and ongoing environmental issues have led CPA Australia to consider putting forward a number of short-term initiatives in its pre-budget submission.
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Short-term fiscal stimulus needed: CPA Australia
02 January 2020
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CPA Australia’s general manager of external affairs, Paul Drum, said a survey of member sentiment ahead of its pre-budget submission has revealed a number of key concerns.
“Unsurprisingly, members are expressing their concerns about the current state of Australia’s economy - some of which is reflected in both the IMF’s recent report and the Australian government’s MYEFO report,” Mr Drum told Accountants Daily.
“For example, they have expressed their concerns about the low levels of wages growth and business investment in the economy overall.
“They have also expressed concerns about the economic and social impacts of both the drought and the ongoing bushfires.”
The professional association believes there are a series of short-term fiscal stimulus options and initiatives the government should consider to encourage greater consumption and investment, and will look to include them in its submission to government.
This includes revisiting the small business instant asset write-off - increased to $30,000 in the 2019-20 federal budget - and considering if the threshold should once again be broadened.
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Likewise, Chartered Accountants Australia and New Zealand (CA ANZ) believes the instant asset write-off should be a permanent feature of the tax system and potentially extended to all businesses, noting that the constant extensions and changes to its limits cause confusion among small businesses and their advisers alike.
CPA Australia also believes the government should reintroduce an investment allowance for business to encourage business investment, as well as consider an accelerated depreciation regime for business.
To help regional communities, Mr Drum believes there should be a government-driven broad-based repair, maintenance and preservation works program on public assets, with preference given to contracts being awarded to local trades businesses.
Businesses in drought affected areas should also be afforded a one-off government voucher up to the value of $500 per business that can be redeemed for professional business and investment advice, Mr Drum said.
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