Budget 2019

Release Date: 3/04/2019
The TCCI today welcomed the Federal Budget, particularly with regard to the increased focus on vocational education and training.

“The VET sector is extremely important for the future of young Tasmanians and the State in general,” TCCI CEO Michael Bailey said.

“The Coalition Government’s $525m skills package will boost the sector, including $156m to deliver a new incentive payment to support 80,000 new apprentices in occupations identified as experiencing skills shortages.

“The package will double the incentive payment for employers to $8000 for taking on an apprentice, while apprentices will also receive a $2000 incentive payment for training.”

Mr Bailey said the enhanced instant asset write-off will assist Tasmanian business – small, medium and large.

“This program immediately allows businesses to write-off assets worth up to $30,000, while expanding access to businesses with a turnover of up to $50 million, up from $10 million.”

Mr Bailey said the infrastructure investment of $210 million in Roads of Strategic Importance was confirmed, including;
  • $130 million for the Hobart to Sorrell Road Corridor,
  • $25 million for upgrade to the Murchison Highway,
  • $24 million for upgrades to Birralee Main Road,
  • $16 million for the Old Surrey Road and Massey Greene Drive, and
  • $15 million for Strahan Road
“It was also good to see the Budget confirm the $25 million under the Hobart City Deal to combat congestion as well as $10 million for a Tasman Highway Intelligent Transport Solutions plan.

“The TCCI notes the locking in of the commitment of $56 million to progress the Marinus second interconnector, which is critical to the future of Tasmania becoming the ‘Battery of the Nation’.”

Mr Bailey said the Coalition Budget was obviously aimed at the coming Federal election.
“The Coalition has clearly outlined the battle lines – its economic record versus that of the Labor Party. Neither this Budget nor the Labor Party’s response is surprising, both want to progress their policies after May.”

Mr Bailey said, obviously, the devil is in the detail of any Budget.

“The Treasurer Josh Frydenberg has predicted a $7.1 billion surplus in 2019-20, up from $4.1 billion expected at the Mid-Year Economic and Fiscal Outlook (MYEFO), the first surplus since 2007-08.

“Revenue in 2019-20 is forecast to be stronger than previously expected due to a boost in company tax receipts. But economic growth has been revised down with forecasts cut to 2¾ per cent in 2019-20 and 2020-21, down from 3 per cent at MYEFO.

“The global economy has lost some momentum while housing market developments are contributing uncertainty to the economic outlook.”

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