The New South Wales budget has precious little for small business, but business have welcomed plans for a Small Business Commissioner, greater infrastructure spending and a commitment to returning the state to surplus.
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The budget, the first for Premier Barry O’Farrell and Treasurer Mike Baird, had been promoted as a tough one, with $8 billion in savings promised over four years and $800 million in spending cuts announced.
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It might live up to its promise for small business: the Liberal and Nationals Government has pledged just $5 million in the 2011-212 budget for the state’s 650,000 small businesses, including funding for the NSW Business Advisory Services, entrepreneurs, regional business and exporters.
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Small Business Minister Katrina Hodgkinson says the Government was “determined to restore the state’s small business sector to the nation’s premier position.”
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Council of Small Business of Australia executive director Peter Strong welcomes the news of a Small Business Commissioner and says the Government has done a difficult job well.
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“I’ve heard negative comments from small business people, but the spending will get some action happening, which is good for confidence,” Strong says.
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“The other thing to remember is it’s a nine-month budget, so they can review it quickly.”
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“They’ve done what they needed to do after inheriting a mess.”
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Strong also welcomed the focus on infrastructure, saying it would boost confidence and deliver jobs. Infrastructure spending was increased by 12.5% over four years to $62.6 billion.
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And despite complaints from first home buyers about a tightening in stamp duty concessions, Strong says the restriction to new homes only would stimulate jobs for SMEs.
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While the state will fall into deficit this year on the back of reduced GST payments and stamp duty payments, the Government has promised a small return to surplus in 2012-13. It also promises annual growth in recurrent spending of less than 4% in the three years of the forward estimates.
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Baird has also increased mining royalties, lifted fees for public preschools, announced the closure of three jails, and capped public sector pay rises to 2.5%. There are also some 5,000 voluntary public-sector redundancies on offer.
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The NSW Business Chamber has praised the budget as a strong one that “tackles unnecessary expenses growth, cuts bureaucracy and invests heavily in much-needed infrastructure,” while Standard & Poor’s have raised questions about whether it will be able to achieve the billions in savings.
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Australian Industry Group NSW director Mark Goodsell also welcomed the investments in transport and regional infrastructure.
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