News

Budget a mixed bag for Mildura business

Wed, 04 May 2016 10:26:00

Mildura’s peak development body says the Federal Budget has delivered some important opportunities and wins for the district, but leaves unanswered questions about the future environment for the region’s key industries.

Mildura Development Corporation chief executive officer Jenny Garonne said important opportunities to drive jobs and growth in Sunraysia were key elements emerging from the budget papers.
“The reality in our region is that a large proportion of economic activity stems from small business and growth in that sector will create the jobs of the future,” Ms Garonne said.
“So it was good to see that support for small business was a platform in the Budget, with tax rates reductions and important tax intiatives,” she said.
“One of the key wins for our business operators is the increase in the number of businesses able to write-off purchases up to $20,000. 
“Currently businesses with turnover up to $2 million dollars can take advantage of the write-off, but the increase in the budget to a $10million threshold will help many businesses, producers and suppliers in our region.
“It means they can buy equipment to extend and grow their businesses through new technology, diversifying or value-adding, which obviously benefits the business concerned, but also has important economic spin-offs for the region.”
But Ms Garonne said it was extremely disappointing no announcement had been made on the backpackers’ tax.
“We are continuing to lobby on this issue and we have emphasized to the Government it’s imperative that any relief measures are made public as soon as possible,” she said.
“The travellers we want to attract to our region are making decisions now in regards to where they will spend their time and the plan for a 32.5 % tax on their earnings from July 1 makes Australia non-competitive.
“Producers need to be able to operate their businesses with certainty they have the labour requirements to complete their harvests and that will simply not be the case unless this issue is resolved positively.”
Ms Garonne said the region’s mining industry has also received a mixed outcome.

“There is $100 million for mapping of mineral, energy and groundwater in Northern Australia and South Australia, and it’s disappointing we weren’t included in that opportunity because support for the resources industry means jobs for our future,” she said.

“Our region produces more than $400 million worth of mineral sands and we have two new mines at planning stage near Balranald so it’s a disappointing omission, given our significance and the potential our region holds for the future in minerals production,” she said.

Ms Garonne said the Budget’s support for the wine industry was pleasing, with a reduction to the wine equalisation tax and a $50 m international promotional campaign to increase wine tourism.

For the environment, Ms Garonne said the $15 million carp eradication program would improve the river quality and would provide another boost to the Murray Region’s recreational tourism.