COMMITMENTS to inland rail, small business and youth employment get the thumbs up, but concerns about the lack of major initiatives that focus on key social and economic development issues in rural and regional Australia are the downside.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
That is Western Research Institute general manager Wendy Mason’s take on Tuesday night’s federal budget.
She said on Wednesday the commitment of $549 million to inland rail is sensible policy.
“It delivers economic benefits to the cities as much as rural Australia through improved productivity and wealth-creation,” she said.
“Rural and regional areas continue to generate a large proportion of Australia’s export wealth, so this is a good investment in the future health of the national economy.”
Ms Mason said the decision to lower the company tax rate to 27.5 per cent and increase the eligibility level to $10 million, was great news for the thousands of small to medium businesses in rural and regional areas.
“Also, the commitment to address youth unemployment and skills development will be welcomed by rural young people struggling to find work,” she said.
But Ms Mason was concerned other parts of the budget might disproportionately affect regional communities because the proposed income tax cuts started at $80,000, which was above the average weekly earnings of most people in rural and regional Australia.
* Plans by the Federal Government to cut funding for regional universities by 20 per cent could lead to the same problems we have seen in the regional TAFE sector, where there have been course closures and fee hikes.
* The decision not to fund the Murray Darling Medical School will be disappointing for many in rural NSW and Victoria.
* Plans to increase taxes on seasonal workers (the backpacker tax) will have implications for economic activity and production in the agricultural sector.
* The decision not to fully fund the Gonksi School Reforms will require further discussion to understand the implications for rural and regional schools.
* Further funding cuts to the ABC, which is relied upon by many rural communities.
The Western Research Institute (WRI) is a not-for-profit think-tank based in regional Australia which conducts social and economic research to support better decision-making and stronger investment in sustainable regional development.
WRI also provides social and economic research consultancy services to support sound infrastructure investments, successful grant applications, business case development, cost-benefit analysis, economic impact analysis and program evaluations.
