The new Federal Budget is long on the promise of creating jobs but short on how these jobs will be created
Sydney, NSW (PRWEB) May 21, 2011
Computer Networks have slammed last week’s government budget for its lack of support for SMEs. Most notably were the budget’s lack of tax relief measures, lack of incentives for overseas expansion and absence of means to reduce employment costs for SMEs.
Computer Networks CEO, Brian Pereira, stated that:
“It is highly doubtful that any significant change to the current situation without an overhaul of the current tax regime. Australia's engine room, the SME sector, will see no relief to the amount of taxes it forks out to state and federal government in a time where the Australian dollar's strength begs overseas expansion and growth. While large business negotiates their way out of the carbon tax and any mining tax, the brunt of the current antiquated tax regime is borne by small to medium enterprise.”
The Government has committed itself to spending big to develop a skilled Australian work force with a budget commitment of over $3 billion over the next six years. However, the concerns are that the marginal support for SMEs may lead to a shrinking SME sector and thereby a labour surplus.
“The new Federal Budget is long on the promise of creating jobs but short on how these jobs will be created. How would you increase employment when the cost of adding a person to the payroll is so prohibitive?” said Pereira.
The budget was marked by an absence of incentives to help SMEs expand their operations globally. This has been predicted to be not only another big blow to the SME sector, but also to the entire Australian economy.
“Our other disappointments lie in the complete lack of any chance in incentives for Australian businesses to use the strong Aussie dollar to grow its footprint in Asia and Europe. The opportunity for Australian enterprise to get on the globalisation train will not last long and without the recognition of our government regarding the opportunities, we risk missing the ride.... again."
Computer Networks is an Australian technology infrastructure and IT services company servicing the needs of SMEs. Computer Networks provide SMEs with a range of IT support and services, small business consulting, and cloud computing.