The Canberra Business Chamber says there are no huge spending surprises in this year’s ACT Budget, but warns that many businesses are facing substantially higher tax bills next year.

“The Chamber is pleased that the government has made efforts to reprioritise spending, and there are some positive announcements in the Budget relating to stamp duty and missing middle developments, but we are concerned that businesses will be paying substantially higher costs in the new financial year,” Greg Harford, Canberra Business Chamber chief executive, said.

“While inflation is running at 4.2 per cent, the government’s overall tax take is going to increase by 10 per cent or $301 million over the next 12 months, with half of that increase coming from Payroll Tax changes announced in last year’s budget.

“This includes more businesses than ever being caught in the Payroll Tax net, with the threshold being reduced from $2 million to $1.75 million. While we are pleased that there are no new Payroll Tax hikes announced in this year’s budget, the announcements made last year will impact the business sector over the next 12 months.

“The Canberra Business Chamber thinks that we need more focus on the fragile business sector and we are keen to have a meaningful conversation about how we can deliver stronger economic growth for the territory.”

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