The state’s businesses leaders are optimistic about improved conditions in the year ahead, according to feedback from the annual Business News chief executive survey, with tax reform identified as a priority issue whichever party is in government after the March poll.
The state’s businesses leaders are optimistic about improved conditions in the year ahead, according to feedback from the annual Business News chief executive survey, with tax reform identified as a priority issue whichever party is in government after the March poll.
About 56 per cent of the 39 business and community leaders surveyed told Business News they anticipated the environment for their businesses would improve in the year ahead, compared with about 45 per cent of respondents in last year’s survey.
All 39 responses are downloadable here.
A consistent theme among the comments was that 2017 would be a year of opportunity, driven by either an economic recovery or smart internal strategy; and the change in conditions can’t come soon enough, with 51 per cent of chiefs feeling conditions in 2016 had been poor.
The leader one of the state’s oldest companies, Lionel Samson Sadleirs Group chief executive Ian Kent, was one of those who predicted a turnaround in the year ahead.
“(2016) has been the most difficult year we have faced in the logistics industry for many years,” Mr Kent said.
“(In 2017) we see the green shoots starting to appear and we are well positioned to take advantage of improved consumer spending but we are expecting only modest growth in the short term.”
Among those surveyed by Business News to share that sentiment was ABN Group managing director Dale Alcock.
“I believe we will see the green shoots of recovery starting to appear in our market towards the second half of 2017,” Mr Alcock said.
Looking for leadership
The desire for reform or reduction of state taxes has grown even stronger than last year, with more than 40 per cent of chief executives eager for change as the state heads to the March election.
While payroll tax was the top tax issue among those surveyed, the Nationals WA plan to hike the production levy on the state’s top two iron ore producers also raised concerns – mirroring widespread opposition to the proposal among the political and business sectors.
Velpic chief executive Russell Francis and Red River Group chief executive Robert Williamson were among those critical of the Nationals’ plan.
Mr Francis said the government should forget mining taxes and get proactive about supporting new businesses of all types to enable WA to become a sought-after destination for entrepreneurs.
Mr Williamson said he hoped the iron ore levy rise remained a proposal, and never became law.
“Take a leaf out of the book of other states in their serious approach to engagement with our biggest trading partner, China,” he said.
Payroll tax policy came in for its share of criticism, too, a number of respondents urging its complete abolition, including Executive Risk Solutions chief executive Scott Houston.
He said the change he would most like to see floated as voters headed to the polls was a reduction or total removal of payroll tax, in addition to better support for local companies competing against the large multinationals for contracts.
HHG Legal Group chief executive Simon Creek was another hoping for removal of payroll tax, and also of stamp duty on the family home.
Stamp duty was a common concern, with varying proposals for changes all pointing towards a preference for a reduced reliance on the tax.
Access Housing Australia chief executive Garry Ellender proposed a broader land tax base to pay for a longer term-phase out of stamp duty.
Other priorities at the state level included spending and debt reduction, continued pursuit of the government’s privatisation agend,a and a focus on infrastructure and public transport.
Federally, the perennial issues of the GST distribution and need to cut company tax featured prominently, while a warning shot was fired to Canberra about the need for bipartisanship in pursuing reforms.
Liberty Executive Offices chief executive Jamie Vine summed up the mood with a message for Bill Shorten.
“Stop bickering with the government and put the country first,” Mr Vine said.
“Constant undermining may be the norm for the opposition, but it is very tiresome and entirely unhelpful for the Australian people.”