Early uncertainty over the economic outlook doubled with tight credit conditions is expected to reduce Queensland business investment by 16.5 percent in 2009-10
By Jayne Munday | June 8, 2010
Early uncertainty over the economic outlook doubled with tight credit conditions is expected to reduce Queensland business investment by 16.5 percent in 2009-10, before posting a recovery next year.
According to today’s State Budget, non-dwelling construction is estimated to fall 13.25 percent in 2009-10, led by non-residential construction.
Engineering construction is expected to fall only modestly, supported by residual strength in mining and PPP road projects.
In line with weaker construction, machinery and equipment is estimated to fall 19.5 percent, with a subdued recovery in confidence tempering the effect of federal tax initiatives.
RECOVERY
Despite tough financial conditions restricting spending in 2009-10, business investment is forecast to grow 9.5 percent in 2010-11.
A recovery in business confidence, combined with a turnaround in non-dwelling construction, is also forecast to drive growth in machinery and equipment investment of 8.25 percent, while a relatively high Australian dollar should also support business purchases of imported capital items.
Growth in business finance is forecast to accelerate to 17.75 percent in 2011-12.
NEW BUSINESS PROGRAMS
In addition to having the most competitive payroll tax regime, Treasurer Andrew Fraser says Queensland has a range of initiatives which will help small business.
“We have a new $2.5 million innovation program which provides incentives for SMEs to get access to professional consultancy services and other services to invest in R&D and grow to the next level,” he says.
The Innovation Voucher Award Program will provide the additional funding over two years to target Queensland-based SMEs.
A pilot program will provide up to $50,000 per eligible business to build capability and sustainability through the commercialisation of research and the implementation of innovative practices.
The pilot will provide businesses with redeemable vouchers to access research and expert advice.
“It’s a cracker of a program,” Fraser adds.