Mr Mekhitarian was speaking informally before a breakfast seminar on how the Budget would affect businesses.
The seminar was held at University of New England’s Parramatta campus, with speakers Michael Peric, executive at banking group BOQ and David Pring, managing partner at KPMG’s Parramatta office, both getting to the nitty-gritty of a Budget that has been generally well-received and is expected to be passed by the Senate.
Mr Pring said the government had shown “strong leadership” in giving small businesses the “biggest thing they want - certainty” with its generous allowance of an instant asset write-off for purchases up to $20,000.
“(With this allowance) businesses can get on with running their businesses,” Mr Pring said. But he also pointed to the childcare package as another great benefit to business.
“What this gives is a flexible workforce and a larger pool of talent for employers,” he said.
However, Mr Pring said there was need for more tax reform, with a broader-based tax system, something he expected the government would cover in its upcoming White Paper.
Mr Peric said the Budget was “politically astute” and business and consumer confidence had been lifted.
He even noted a lift in Prime Minister Tony Abbott’s demeanour at a recent business conference in Brisbane.
“He appeared happier and was speaking confidently without notes,” Mr Peric said.
Chamber treasurer Eric Tjoeng told WSBA that the Budget “was a good start” to stimulating businesses but thought the 1.5 per cent reduction in the company tax rate for businesses with an annual turnover under $2 million should be extended to those with a turnover up to $5 million.
“Businesses turning over $5 million are still struggling,” he said. “The smaller you are, the more help you should get, so you can grow and make a bigger contribution to the economy.”
Mr Tjoeng said that, in many businesses, the owners were underpaying themselves.
He said the impetus for small businesses in the Budget would have a “domino effect”, flowing on to suppliers and manufacturers who would then employ more people.
