Business ignores Hockey warnings
Business is ignoring Treasurer Joe Hockey's warnings about the Budget, calling for tax cuts to help them navigate tough economic times.
Budget submissions from lobby groups all effectively argue for less tax and more spending in their areas of need.
This year's Budget already faces a deficit blowout which, in December, was forecast to reach $31.2 billion after initially predicted to edge down to $17.1 billion.
But a sharp fall in commodity prices, a lift in unemployment and slower than expected wages growth have punched a hole in Government revenues.
Those declining revenues have not stopped business groups looking for assistance. The Australian Industry Group wants a 1.5 per cent cut in company tax for all businesses. So far the Government has only committed to giving it to small firms.
It also backed a Rudd government policy the coalition dumped - a $6000 instant asset write-off.
Group chief executive Innes Willox said Mr Hockey had to balance the need to bring the Budget back towards surplus and short-term economic weakness.
The Council of Small Business Australia wants fringe benefits tax on childcare and health services removed for small firms.
