Tonight's Budget targets families and taxpayers through a range of spending initiatives, but remains responsible with a surplus and some positive measures for business, says VECCI.

"The Budget has no doubt been influenced by the Federal Election due later this year and a strong continuing focus on security and defence concerns, but delivers some overdue taxation and infrastructure measures", says VECCI Chief Executive Officer, Neil Coulson.

"The expected surplus of over $2.4 billion for 2004/05 reflects the Government's recognition of the need to underpin continuing business confidence and put downward pressure on interest rates.

"In terms of business initiatives, the Budget contains some positive measures including:

• personal across-the-board income tax relief leading to increased consumer spending;
• proposed income tax relief for those on higher marginal tax rates, which should help mitigate the `brain drain' from Australia;
• the exemption of many wineries from the Wine Equalisation Tax;
• more business-friendly GST remittance options for small business;
• funding for the development of new low (greenhouse) emissions technologies;
• funding support for the Melbourne 2006 Commonwealth Games;
• infrastructure spending on key national highways and railways under Auslink; and
• measures to boost retirement savings via relaxation of the superannuation surcharge.

"We will examine closely the precise nature of Federal Government commitments to deliver key infrastructure projects in Victoria.

"Business needs productive infrastructure spending to support its efforts to take advantage of rapid world trade growth over the coming decades.

"Business will also require initiatives aimed at overcoming skills shortages such as increased funding for vocational education and training - on this note, we would like to have seen more funding in this area", says Mr Coulson.

For all media enquiries, please contact:
VECCI Strategic Communications
Ph:      (03) 8662 5226
email: media@vecci.org.au