BUSINESS sentiment regarding Australia’s economy dropped during one of Australia’s longest-ever federal election campaigns, the Victorian Chamber of Commerce and Industry’s latest Survey of Business Trends and Prospects has revealed.

Many of the 380 Victorian businesses surveyed viewed the federal election campaign as lacking clear leadership and economic vision, and expressed frustration with the major political parties. Several said the prolonged uncertainty of the campaign had softened consumer spending, with one member describing the economy in this period as being “on hold with nobody spending at the moment”.

In the second quarter of 2016, which covered the three months to June 30 and most of the election campaign, business sentiment for the Australian and State economy dropped two percentage points to 20 per cent, meaning just one in five businesses expect stronger economic growth over the next financial year.

Victorian Chamber of Commerce and Industry Chief Executive Mark Stone said survey responses illustrated the need for policies that support and grow Victorian business.

“The business sentiments recorded in our most recent survey signal an opportunity for both State and Federal Governments to address business concerns and deliver pro-business policies that create jobs and enable growth,” Mr Stone said.

“While business confidence remains fragile, it is encouraging to see signs of optimism in the medium-term forecasts. We hope to see this confidence flourish as the new government gets on with the job of running the country.

“The Victorian Chamber will continue to advocate on behalf of business for policies that support major infrastructure projects in Victoria, boost jobs growth and competitiveness.”

Victoria’s business services sector was the most optimistic about the economic outlook for both state and federal economies over the next year, with a third expecting them to strengthen. Survey respondents from this sector believed the tough trading environment was exacerbated by uncertainty from the federal election campaign, but that the lacklustre performance will not last.

Businesses in the health, education and community services sector said jobs growth is likely to continue, as a lift in export activity is expected.

Regional-based businesses also reported a slightly more optimistic medium-term forecast than their metropolitan counterparts, as they recorded higher export levels and business investment.

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

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THE Australian Retailers Association (ARA) is urging the new Coalition Government Ministry to make business and the economy a focus of the next three years, despite the removal of the Small Business portfolio from Cabinet.

The ARA Coalition Government on its re-election, but says the challenges for the new Government cannot be ignored. He congratulated all new Ministers on their appointment, particularly new Small Business Minister, Michael McCormack; Minister for Education and Training, Simon Birmingham; Assistant Minister for Vocational Education and Skills, Karen Andrews, as well as Treasurer Scott Morrison and Minister for Revenue and Financial Services, Kelly O’Dwyer.

Russell Zimmerman, Executive Director of the ARA, said he is pleased to see consistency in Treasury portfolios, with the retention of Mr Morrison and Ms O’Dwyer, however, made note that the ARA is bitterly disappointed to see that the Small Business portfolio has been removed from cabinet.

“Given its important role within the economy, the omission of the Small Business portfolio from one of the largest cabinets in decades does not augur well,” said Mr Zimmerman.

“The exclusion of Small Business at a point when the economy needs business the most, is step backwards,” he said. “We can only hope that Mr McCormack is able to make the voice of Small Business heard.

“We also look forward to developing a close working relationship with Mr Birmingham and Ms Andrews on the further improvement of education and skills in Australia. The retainment of Michaelia Cash as Minister for Employment is also important for the retail industry.

“From the ARA’s perspective, there needs to be a consensus on a productivity agenda that drives growth through real workplace flexibility changes, lowering of the tax base for business to individuals, and pushing State-based reform on business costs such as construction, planning, and tax bases.

With the new Turnbull Ministry now in place the ARA is reminding Ministers of the importance of role the retail sector as Australia’s largest private sector employer with more than 10 percent of the working population employed in the retail industry.

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Institute of Public Accountants (IPA) has extended its congratulations to the Hon Michael McCormack MP as the newly appointed minister for small business.

“The IPA looks forward to working with Mr McCormack to ensure the focus on small business is maintained as we all know that small business is the critical sector for Australia’s economic well-being,” said IPA chief executive officer, Andrew Conway.

“We have long advocated for a strong, dedicated voice for small business within the Ministry. We are pleased that this will be the sole focus of the newly appointed minister.

“We recognise the efforts of the Hon Kelly O’Dwyer MP and the former small business cabinet minister, the Hon Bruce Billson, and we urge the government to maintain the focus on small business productivity as there is still much to be done. We need to see an acceleration of the momentum created by the former small business ministers.

“Our members live and breathe small business; more than two-thirds working in or with small business on a daily basis so we are well qualified to offer an opinion when it comes to small business.

“In addition, we have extended our partnership with Deakin University to create the IPA-Deakin SME Research Centre, to provide invaluable research to inform government on small business policy issues.

“This builds on the foundation of the first ever Australian Small Business White Paper launched last year.

“We look forward to extending this knowledge base to Minister McCormack to advance policies designed to boost small business productivity including:

Reforming the taxation system

• Simplifying the regulatory environment
• Improving access to affordable finance
• Improving education and skills of the small business sector
• Seizing export opportunities and taking advantage of trade agreements
• Ensuring a level playing field through fair competition laws
• Building an innovation system to support small business growth

For more information refer to the IPA Small Business White Paper at www.publicaccountants.org.au/whitepaper

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TODAY, the Council of Small Business of Australia (COSBOA) welcomed the announcement that Michael McCormack MP will be the new dedicated Small Business Minister. However, COSBOA stressed its concern that the small business portfolio has moved from Cabinet.

Peter Strong, CEO of COSBOA, praised the work of Minister Kelly O’Dwyer and hopes Mr McCormack can continue her hard work.

“Kelly O’Dwyer has been doing an exceptional job, but we understand that being the Assistant Treasurer, which will now be known as Minister for Revenue and Financial Services, is time consuming and we certainly don’t want Kelly burnt out.

"As a community of small business people, we are certainly aware of the importance of health and well-being,” says Mr. Strong.

“Mr McCormack has the confidence of the sector, however we are disappointed the portfolio has moved from cabinet and we will be seeking answers to why this has happened. Small business is powerful, employing around five million Australians and driving the country’s economy, so why has the portfolio moved? What’s happened and what pressures have caused this, perhaps big businesses and unions, are in play? In our opinion this is a step backwards for small business,” states Mr Strong.

COSBOA have highlighted some of the key issues for small business and for the future of the Australian economy, the key points are as follows:

• Competition policy and the enacting the Effects Test
• Creating a viable and effective vocational education and training system
• Confronting the two tiered workplace relation system that see big businesses and big unions manipulating legislation for their benefit not the benefit of workers or of the economy
• Inclusion of the self-employed in the health framework particularly for mental health
• Confronting manipulation of policy by these big businesses and unions
• Creation of a more efficient superannuation collection process

Peter Strong concluded, “We look forward to working with Mr. McCormack and progressing good policy for small business.”

He also adds: “We would also like to congratulate Senator Matthew Canavan on his appointment to cabinet, as he is a true champion of community and small business.”

For more information visit: http://www.cosboa.org.au

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