The 2014/15 Federal Budget provides some certainty for business

by admin-king | 16th May 2014

 

General Manager, King & Co Property Consultants, Wayne Robson today welcomed the reduction in company tax and the absence of any significant additional impediment to businesses.

With a budget based on very modest economic growth (GDP) of 2.5% in the next financial year, the additional $125 billion in proposed infrastructure is a welcome boost for industry generally. Mr Robson said ‘the proposed additional infrastructure spending can be expected to flow on to real estate through additional demand for industrial property from businesses involved in these projects’. 

Mr Robson added ‘It is clear that the drivers of the Australian economy are changing from being resource driven to a broader non-resource driven economy.  A diverse economy is essential to avoiding a boom/bust cycle.  Population growth and infrastructure are key elements to generating business activity and wealth in Queensland.  Policies that encourage positive movement in these economic drivers are always good news’.

Commenting on the possible impact on consumer confidence resulting from changes to government programs and income transfers to households such as the Family Benefit Payment Scheme, Mr Robson said ‘It seems the Treasurer has tried to spread the pain.  Greater certainty for business means increased opportunity for all Australians. This is fundamental to the success of our economy.  As businesses respond to improving conditions, employment and wealth opportunities will increase.  Ultimately a government that lives within its means is beneficial to all Australians.

When asked about the future for commercial real estate in South East Queensland Mr Robson said, ‘We are looking forward to the next year. We expect confidence to continue to improve particularly in the industrial property sector. There are opportunities to invest in the underlying strength of industrial property, achieve strong returns and positive cash flows. For owners wanting to sell, you will not get a better time to sell: banks are again lending and buyers are showing increasing confidence. It is an ideal time for businesses to consider becoming owner-occupiers rather than tenants!’


Wayne J Robson
General Manager
King & Co Property Consultants

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