State Budget 2009-10: Protecting jobs

Treasurer Troy Buswell said the 2009-10 State Budget included $23.8billion for a job-creating asset investment program as well as $155.1million in training and job support measures.

Mr Buswell said the cornerstone of the State Government's response to the challenging economic circumstances was job protection.

"We want every dollar this State spends to be a dollar that supports jobs," he said.

"Stimulating our economy through infrastructure spending will have an enduring economic effect of job creation and will help us put a floor under the current downturn."

The Treasurer said the State's asset investment program would support about 26,000 jobs in the coming year.

"More than $23billion will be spent on infrastructure projects such as roads, ports, schools, electricity and water, including a record $8.3billion in 2009-10.  

"Our partnerships with the Federal Government will also deliver more than $3billion in job-creating State housing, education and transport infrastructure over four years.

"As we undertake these asset investment programs, we are also working at the other end of the spectrum to protect jobs by supporting employers and employees by cutting red tape and providing employers and employees with incentives to boost trainee numbers.

"Our new payroll tax relief and small business support package will also help small businesses weather the storm and keep staff.

"These moves will protect jobs today and prepare the State to capture the benefits of the next boom."

Mr Buswell said $5.7million in additional funding had been allocated to continue to promote the State as a tourist destination in order to help protect the 80,000 local jobs in Western Australia's tourism industry.

The Government is also delivering its election commitment of a $28million Hospital Nurses Support Fund to help attract and retain hospital nursing staff.

"The Government is committed to ensuring that the Western Australian economy remains vibrant and survives the current economic environment," the Treasurer said.

The Budget includes a number of measures to protect jobs and support the economy.

Payroll Tax

The 2009-10 Budget will help support employment by small and medium-sized businesses through a one-off payroll tax rebate worth an estimated $100million. These tax relief measures seek to support jobs by reducing the burden on small and medium businesses. 

Employers with national payrolls of up to $1.6million will be paid a one-off rebate to fully offset their 2009-10 payroll tax liabilities, phasing out gradually for employers with payrolls of up to $3.2million.  This translates to about 6,700 employers effectively not having to pay payroll tax on about 68,000 employees in 2009-10.  

The 2009-10 Budget will also deliver new payroll tax exemptions for parental leave and volunteer emergency services work as part of the national program for payroll tax harmonisation.  This will reduce the financial cost for employers, contribute to incentives for increased workforce participation by women and remove a disincentive to employers allowing their staff paid time off to participate in activities toward community safety.

Training, Skills and Support

As part of the Government's strategy to assist WA industries, workers and jobseekers, a total of $47.4million will be committed over the period 2009-10 to 2011-12 to a targeted training and skills recognition response.

This package includes providing all eligible unemployed Western Australians with an entitlement to an exemption from course fees for any training place during the next three years, at an estimated cost of $17.6million; and assistance for people disadvantaged in the labour market to increase their foundation skills as a pathway to further training or employment, at a cost of $5.7million.

The Government will also provide additional resources for a rapid support team to support employers and apprentices affected by the economic downturn.

The Government is helping to protect first year apprentices and trainees through a temporary rebate of workers' compensation premiums.  This initiative will cost $10.6million over two years and will help to maintain the development of the skilled workforce needed when the State's economy returns to growth.

To assist the private sector to protect jobs, the Government has also allocated funding of $2million over two years to the Small Business Development Corporation for a Business Resilience Package.  This package will deliver training programs to small business operators who may be struggling in the current economic climate.

The Budget also provides additional funding of $5.7million in 2009-10 for tourism marketing to ensure WA remains highly competitive as a tourist destination.  This initiative will help to protect jobs with the tourism industry employing nearly 80,000 people across the State.

Infrastructure Spending to Support Economic Activity and Protect Jobs

A record $8.3billion will be invested in infrastructure in 2009-10, with $23.8billion to be invested over the forward estimates to 2012-13.  This investment will help generate employment and support economic activity.  

In 2009-10, the Government's Asset Investment Program includes:

• $1.2billion on expanding, maintaining and improving the State's electricity infrastructure

• $1.1billion on the State's water, wastewater and drainage services to ensure the ongoing quality and maintenance of water services and to meet increasing demand

• an unprecedented $1.1billion on schools and TAFE colleges throughout the State

• nearly $1.0billion on the construction of dwellings and the development of land throughout the State

• $654million on road construction and improvement works

• $572million on infrastructure to improve and extend the State's health care facilities

• $377million on port infrastructure across the State

• $363million on law and order-related projects.

WA Budget statements are available on http://www.ourstatebudget.wa.gov.au/