Property Council blames land tax for drop in business confidence: Treasurer Rob Lucas blames their campaign against it
A new survey reveals SA has suffered the nation’s biggest drop in business confidence. The Property Council argues it’s a result of looming land tax changes, which the Treasurer disputes.
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Business confidence in South Australia has dropped to some of its lowest levels in years, according to a new national survey.
Results from the ANZ/Property Council Survey, undertaken four times a year, shows business confidence has seen the biggest drop in the country, to levels worse than following the statewide blackout.
Property Council members from around the country are asked to rate their expectations for the upcoming quarter, with 100 being a measure of neutral.
Survey results to be released on Thursday show SA’s confidence index has dropped from 144 in June, when it was the equal highest in the country, to 101.
The drop of 43 points is the largest drop, for any state, in the history of the survey that started in 2011.
Council Executive Director Daniel Gannon attributed the results to disharmony over the State Government’s proposed land tax reforms, which his group is actively campaigning against and which he has described as taking a bulldozer to business confidence.
However Treasurer Rob Lucas, who has not seen the figures, told The Advertiser this campaign would have contributed to any decline of confidence in the state.
“There is no doubt the campaign that has been run by the Property Council, and others, has raised unnecessary concerns in the community,” Mr Lucas said.
The survey outlines unflattering confidence levels in a range of areas.
State economic growth expectations fell by 45 points to make the figures the worst in the nation.
Forward work expectations also dropped from the best last quarter to the worst.
Mr Gannon said the figures represent SA’s lowest confidence level since 2012.
“They come only 18 months after the Premier Steven Marshall formed Government at the last state election,” he said.
“South Australia’s confidence levels have been nation-leading for the past six quarters, but following the recent State Budget, confidence has deteriorated by 43 points.”
Mr Gannon said confidence levels in the March 2017 quarter following the statewide blackout (130) were 29 points higher than current levels.
“The power went out across the state, it caused significant global damage to South Australia’s reputation and we became a national punchline, yet we were more confident in 2016 than we are today,” he said.
In September, SA’s unemployment rate rose to a three-year high to 7.3 per cent – the highest in the nation.
The new survey showed business confidence had declined across the country, with the national average dropping from 128 to 118.
The ACT was the only region to see an increase in business confidence, growing from 123 to 144.