Land tax changes bulldoze business confidence

Business confidence in South Australia is significantly lower today than it was following the 2016 statewide blackout.

According to the ANZ/Property Council Survey, statewide confidence has decreased from 144 to 101 for the December quarter – the largest national quarterly decrease on record.

“Premier Steven Marshall’s risky land tax changes have taken a bulldozer to business confidence in South Australia,” said Property Council SA Executive Director Daniel Gannon.

“This represents South Australia’s lowest confidence level since 2012 and comes only 18 months after the Premier formed Government at the last State Election.

“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.

“This is a damning indictment on the State Government and sends a clear message that this risky policy is now diminishing the state’s confidence to invest, transact and grow.

“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.

“Premier Steven Marshall needs to remove investment uncertainty, restore confidence and rebuild trust with the business community. It’s time to turn the lights back on.”

Mr Gannon said South Australia’s quarterly deterioration of 43 points was the largest drop on record behind SA’s 20 point decrease in 2014 and Queensland’s 17 point drop in 2014.

The survey also revealed the following:

  1. State economic growth expectations. Worst result in nation, quarterly decrease of 45 points, worst result since March 2014.
  2. State Government performance index. Second worst result on record (-27.4), worst result since March 2016 quarter (-27.7), quarterly decrease of 48 points.
  3. Forward work schedule expectations. Second worst result on record (14.7), worst result since December 2011 quarter (13), quarterly decrease of 44 points, dropped from nation’s best to worst in one quarter.

Media contact:  Daniel Gannon | M 0421 374 363 E dgannon@propertycouncil.com.au