Industry support vital, says ATA
The ATA has made its annual budget submission to the Federal Government, calling for a number of measures to aid the road freight industry amid uncertain timesThe Australian Trucking Association has asked the Federal Government to cancel its planned increase of the superannuation guarantee, extend its instant asset write-off programme, and increase the base rate for the JobSeeker programme by at least $100 per week.
The points are three among several made by the ATA in its 2020-21 budget submission, all aimed at supporting the road transport industry and its many workers, and especially as it deals with the on-going economic turmoil wrought by the COVID-19 pandemic.
ATA Chair, David Smith, said the measures were vital for aiding wages growth for workers and would expand support for business investment.
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Put the brakes on rising super guarantee
"Increasing the superannuation guarantee would come at the cost of lower wages growth for workers, as the Reserve Bank and the independent Grattan Institute have recently pointed out," he said.
The compulsory superannuation guarantee is set to increase from its current 9.5 per cent in stages from July 2021, rising to 12 per cent by 2025.
"COVID-19 is not a one-off economic hit – the impact will continue for years to come," said Mr Smith.
"The need to assist business and economic growth will continue beyond the end of 2020."
Extend instant asset write-off
The ATA has also called for the Government's $150,000 instant asset write-off programme to be extended to June 30, 2021, and expanded with a long-term investment allowance to support the purchase of new assets like trucks and trailers.
"The existing measures were decided prior to the second wave of COVID cases and restrictions in Victoria. Business investment needs more support to ensure a stronger economic recovery."
Increase JobSeeker payments
As well as increasing support for business investment, the ATA submission recommends increasing the base rate of the JobSeeker payment by at least $100 per week.
"The base rate of JobSeeker is well below the poverty line and is so low that people receiving the allowance can't afford to search for jobs effectively. Increasing JobSeeker would also boost household spending and the economy," Mr Smith said.
"With a $100 per week increase, JobSeeker would still be only around half of the full-time minimum wage, maintaining the incentive for unemployed people to move into full-time work."
Click here to read the ATA's 2020-21 budget submission.
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