The Illawarra didn’t get much in the federal budget – and that’s actually a good thing according to economist Alex Frino.
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In an analysis by the economics professor at the University of Wollongong, the major items that will be of benefit to the region totalled $63 million a year.
This included the income tax offset for those earning less than $125,000 a year, the increase in the Youth Allowance threshold for university students and the region’s share in the $50 million package to upgrade security screening at regional airports.
READ MORE: What’s in the budget for the Illawarra?
“There’s very little in it for the region,” Prof Frino said of the budget.
However, taking the ‘what's in it for me’ approach to the budget wasn’t the best idea, Prof Frino said.
For him, the government throwing money at the region would have caused problems.
“Personally and professionally I’m very pleased that this was not a massive-spending budget,” he said.
“The region is in the middle of a mini-boom – and that’s in contrast to the rest of NSW and Australia.
“That boom is driven by the construction sector and in turn the construction sector activity is driven by low interest rates and rising property prices that keep on rising according to the latest property data.
“Anything that puts at risk low interest rates could have devastating effects on the region and our economic activity.”
The Illawarra Business Chamber executive director Adam Zarth said small businesses in the region will benefit from the tax cuts.
“Cuts to personal income taxes will drive consumer spending and build confidence in the economy, while measures to address inequalities in business taxation will create a more level playing field for small businesses and start-ups,” Mr Zarth said.
“Small business will also benefit from the extension of the $20,000 instant asset write-off for 12 months, which will allow them to continue to reinvest in their operations.”
While the Maldon-Dombarton line – or the chamber’s version which is the South West Illawarra Rail Link – received no funding, Mr Zarth found evidence in the budget that bolstered its case.
“Investments in rail links into Port Botany and Western Sydney Airport demonstrate the importance in connecting these assets which get trucks off our roads, and further highlight the need for the South West Illawarra Rail Link to connect Port Kembla and the Illawarra to the growing economy of western Sydney,” he said.
The region’s aged care sector could also benefit from the government’s plan to create 14,000 extra in-home care places across the country.