ACT Only jurisdiction to report a fall in Business Investment in 2022-2023
The latest State Statistical Bulletin figures released last week by the Parliamentary Library show that business investment in the ACT fell by a concerning -9.5 per cent in the year to June 2023, and the ACT was the only jurisdiction to experience a negative result.
As a stark outlier, not only was the ACT the only jurisdiction to report a fall in investment, but the next lowest jurisdiction, Tasmania, was still positive at 0.7 per cent and a full 10.2 per cent above the ACT.
The average mainland state showed a 7.2 per cent increase, led by South Australia at 10.2 per cent.
Shadow Minister for Business Leanne Castley said this is emblematic of a business sector who have no confidence in the ACT Labor-Greens government’s ability to support a business-friendly environment.
“While business investment can fluctuate, to be so far removed and such an outlier from any other jurisdiction indicates that the business sector is clearly not confident in investing in Canberra and is avoiding the ACT,” Ms Castley said.
“The ACT Labor-Greens government claim to be business friendly but treat business as a milk cow to fund its big spending.”
As the Canberra Business Chamber recently put it in their most recent budget submission ‘The perception is that it is often harder and more difficult to do business here [the ACT] and, as a small market, we need to work harder to attract and retain small business’.
“These figures provide proof to what the Canberra Business Chamber have been telling us and shows that the business sector is voting with their wallet and avoiding investment in Canberra,” Ms Castley said.
“ACT businesses, particularly small businesses are facing rising input costs, waning consumer confidence, workforce shortages and supply chain pressures.
“It is also concerning that in the increased inflationary environment the fall of 9.5 per cent is even greater in real terms and as for the likely impact of these terrible numbers.
“As a leading indicator, this shocking business investment number will no doubt contribute to the deteriorating budgetary position that the ACT finds itself in, led by a reckless Labor-Greens government,” Ms Castley concluded.
