Growth which creates wealth and jobs and which lifts our living standards. Therefore the Government sees it as imperative that we increase the returns on the national investment in science and technology and research and development. Australia, however, came off a very low base and business needs to continue its investment in this key area. This is one of the reasons the Government remains committed to delivering sound economic management as a priority. Inflation is low, below the target band of 2 to 3 percent inflation nominated by the Reserve Bank.
Interest rates are more favourable today than they have been for decades.
Borrowing costs for business have fallen dramatically since mid 1996. Business loan rates have reduced by more than two percentage points in this period. The Government is on track to achieving an underlying Budget surplus in 1998-99. In short, the Government has established the necessary preconditions for moving the economy towards stronger and sustained growth. This has sparked the recent rise in the confidence of the business community.