It also ranked first for 32% of respondents, with increasing investment in infrastructure and rebalancing the budget over the next five years coming second and third in businesses’ priorities list.

As mining-related investment continues to evaporate, Ai Group CEO Innes Willox said businesses viewed these measures as fundamental to stimulate growth.

“There is no doubt that a degree of fiscal stimulus is appropriate at this time,” he said.

“Growth in GDP is below trend; national income is flat; the pace of employment growth remains sluggish and unemployment and underemployment are too high.

“At the same time the economy is struggling to rebalance in the wake of declining investment in mining-related projects.

“Focussing the stimulus on removing the tax barriers to business investment and raising investment in infrastructure would address a fundamental source of the current weakness and would help raise productivity and employment.”

Other priorities included stronger financial incentives for industry investment in R&D and innovation – which was almost on par with rebalancing the budget – increased spending on training and apprentices, and childcare support.

While the government has ruled out a reduction in the company tax rate, it has indicated that it is looking at alternative ways to boost business investment.

Ai Group’s suggestions on the issues include lifting the amount of capital expenditure small businesses deduct up front and a more generally available period of accelerated depreciation.

“The survey also highlights the need to focus on initiatives to boost business capabilities; workforce skills; the capacity to innovate and the ability to access world markets,” Willox added.

The full report is available here (http://pdf.aigroup.asn.au/Budget/2015/2015-16%20Budget%20Priorities.pdf)

The federal budget will be released on May 12.