Further energy bill relief, a continuation of the instant asset write-off and a partial extension in employer incentives for apprentices are the most welcome short-term measures for small to medium enterprises (SMEs) on the Central Coast in the Federal Budget, says Business NSW Regional Director Scott Goold.
Goold said SMEs will receive welcome but moderate benefit from the Budget amid challenging business conditions.
“Business NSW welcomes the $325 in energy relief for small business owners on the Coast, who are struggling with spiralling bills,” he said.
“Business owners will also benefit from a continuation of the instant asset write-off of up to $20,000 and a partial continuation of apprenticeship rebates for employers.
“We know energy costs for Central Coast businesses pose a significant burden, ranking just behind insurance and government fees and taxes.
“Most businesses on the Coast employ between one and 50 staff members and these businesses stand to gain the most from this initiative.
“However, the significant number of larger businesses with excessive energy costs and high payroll tax will be disappointed with the lack of structural reform.”
Goold said the modified stage three tax cuts commencing on July 1 offered an average tax cut of $1,888 and should provide some positive relief for SMEs that had seen customers ease off on their spending.
“This tax cut relief will have an even greater impact on the Central Coast economy if consumers and businesses buy local, so let’s make sure we keep it on the Coast,” he said.
“Attracting and retaining skilled workers remains a key concern for businesses across the region so it is encouraging to see ongoing support for apprentices, essential workers and the construction industry.”
Goold said employers taking on apprentices in priority areas would be eligible for an additional $1,000 ($5,000 in total) to help subsidise costs associated with employing an apprentice.
Individual apprentices training in priority areas will be eligible for an additional $2,000 ($5,000 in total) to assist them to undertake and complete their training.
The Government will also pay $8,300 for trainee nurses, teachers and social workers to do their six month mandatory training.
He said $90.6M had been committed nationally to boost the number of construction workers, including 20,000 new fee-free TAFE places and fast-tracked visa processing for about 1,900 potential migrants.
“The construction industry remains one of the largest employers on the Central Coast and demand for skilled workers will continue to grow given the surge in housing construction required,” he said.
“Central Coast businesses have also identified housing supply and housing affordability among the highest barriers to attracting and retaining skilled workers.
“Affordable housing close to where people work remains a critical priority for the Central Coast.”
Goold said it was encouraging to see $11.3B allocated towards building new homes.
This includes $1B for roads, sewers, energy, water and community infrastructure.
“It is essential local government works with the state and federal governments to ensure the Coast gets its share of infrastructure funding to support local housing growth,” he said.
Other infrastructure support specific to the Central Coast could come via the $40M regional airport incentive, Goold said.
Domestic manufacturing will also benefit through the Made in Australia initiative which involves a significant investment in local manufacturing capabilities ($22.7B over 10 years).
“The Made in Australia initiative focusses largely on incentives for the renewable energy sector and the diverse manufacturing base on the Central Coast, coupled with proximity to the Hunter region, may benefit our local economy through supply chain contracts for components, installation and servicing,” he said.