Business NSW Central Coast has praised the Federal Budget, handed down on March 29, for providing targeted support for businesses as they grapple with skills shortages, the pandemic recovery and the rising complexity of the digital economy.
“This is a Budget that has a number of welcome measures for businesses, particularly after the very hard two years we have had,” Business NSW Regional Director, Paula Martin, said.
“For every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction, which is a major boost to staff productivity and retention.
“Small businesses will also be able to claim a bonus 20 per cent tax deduction for investments in digital technologies like cloud computing, cyber security and web design. This is particularly important for Central Coast businesses who are lagging in digital enablement maturity.”
Martin said the measures demonstrated an understanding of the pressures of running a small business in 2022.
“With the current severe labour shortages across all industries on the Central Coast, upskilling our local workforce, coupled with an increase in permanent skilled migration, should also be a priority for the Government so Central Coast businesses can take advantage of the post-COVID economic recovery,” she said.
“Prior to the onset of the pandemic, the shortage of skilled labour was already a problem for the Central Coast, particularly in our high value-added industries like food production and advanced manufacturing.
“After two years of closed borders and a lack of international students, that problem has only intensified. Labour shortages are now affecting every industry across the Coast and our hospitality, aged care and agriculture sectors have really felt the bite of no overseas workers.”
Martin said a new $2.8B investment system will see employers and apprentices benefit with cash incentives, supporting $5,000 payments to new apprentices and up to $15,000 in wage subsidies to employers.
“Fuel excise will be cut in half for the next six months, meaning the cost of filling up a tank of petrol or diesel will reduce, which will be applauded by many small businesses, particularly where staff have to travel long distances across the Central Coast to get to work,” she said.
“Long overdue road infrastructure investment into Wyong will help facilitate the growth of the region’s north, encouraging residential and business growth. And faster rail will give our large commuter workforce of over 44,000 workers valuable time back to spend locally with their families and communities.”
Martin also applauded the extension of the popular Small Business instant asset write-off scheme to June 30, 2023, allowing businesses with a turnover of up to $50M to write off new assets.
“One-off cost-of-living tax offsets of $420 will see more money in the pockets of our local workers and many are expected to receive a one-off payment of $250 to assist cost-of-living pressures,” she said.
“We are hopeful that this Budget will feed through to greater consumer confidence. (It) is clearly aimed at putting more money back into the pockets of working Australians and providing support for small business owners.”
Source:
Media release, Mar 30
Business NSW Central Coast