Business NSW Central Coast has welcomed cost-of-living measures in the Federal Budget, but says there is more to do to address the primary cost of doing business.
Business NSW Executive Director Regional NSW and Visitor Economy Paula Martin said a $20,000 instant asset write-off, energy bill relief and strong migration levels will give businesses some relief from the storm of high interest rates, rapid inflation and energy price rises.
She said Treasurer Jim Chalmers should be commended for delivering a projected Budget surplus of $4.2B for 2022-23 – a sizeable revision from the deficit of $36.9 billion estimated in the last budget.
“This budget shows there has been a responsible approach taken to economic management to control spending and target relief for small businesses,” Martin said.
“While delivering the first surplus in 15 years is something to be commended, there will be much work required in the years ahead to control the deficit with gross debt forecast to hit $1T ($1,000B) by 2025-26.”
Martin said key budget measures which would impact businesses include a new $20,000 instant asset write-off for small business allowing those with aggregated annual turnover of less than $10M to immediately deduct eligible depreciating assets costing less than $20,000 and the introduction of practical measures to guard small businesses against cyber threats through a $23.4M program to help them train in-house cyber wardens.
She said almost all of NSW’s 840,000-plus small and medium businesses could be eligible for up to $20,000 in tax relief under the Small Business Energy Incentive and one million small businesses nationwide will get power bill rebates through the jointly funded Energy Bill Relief Fund with NSW businesses to receive $650 in relief from July 1.
She also welcomed 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors, a new focus on rent relief and unlocking additional funding to build one million new affordable homes and $2B in initiatives to simplify the interface between businesses and government services.
“Businesses are in desperate need of a break and these measures will provide welcome support for business hit hard by costs pressures,” Martin said.
“Business NSW welcomes the Energy Price Relief Plan, which will offer $650 for one million eligible small business to save on their energy bill.
“In the October Budget, the Federal Government announced that it would increase the 2022/23 permanent Migration Program planning level from 160,000 to 195,000.
“It has been revised down to 190,000 – which will still assist businesses being hit by an acute skills shortage.
“The Government will provide additional funding of $54.3M over five years from 2022–23 to introduce what it is calling a ‘new non-financial support model for Australian Apprenticeships from 1 July 2024’.
“Business NSW will work closely with government to ensure enterprises are still able to access the workers and skills they need.
“There is a cost-of-living crisis which is being addressed, but there is a cost-of-doing-business crisis that needs more attention over the coming 12 months.”
Source:
Business NSW Central Coast