The 2022-23 federal budget provides targeted support for businesses grappling with the pressures of skills shortages, bouncing back from the pandemic and the rising complexity of the digital economy, the region's peak business organisation Business Hunter says.
Business Hunter CEO Bob Hawes welcomed several business relief measures included in the budget, which was handed down on Tuesday night, including:
- Tax relief for businesses - a change to the rate used to calculate quarterly 'pay as you go' instalments and GST instalments to 2 per cent for the 2022-23 financial year, which would mean instalments would be much lower than under the current 10 per cent rate that applies in the current formula. The budget also contained a six-month halving of the fuel excise which provide much-needed relief to small business particularly, as well as the freight and logistics operators located regionally.
- Further funding for apprentices and trainees - $6.5 billion nationally to support an extra 35,000 apprentices and trainees into a job by extending the starting date of new jobs commencing to June 30, 2021 from the end of March for increased wage subsidies.
- Tax deductions for businesses that invest in technology and skills - Businesses turning over less than $50 million will be able to access a 20 per cent deduction for investing in technologies like cloud computing, e-Invoicing, cyber security and web design, as well as the cost of external training for their employees.
"It is great that there is some targeted business relief included in this year's budget after close to three years of business and consumer confidence bottoming out," Mr Hawes said.
"This is one of the key performance indicators we have been raising with the government since the end of the Delta outbreak last November - address the cost of doing business and boost consumer confidence to spend their lockdown dollars with local businesses.
"Measures to cut red tape, incentivise uptake of digital business infrastructure and business practices, boosting skills attraction and tax incentives are all welcome for business."
The business chamber said the budget included some positive signals for emerging and existing Hunter industries, with boosts to defence and energy, infrastructure connectivity, and medical technologies funding and expenditure.
Mr Hawes said the Hunter was in a strong position to capitalise on key funding in these industries, as a region ready to drive enormous economic growth for the region, the state and the nation.
"We have strong presence and businesses established in these industries and we're keen that infrastructure connectivity and growth of defence, energy and med tech industries have featured," he said.
"This will build business confidence to continue to invest and build jobs in these markets."
In a statement, Business Hunter said it was pleased that the budget appeared to support hydrogen export readiness, which would allow the Port of Newcastle and the wider Hunter region to prepare for future diversified energy markets.
"We know that there is around $40 billion in commercial interest in our hydrogen hubs and that our region's export capability in hydrogen has been recognised and reviewed closely by global partners," Mr Hawes said.
"This announcement supports the port to play a big part in the region's hydrogen development and export advancements and takes advantage of our region's valuable export infrastructure assets.
"It also sends a vital signal that commercial interest in energy diversification in our region is a safe bet. The hydrogen hub will make a strong contribution to the growth of our region and will lead to jobs and economic growth."
