The 2019-20 pre-election Federal Budget will put more money in the pockets of middle-income Australians, which will flow through to businesses and the wider economy, create jobs through apprenticeships in areas of skills shortages and help owners grow their assets through a boost to the instant asset write-off scheme.
Business SA welcomes tax cuts for people earning up to $126,000, ensuring it will put more money into people’s pockets, which will flow through to the entire Australian economy.
Increasing the instant asset write-off scheme from $25,000 to $30,000, combined with lifting the threshold to $50 million, will assist businesses with cash-flow and help to improve productivity through better and more efficient equipment.
Business SA Executive Director of Industry and Government Engagement, Anthony Penney, said there would be widespread relief for employers, including those who might be considering taking on an apprentice in areas of skills shortages.
“Providing an incentive of $8,000 to take on an apprentice – which doubles the current $4,000 incentive under the Additional Identified Skills Shortage Payment – could encourage an owner to take on new staff when they were questioning whether they could afford the increased wages in an area of need,” Mr Penney said.
“Anything which stimulates employment growth and gives an apprentice an entry into the workplace helps the wider economy, and providing them with a $2000 payment will help them meet the cost of buying their tools and other equipment when they need it most.
“The reality though, is that there are skills shortages that need to be addressed now, and increasing visa fees by 5.4%, on top of the previously announced cut to the permanent migration program of 30,000 places to 160,000 will hamper business growth for some.”
Mr Penney commended the Federal Government’s ambition to deliver the first surplus in 12 years, but cautioned this was still a forecast and the proof would be in the pudding
“Unfortunately South Australia will lose an additional $187 million in GST in 2019-20 which will put further pressure on the public sector to drive efficiencies,” he said. “We welcome the State Government’s start with the new State Productivity Commission and Infrastructure SA.”
The previously announced $165m Adelaide City Deal will support projects at Lot Fourteen, which will stimulate jobs growth and help start-ups looking for a foothold in central Adelaide.
“This pre-election surplus budget will build skills, boost businesses and put more money in people’s pockets,” Mr Penney said. “We hope increased job opportunities and any extra spending will then flow through the economy, stimulating further employment growth, and improving conditions for businesses of all sizes and across every industry.”
For further information or to arrange an interview please contact Verity Edwards on 0412 678 942.
2 April 2019