Yesterday evening, Federal Treasurer Josh Frydenberg handed down the Budget for 2022.
Citing low unemployment rates and a strong economic recovery from the pandemic, Frydenberg announced the suite of measures the Government plans to invest in going forward - pending the party's re-election this year.
However, the Treasurer did recognise the rising cost of living pressures, which the Budget aims to address through a "temporary, targeted and responsible cost of living package."
In this article, Ragtrader will provide an overview of measures set to impact businesses.
To read the reactions of industry, click here.
Jobs, small business and skills
- Training: For every $100 a small/family business spends on training its employees, it will receive a $120 tax deduction.
- Digitisation: For every $100 a small/family business spends on digital technologies such as cloud computing, eInvoicing, cyber security and web design, it will receive a $120 tax deduction, up to $100,000 per year.
- Apprentices: To encourage more people to take up apprenticeships, the government will support the apprentice with a $5000 payment. An employer that takes on an apprentice can receive up to $15,000 in wage subsidies.
- Skills: The government will invest $3.7 billion in national skills reform, which will support an additional $800,000 training places.
- Jobs: The government will invest in new and expanded programs for employment for disadvantaged youth, Aboriginal and Torres Strait Islander Australians, mature aged and disabled Australians.
Cost of living
- Fuel: The government has cut the fuel excise in half to 22 cents per litre. This will be in place for six months, with the ACCC monitoring the retailers to ensure the savings are passed on in full to the consumer.
- Tax offset: 10 million low-and-middle income earners will be able to access a one-off Cost of Living tax-offset of $420. This means people receiving the low-and-middle income tax offset will get up to $1,500 and couples up to $3,000 from 1 July this year.
- Payment: 6 million pensioners, carers, veterans, job seekers, self-funded retirees and concession card holders will be able to access a one-off Cost of Living payment of $250.
Women's safety and economic security
- Paid parental leave: The goverment will expand the eligibility of Paid Parental Leave scheme, with more families able to access the 20 weeks of leave and choose how they share this time between carers. For the first time, single parents will be able to access the 20 weeks too.
- Violence against women: The government will invest $1.3 billion to help end violence against women. These funds will be put towards more frontline services, emergency accommodation and support to access legal and health services.
- Health: The Budget includes a new women’s health package which includes: stillbirth and miscarriage support, new endometriosis clinics and greater access to breast cancer and cervical cancer screenings.