The federal government is targeting manufacturing businesses for federal support during a period of heightened global uncertainty.
More than $1 billion in new spending includes $200 for the regional accelerator program, on top of an initial $1.5 billion already committed to the Modern Manufacturing Initiative, Treasurer Josh Frydenberg said.
Some $750 million will entice private sector investment in large projects, while $53.9 million will help small and medium manufacturers adopt new technologies, scale up and potentially compete overseas.
Diversity within the industry is also being given importance, with the federal government allotting $4.7 million to support women to build a career in Australian manufacturing.
A budget of $38.6 million will also encourage more women to begin and complete apprenticeships in male-dominated trades such as plumbing and bricklaying.
Australian Chamber of Commerce and Industry CEO Andrew McKellar said the budget doesn’t address some challenges facing the economy, including a far-reaching agenda for tax reform, rebuilding business investment, supply chain capability and productivity.
“Presumably, these will have to wait until next year,” he said.
Providing $1.85 billion in cash flow support, the so-called GDP uplift rate that applies to PAYG income tax and GST instalments will be reduced to two per cent for the 2022/23 income year.
This will mean lower tax instalments for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.
Other measures include $10.4 million to overhaul the Payment Times Reporting Portal and Register to make it easier to see which of Australia’s largest organisations pay their invoices on time.
Some $8 million goes to the Australian Small Business and Family Enterprise Ombudsman so firms can access more advice.
Mental health support also gets a boost with $4.6 million to extend Beyond Blue’s NewAccess for Small Business Owners program.
Financial Counselling Australia’s Small Business Debt Helpline receives $2.1 million to help more small business owners receive financial advice.
But the ability to instantly write-off assets will end on June 30, 2023, despite calls for it to be made permanent.
with news from AAP