The South Australian Business Chamber’s CEO Andrew Kay acknowledges Federal Government efforts to reduce inflation, through an overall modest budget with a small suite of measures that will have impacts on business in South Australia.
“A Hydrogen Headstart Program worth $2 billion, a startup and SME Industry Growth Program worth $392.4 million, energy bill savings worth up to $650 for eligible businesses and tax breaks totalling $310 million for electrification of heating and cooling systems, installing batteries and upgrading to high-efficiency electrical goods are among the highlights for business in this budget.
“At a time of record low unemployment in the state, measures announced to increase women’s participation in the workforce are very welcome”, said Mr Kay.
TOP POINTS FOR SOUTH AUSTRALIAN BUSINESSES
Hydrogen Headstart Program
A significant fund worth $2 billion to scale up hydrogen industry development in Whyalla, Gladstone, and Wollongong.
SA note: Investment in eastern state projects reduces our competitive advantage.
Industry Growth Program
A $392.4 million investment over 4 years from 2023 – 24 (and $68.2 million per year ongoing) to establish the Industry Growth Program supporting SMEs and startups to commercialise their ideas.
SA note: South Australia has a thriving ecosystem of new and SME businesses. Government funding facilitation of expertise through growth programs will encourage businesses to innovate and expand.
Energy relief and tax breaks
A small business energy incentive tax break to help small and medium businesses electrify and save on their energy bills providing $310 million in relief, supporting up to 3.8 million businesses to invest in electrifying their heating and cooling systems, installing batteries and upgrading to high-efficiency electrical goods.
Businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024.
Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
Similar to some households, one million businesses will receive a one-off reduction of $650 on their power bills.
SA note: This is much-needed relief given South Australia’s current energy costs.
Enhancing Women’s workforce participation
Initiatives will encourage stronger women’s workforce participation, including expanded access to paid parental leave, a $72.4 million investment in training and retention measures for the childcare workforce, and changes to deliver more affordable childcare for 1.2 million families.
SA note: With the second lowest participation rates in the country, record low unemployment in the state, and ongoing skills and labour shortages, we encourage any measure that will increase participation and enable women with children to return to the workforce.
The South Australian Business Chamber CEO Andrew Kay is available on Wednesday 10 May 2023 for interviews regarding the Federal Budget.
The South Australian Business Chamber will provide a more comprehensive summary of the 2023 – 2024 Federal Budget on Thursday through its weekly newsletter, the South Australian Business Chamber Today.
MEDIA CONTACT
Anthony Caldwell, Manager – Marketing, Media, Communications
Phone – 0421 508 075
Email – anthony.caldwell@business-sa.com
