Budget brings grants and subsidy support for businesses

BudgetGrants

30 March 2022

Treasurer Josh Frydenberg delivered the Australian Federal Budget on 29 March 2022. Being his fourth Budget speech, the Treasurer announced several initiatives designed to provide relief to businesses through government grants or subsidies.

Apprenticeship wage subsidy extended

On skills training, Mr Frydenberg said, “During this pandemic, we have already invested $13 billion in skills and training. With a record 220,000 Australians now in a trade apprenticeship. The highest level since records began in 1963.

“Tonight, we go further, with a new $2.8 billion investment to increase take up and completion rates. Providing $5,000 payments to new apprentices. And up to $15,000 in wage subsidies for employers who take them on… Skilling Australians is part of our plan for a stronger future.”

Much to the relief of business owners who were keen to hire apprentices before the close date of March 31 2022, the Budget confirms the Government's earlier announcement to extend the Boosting Apprenticeship Commencement (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies by three months to 30 June 2022.

The Budget also includes funding over five years to introduce a new Australian Apprenticeships Incentive System from 1 July 2022 as further support to employers and apprentices in "priority occupations".

Earlier, Prime Minister Scott Morrison said the extension of the successful BAC and CAC wage subsidies would build on the record number of Australians currently in trades training.

Any employer who takes on an apprentice or trainee up until 30 June 2022 can gain access to:

  • 50 percent of the eligible Australian Apprentice’s wages in the first year, capped at a maximum payment value of $7,000 per quarter per Australian Apprentice,

  • 10 percent of the eligible Australian Apprentice’s wages in the second year, capped at a maximum payment value of $1,500 per quarter per Australian Apprentice, and

  • 5 percent of the eligible Australian Apprentice’s wages in the third year, capped at a maximum payment value of $750 per quarter per Australian Apprentice.

This extension takes the amount spent on apprentices since the pandemic took hold to $5.5 billion.

If you need more hands on-deck but were always hesitant to hire staff due to the high wage cost, now is your chance to avail yourself of this 50% wage subsidy. This is the third and final extension before the scheme closes on the 30 June 2022.

Flood and disaster support

New South Wales and South East Queensland have faced extreme flooding events over the last few months and the Treasurer announced funding to support flood affected communities.

“Mr Speaker, our thoughts are with those who have lost loved ones, homes and businesses in the catastrophic floods across New South Wales and SouthEast Queensland. Nothing I say can overcome the personal pain and loss of so many Australians. We will stand with these communities and help them rebuild.

“Already, over one million disaster payments have been made, total support to families, farmers, small businesses, local governments and their communities is expected to exceed $6 billion. It will deliver hope, work and the prospect of returning to a better life.”

Numerous small businesses, not-for-profit organisations and primary producers including our clients and staff across New South Wales and Queensland have been and continue to be impacted by severe flooding and storms resulting in loss of lives, property, equipment, motor vehicles, stock and the like. Our biggest priority at Findex is to ensure the safety of our people and to support our clients and communities affected by the devastating floods.

Export Market Development Grant (EMDG)

Applicants can receive up to 50% of costs incurred towards eligible export promotion expenses such as IP or trademark registration, website development, export marketing consultants and exhibiting at overseas events like trade fairs.

This budget has announced an additional $80 million to the EMDG across the next four years. A further $157.9 million of funding has been added from the Regional Accelerator Program.

Boosting Female Founders Initiative

The Government’s Boosting Female Founders Initiative ($52.2 million over five years to 2024-25) helps to address several barriers faced by women entrepreneurs. It provides grants of between $25,000 and $480,000 to majority women-owned and led start-ups to help them scale their businesses into domestic and global markets.

As part of the successful Boosting Female Founders Initiative, the Government will procure a specialist education provider to develop and operate small and intensive business-oriented online financial capability workshops for around 100 female entrepreneurs.

COVID-19 business grants designated non-assessable non-exempt income

The Government has extended the measure which enables payments from certain State and Territory COVID-19 business support programs to be made non-assessable non-exempt (NANE) for income tax purposes until 30 June 2022. This measure was originally announced on 13 September 2020.

Consistent with this, the Government has made the following State and Territory grant programs eligible for this treatment since the 2021-22 Mid-Year Economic and Fiscal Outlook (MYEFO):

  • New South Wales Accommodation Support Grant.

  • New South Wales Commercial Landlord Hardship Grant.

  • New South Wales Performing Arts Relaunch Package.

  • New South Wales Festival Relaunch Package.

  • New South Wales 2022 Small Business Support Program.

  • Queensland 2021 COVID-19 Business Support Grant.

  • South Australia COVID-19 Tourism and Hospitality Support Grant.

  • South Australia COVID-19 Business Hardship Grant.

Date of effect - The changes are part of an ongoing series of announcements which continue to have effect until 30 June 2022 (subject to further extension).

Check out the full coveragefrom the Federal Budget 2022-23, which will continue to develop throughout the week as new insights and video content are published.

Source: https://budget.gov.au/