Tourism Accommodation Australia (TAA) have welcomed the release of tonight’s Federal Budget by Treasurer Josh Frydenberg MP, which contains a number of measures to support hotels and hospitality businesses to grow and create more jobs.
The key indicators contained in the Budget show Australia is in a strong economic position, with low unemployment and debt reduction strategies supporting growth within the nation’s private sector.
Expanded tax cuts and record infrastructure expenditure are strongly supported, along with the Government’s promise to eliminate Australia’s net debt by 2029/30.
Targeted measures that will support Australia’s hotel and hospitality industry include;
Increasing the instant asset write-off threshold from $25,000 to $30,000 is a measure that will be warmly welcomed by hospitality businesses, as is the announced expansion of the program to medium sized businesses with aggregated annual turnover of $10 million or more, but less than $50 million.
This highly successful initiative has been used effectively by businesses around the country to expand, improve efficiencies and boost sales.
2) Reforms to visa categories
Replacing the existing Regional Sponsored Migration Scheme (subclass 187) visa and the Skilled Regional (Provisional) visa (subclass 489) with the Skilled Work Regional (Provisional) visa and the Skilled Employer Sponsored Regional (Provisional) visa will permit skilled migrants to stay and work in regional Australia for a period of five years.
This will allow regional hospitality businesses to attract much-needed workers to areas where they have traditionally been hard to secure. The introduction of a new Permanent Residence visa for regional Australia from November 2022 is also strongly supported, as is the expansion of the Temporary Graduate (subclass 485) visa, allowing eligible international students to apply for an additional year on a second post-study work visa.
3) Export Market Development Grants
Increased Government funding of $60 million over three years for the Export Market Development Grants scheme will boost reimbursement levels of eligible export marketing expenditure for small and medium enterprise exporters. This will help support accommodation providers who make critical investments in marketing Australia to international visitors.
4) Delivering Skills for Today and Tomorrow
The creation of an additional 80,000 apprentices over five years in priority skills shortage areas through a new apprenticeship incentive will assist in addressing critical skill shortages in known problem areas in hospitality such as skilled chefs.
Flagged improvements to the Vocational Education and Training (VET) system through a $525.3 million investment are also to be applauded, helping ensure the VET sector is student focused and responsive to change.
TAA also welcomes the modest increase in Tourism Australia’s budget and a number of other targeted measures including additional support for the enhancement of iconic tourism infrastructure and the increased financial support for Australia’s live music industry.
Acting CEO of Tourism Accommodation Australia, Bradley Woods said hotels and hospitality businesses across Australia will receive immediate and lasting benefits from tonight’s announcements.
“There is much to be pleased about in this Budget and TAA congratulate the Treasurer and the Federal Government for measures that will see hotels and hospitality businesses grow, thrive and create more jobs,” Mr Woods said.
“The expansion of the Instant Asset write off scheme is excellent news for hotels and hospitality businesses across Australia – this is a practical, effective measure that makes it easier to purchase that critical piece of equipment that may have otherwise been out of reach.”
“We strongly support the attention that is being placed on improving the nation’s VET system, which helps produce those workers that are central to the long term viability and quality of Australia’s hotel and hospitality sector.”
“Hospitality businesses in regional areas have long grappled with the perennial issue of sourcing staff and tonight’s announcement in relational to regional visa reforms will certainly help alleviate this problem.”
Further information:David De Garis, 0412 577 567