Treasurer Josh Frydenberg handed down the Federal Budget Tuesday night, bringing favourable measures for hotels and hospitality and a nod from industry.
Frydenberg had promised the policy announcement would be “all about jobs” and employment stimulus dominated the measures outlined.
“There is no economic recovery without a jobs recovery,” said the Treasurer.
The hospitality sector will benefit from access to incentives to help businesses grow and rebound quickly after what has been an historically challenging year. This is in line with the employment push, into a sector able to create new positions instantly as demand requires, and the Australian Hotels Association welcomes the focus for a “crippled” industry.
“Our struggling hotels are ready, willing and able to employ staff,” says AHA CEO Stephen Ferguson. “They have COVIDSafe plans in place and take their health obligations extremely seriously.
“We welcome the emphasis on jobs in tonight’s Budget and look forward to playing our role in getting more Australians safely back to work.”
The FY21 budget included many and varied plans to help small-to-medium businesses. All those with annual turnover below $5 billion will be able to claim future losses made in 2021-22 (FY22) against profits they made during or since 2018-19 (FY18). This policy alone is expected to be available to about one million Australian companies.
The instant asset write-off has been expanded further, assisting businesses beginning to re-invest. Virtually all Australian businesses will be able to completely write off any new assets purchased and used by June 2022.
In terms of employment, the new $4 billion JobMaker hiring credit scheme is expected to pave the way for an additional 450,000 workers – with conditions. Employers will be subsidised $200 a week for hiring someone aged 16-29 or $100 a week for someone aged 30-35, but to be eligible the employee must have received JobSeeker, Youth Allowance or Parenting Payment before getting hired. The scheme is open to all businesses bar the big banks.
This comes in addition to the already announced new $1.2 billion wage subsidy program to incentivise hiring apprentices and trainees, which expects to provide for 100,000 new positions. This grants employers a 50 per cent subsidy on the wages of a new apprentice or trainee, up to $7,000 a quarter. The scheme will be in place until 30 September, 2021.
“The new apprentice incentive scheme will also enable employers to take on willing Australians and start them on a rewarding career path in necessary trades such as chefs and hotel managers,” notes Ferguson.
“The JobMaker Hiring Credit and direct wage subsidy schemes will also be massive boosts to a sector that has kept accruing mountains of debt during this crisis.”
The AHA reports the hospitality, tourism and accommodation sectors were amongst the worst hit by the pandemic, with lengthy shutdowns impacting more than 900,000 workers, and suggests these industries are well-equipped to lead the charge to recovery.
“This budget is crucial as it helps steer us out of the crisis. But the Federal Government can’t do it all. It’s a balancing act and the States and Territories need to ensure they have the appropriate safe trading schemes in place to allow us to do what we do best – create jobs and serve our customers in a safe environment.”
