Federal Budget 2022: Raft of payments, tax breaks for small businesses, apprentices
Billions of dollars will be splashed on small businesses and apprentices under new measures announced in tonight’s Federal Budget.
New apprentices and their employers will be eligible for hefty payments, particularly for those in “priority” industries.
This will come courtesy of a $1.3 billion investment over the five years from 2021-2022, including $954 million for a new Australian Apprenticeships Incentive System.
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From July 1, apprentices employed in what the government described as “priority industries”, the list of which would be updated annually based on national demand, will be eligible for up to $5000 over two years.
Their employers will be able to seek up to $15,000 in wage subsidies.
“As we move into the second phase, the Australian Apprenticeships Incentive System will shift to supporting occupations in demand or skills need, with a hiring incentive of up to $4000 to be provided for employers in priority occupations, as well as a new Australian Apprentices Training Support Payment of up to $3000 paid directly to apprentices in priority occupations,” Employment Minister Stuart Robert said.
A $3.7 billion investment the National Skills Agreement was included in this year’s budget as part of a $12 billion four-year plan.
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“It will reduce the number of students facing unreasonably high fees and improve access to free and low-fee training for priority students and courses,” Mr Robert said.
It could “potentially” open up to an extra 800,000 training places.
Other initiatives include $38.6 million to encourage more women to undertake apprenticeships in male-dominated trades like “plumbing and bricklaying”.
The money will go towards guaranteed placings, providing in-training support, and mentoring services.
A $3.9 million program will also support more women in taking up roles in the digital technology sector.
Tax breaks for small business
Further tax breaks will be available for small businesses - those with an aggregated annual turnover of less than $50 million - that continue to train their workers in new skills.
From 7.30pm AEDT today, when the Budget was handed down, until June 30, 2024, small businesses will be able to deduct an extra 20 per cent of expenditure on external training courses.
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In effect, this will grant businesses a $120 tax break for every $100 spent on training.
There are conditions – the courses must be provided to employees in Australia or online and delivered by training entities registered in Australia.
In-house or on-the-job training will also not be eligible.
There’s also an incentive for small businesses looking to boost their use of digital tools.
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From 7.30pm AEDT, until June 30, 2023, they will get the same 20 per cent additional tax deduction on business expenses and depreciating assets that support their adoption of digital workplace items such as portable payment devices, cyber security systems, or cloud subscriptions.
The deductions will apply to up to $100,000 of expenditure per year.
Altogether, the government has forecast the new deductions will bring a collective $1.6 billion of tax relief to small businesses.
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