Small and medium-sized businesses will benefit from last night’s federal budget, according to the Illawarra Business Chamber.
Treasurer Josh Frydenberg promised tax cuts, an increased threshold for asset write-offs, and thousands of employment opportunities.
The write-off threshold will increase to $30,000 and will allow small to medium businesses to deduct assets which are purchased under this cover.
Illawarra Business Chamber Executive Director Adam Zarth welcomed the changes and said they were a win for smaller businesses.
“There’s measures here to allow businesses to expand, that’s essentially what the instant asset write-off boils down to,” Mr Zarth said.
“Businesses can expand through buying additional assets that allow them to do business more effectively.”
Treasurer Frydenberg also announced a $525 million plan to create 80,000 new apprenticeships.
The five-year plan would provide employers with an $8,000 incentive payment to recruit new apprentices, and the apprentices would a $2,000 payment.
“This will impact our region because we do have workforce shortages across key sectors,” Mr Zarth said.
“Construction, retail, some office work like call centres, as well as hospitality and aged care.”
Wollongong Lord Mayor Gordon Bradbery said the budget was about more than handouts and write-offs.
“Hopefully this will translate into employment opportunities,” he said.
“The point of this exercise is to stimulate the economy.”
Mayor Bradbery said Australia would benefit from a stronger manufacturing and business enterprises.
He said Australia needed to create national and local businesses that did not rely on commodities to be the framework of the economy.
