By Parker McKenzie
The Federal Government announced several new initiatives to support small businesses in the 2022 Federal Budget, including tax deductions for training employees and digital economy technology investments.
In his budget speech on Tuesday 29 March, Federal Treasurer Josh Frydenberg announced small businesses would be eligible to receive up to $100,000 in support from the schemes.
“Starting tonight for every $100 a small business spends on training their employees, they will get a $120 tax deduction, helping them become more productive and competitive,” he said.
“We’re also backing small businesses that are embracing the digital revolution. From tonight, every $100 these small businesses spend on digital economy technologies like cloud computing, E-invoicing, cyber security and web design, they all get a $120 tax deduction.”
The treasurer spruiked the Liberal-National Coalition Government’s $13 billion investment in skills and training for apprentices during the speech and laid out their plans for future wage subsidies.
“A record 220,000 Australians now in a trade apprenticeship, the highest level since records began back in 1963,” he said.
“Tonight we go further, with a $2.8 billion investment to increase the take up and completion rate for apprentices providing $5,000 payments to new apprentices and up to $15,000 in wage subsidies for employers who take them on.”
The new incentive scheme will replace the Boosting Apprenticeship commencement scheme, which ends on 30 June and offered employers a 50 per cent subsidy for apprentice wages up to $28,000 a year.
The new scheme offers lower-wage subsidies and is restricted in the occupations it is available for.
A smaller payment of $3,500 is available for occupations deemed “non-priority”, however, the list of priority and non-priority occupations has yet to be released.
925 residents from Belgrave, Selby, Emerald, Cockatoo, Ferntree Gully, Monbulk, Silvan, Mount Dandenong, Upwey, Tecoma, Boronia and Olinda commenced new apprenticeships from January until September in 2021, more than double the 435 who commenced apprenticeships in the same time period throughout 2020. 680 apprentices commenced employment in the same time period in 2019, prior to the Covid-19 pandemic.
