It has been a busy week for many Australian businesses as details of the 2022 Australian Federal Budget have just been announced.
In this article, we will be outlining some of the biggest talking points from the recent budget announcement and get some commentary from several local businesses to hear their thoughts on the matter.
What Is in the Federal Budget?
Here are some key highlights from the 2022 Federal Budget plan:
- $250 cost-of-living payment to be paid in April 2022 to six million eligible Australians. Individuals that are eligible for this payment will not have to apply as they will be sent out automatically.
- 120% skill and training deduction available for small businesses to help promote digital adoption. This is intended to help increase the productivity of small businesses by training new employees and upskilling existing workers.
- Updates to the PAYG instalment system that allows for calculations to occur in real-time. This means businesses are able to receive an automatic refund on tax paid if the business is running on a substantial loss.
What Do Australian Businesses Think About the Budget?
The Federal Budget announcement has affected a number of businesses around Australia. We had the opportunity to hear what some business owners and managers had to say about this announcement.
Here is what they had to say:
“We welcome the government to continue to focus on investing in the child care sector to help alleviate the growing cost of living pressures. We see investing in child care as a win-win policy for children, the workforce and the economy.” – Winfrey Dai (Director at Raising Stars)
“It is good that the government is providing extra support in this budget for first home buyers. That said, first time home buyers must be attentive when applying for a home loan. Start with checking your credit score and credit report so you’re aware of what the banks and lenders will see as these may be considered in your application. After all, a rejected home loan application or multiple applications can impact your credit score and financial profile” – Lloyd Smith (General Manager at Clearscore)
“This scheme will see the deposit required to buy a home reduced to just 5% – and the government guaranteeing the other 15%. This will be of great assistance to young people trying to get into market regional areas and single parents. The major benefit is it will allow those borrowers who participate to avoid paying tens of thousands of dollars in lenders’ mortgage insurance. We know that many Australians pay LMI due to borrowers having a deposit of less than 20%. With the average house price in Australia’s capital cities exceeding $1 million, it’s great to see the Morrison Government helping keep the Australian dream of owning a home alive.” – Carl Hammerschmidt (CEO of Joust)
“We welcome anything that supports affordability. High petrol prices are just one of many factors squeezing consumers like the limited supply and soaring prices of vehicles.” – Shaun Janks (Co-Founder & Chief at DingGo)
“During the pandemic, revenue has been incredibly volatile with significant declines during lockdowns followed by steep increases afterwards. As a small business, Larsen Jewellery will benefit from the ability to calculate PAYG instalments based on financial performance, and thereby avoid overpayments during the down periods. In addition, like many family-owned businesses, Larsen Jewellery is owned through a discretionary trust and will therefore benefit from being able to lodge its income tax returns electronically. As a small and growing Australian business, any assistance that we receive in the federal budget is greatly appreciated after what has been two very difficult years.” – Lars Larsen (Director of Larsen Jewellery)
What’s your opinion on the budget? Please share your thoughts in the comments section below.