2018-19 Federal Budget round-up for WA employers

We’ve taken a look at the 2018-19 Budget handed down by the Treasurer on Tuesday, 8 May and summarised its impact on the staff hiring plans of businesses in WA.

Investment in apprenticeships via the Skilling Australians Fund

The Government is setting aside an additional $250 million for the Skilling Australians Fund to provide businesses with the skills needed to grow their business. The funding will go towards projects that support apprenticeships and traineeships.

Through the Skilling Australians Fund, an estimated $1.5 billion will be available from the Commonwealth for the ongoing Fund between 2017–18 to 2020–22, with matched funding from states and territories.

As part of the budget announcement, a new agreement will be offered to state and territory governments with an estimated $1.2 billion over four years to 30 June 2022, to help deliver more apprenticeship and other employment-focussed training.

As the budget documents explain, this new agreement is based on current SAF levy revenue estimate plus total additional funding of funding of AU$50 million per year over the four years from 2018-19, on a per capita basis, to provide certainty to the states and territories and support apprentices and trainees.

Upskilling mature-age workers

Along with the Skilling Australians Fund, the budget announcement included a $189.7 million investment over five years across a range of jobs and skills measures, including additional support for mature-age workers who are registered with a JobActive provider. A further $19.3 million is being made available over three years to help job seekers aged 45–70 adapt to the changing jobs market and transition into new roles.

Other impacts to business that impact employment

Infrastructure
The promise of massive infrastructure investment for road, rail, and project building could be a boon for small business by creating potential work for SMEs involved in construction, building and associated services. New infrastructure spending could provide further opportunities for many small businesses as more money is spent in areas where projects are being undertaken (e.g. food retailers, hospitality etc.). Longer-term benefits of new infrastructure for SMEs will also include improved access to retail and other services.

Tax
The Government has legislated tax cuts for around 3.3 million small and medium Australian businesses employing 6.8 million workers with annual turnover up to $50 million, as part of the Ten Year Enterprise Tax Plan.

The Plan has also increased the unincorporated small business tax discount rate from 5 per cent to 8 per cent (up to a cap of $1,000). This rate will increase to 16 per cent by 2026‒27.

Enterprise Tax Plan will reduce the company tax rate to around the median of the OECD. With the aim to keep Australia competitive.

Contained within the budget announcement is the fact that internationally, we are at risk of falling behind. Australia’s high business taxes has potential to become a drag on investment. Comparatively almost every other OECD country has lowered its effective tax rate on investment. So the focus on tax is an important one

Next Steps

The Apprenticeship Community has long believed in the positive effects of our programs for employers and individuals. Apprenticeships and traineeships are a great vehicle for employers to train and develop new and existing staff. There are also various government financial incentives to assist employers with employing an apprentice or trainee.

If you would like to discuss how your business could benefit from our apprenticeship initiatives, please don’t hesitate to call us on 08 6165 3362.