While there’s nothing in treasurer’s Josh Frydenburg’s budget aimed specifically at the food and beverage sector, there is a lot in there for all companies, especially the small- to medium-sized entities that make up a large cadre of the industry.
As well as giving tax breaks to lower and middle income earners, there is also encouragement for employers to hire or retrain staff, especially young people.
While there is concern about the amount of debt it will be creating, it is tempered by the need for the government to kick-start the economy, especially in Victoria, which has borne the brunt of restrictions bought about by the COVID-19 pandemic.
In a Nutshell
There will be several positive outcomes for the food and beverage sector including:
- The government will be handing out $1.5 billion in grants in many manufacturing sectors including food and beverage.
- A large number of businesses within the food and beverage industry have turnovers of between $10 million and $50 million, and they will be eligible to claim a maximum of 10 tax breaks. Also certain fringe benefit taxes (FBT) will be scrapped on everyday used items such as laptops, phones, and even car parking.
- Most Australian businesses are being allowed to write off the complete value of assets that are eligible up until June 2022
- If you are thinking of making staff redundant because they no longer have the skill set needed, companies will be exempt from FBT if they retrain workers.
- Wage subsidies are available for those companies who higher unemployed younger people and give people apprenticeships.