VOTE SEEKING BUDGET HAS LITTLE FOR PRINT BUSINESSES

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The federal government’s final budget before the election left industry severely underwhelmed, containing little of meaning for printers, with industry leaders calling it a missed opportunity.

Election budget: Treasurer Josh Frydenberg

Josh Frydenberg’s budget was aimed almost entirely at the upcoming election, with various one-off sweetners for voters the main thrust, along with some low-level help for small business. There was little of strategic or long-term importance.

The budget saw increased funding for some apprentices, increased tax deductions for business investment in digital technology such as laptops and cyber security, and increased deductions for external staff training.

However that was about it for business. There was no move to increase migration to address the rapidly growing labour and skill shortages in the industry, nothing about increased TAFE funding, and to the intense disappointment of print, there was no move to instigate a buy Australia scheme for taxpayer funded bodies, including for the government itself.

The $150,000 instant asset write down was not mentioned, meaning it is unlikely to be extended beyond its current time limit, which is the 2023 tax year. Interestingly this year’s PacPrint straddles two tax years, meaning, if a printer plays it right, it could get an instant deduction of two lots of $150,000 at the show.

The investment in digital technology for small business is broad, it covers everything from buying laptops to updating websites, subscriptions to cloud based services. The 120c in the dollar deduction is for businesses with a turnover of less than $50m, for a limit up to $100,000 a year.

The 120 per cent external training deduction is also broadly couched, pretty much everything will be eligible, as long as it is offsite and offers some tangible upskilling.

Migration remains capped at 160,000, but the government says net overseas migration will turn from the negative 89,000 last year to positive 235,000 in four years’ time, including Australians coming back.

Apprentice wage subsidies have been increased, but only for those in priority occupations, which does not include any form of print

Businesses that employ mature aged people who have disabilities will likewise be able to access wage subsidies.

Snapshot:

  • $500m for new Regional Accelerator Stream of the Modern Manufacturing Initiative;
  • $200m for new Regional Accelerator Stream of the Supply Chain Resilience Initiative;
  • additional $83.1m for the $190m Recycling Modernisation Fund and the National Waste Policy Action Plan:
    - $60.4m to develop new plastics recycling technology and advanced recycling solutions, and
  • - $18.2m recycling education campaign and ‘ReMade in Australia’ scheme;
  • Additional $17.9bn was announced for infrastructure projects as part of the government’s 10-year infrastructure pipeline:
    - $3.1bn for two intermodal terminals in Melbourne, designed to get freight off trucks on roads and onto trains on rails;
  • $557m for small businesses to deduct an additional 20% of expenses on training courses;
  • $1bn to support small businesses to adopt new digital technology in their processes;
  • $954m to support a new Australian Apprenticeships Incentive Scheme for priority occupations; and
  • $52.8m to deliver an initiative – ReBoot – which will support up to 5000 disadvantaged people develop skills and provide a pathway to employment.
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