Federal budget to assist small accommodation businesses
Tax cuts for small businesses and initiatives to boost youth employment announced in the federal budget have received support from the accommodation industry.
The Accommodation Association of Australia’s CEO, Richard Munro, said: “The federal government is to be commended for lowering the company tax rate to 27.5 percent for businesses with a turnover of less than $10 million.”
“In the accommodation industry, this will see increased returns for owner-operated motels, among other accommodation businesses, many of which are located in regional Australia.
“Australia should ultimately be aiming for a company tax rate of 25 percent to ensure our global competitiveness is maintained and to promote additional investment.
“Our industry is also pleased the instant write-off for equipment purchases of up to $20,000, which was to expire next year, will be extended and be available to businesses earning up to $10 million a year.
“Typically, these are not measures that will attract big headlines but they have the potential to make a real difference to the bottom line of small businesses in Australia’s accommodation industry.”
Regarding the youth employment initiative, “Youth Jobs PaTH (prepare, trial, hire)”, the Accommodation Association is anticipating it will lift workforce participation in the industry.
“The Accommodation Association – through the Accommodation Association Academy – plans to actively encourage our members to make use of the new youth internship incentives,” Mr Munro said.
“The up-front payment of $1000 for a business to host an intern – together with additional incentives for job-seekers – will assist in generating employment in the accommodation industry.
“We look forward to more positive announcements for tourism – from both the government and opposition – during the upcoming election campaign.”
The association was also hoping for change to the proposed backpacker tax, but this hasn’t been announced yet. The tax has been suspended; however, so the controversial tax concessions removal on overseas workers will not apply until January 1.
The budget also included some changes to border access that may encourage the tourism sector. The government said it will raise revenue of $1.5 million over four years from 2016‑17 by introducing trial visa arrangements, including a user‑pays visa fast‑track service for nationals from India and the United Arab Emirates, and a three-year multiple entry visa for “low immigration risk” nationals from India, Thailand, Vietnam and Chile.
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