Budget measures favour small & independent operators

The nation’s leading accommodation sector associations said new measures announced in last night’s federal budget will benefit small and independent hotels.

Tourism Accommodation Australia CEO and acting CEO of the Accommodation Association Michael Johnson said the Budget had some good news for smaller accommodation providers who have struggled through the pandemic.

“The Small Business Support instant asset write-off for small business with a turnover of less than $10m and the Small Business Energy Incentive will benefit these smaller and often independent operators,” said Johnson.

“These smaller businesses will be able to deduct an additional 20 percent of the cost of eligible depreciating assets that support electrification and more efficient use of energy.”

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Mr Johnson said the sector at large will also see some benefit from $15b in initiatives aimed at reducing the cost of living and funding to make child care more affordable.

“Accommodation Hotels nationwide have been struggling to recover since the pandemic and any increase in discretionary spending is a little boost for the sector,” he said.

“Also helping women return to the workforce quicker can only help with the chronic labour shortage we still face.”

Mr Johnson said the industry had concerns about the increase in VISA Application Charges at a time when bringing back working holidaymakers is crucial and how the increase to the Temporary Skilled Migration Income Threshold will affect recruiting key hospitality workers, such as cooks, particularly for regional and rural areas.

He said the reduction of the International Student Working hours will also be difficult for accommodation hotels.
“From July 1 international students’ work will be capped at 48 hours a fortnight, which will come at a difficult time for hotels trying to service many visitors for the FIFA Women’s World Cup.”