Business Chamber Queensland: Business energy relief has come at the right time
Measures in the Federal Budget to soften the cost of doing business come as Queensland businesses rank energy costs as having the most significant economic impact since 2018.
One-off rebates of up to $650 are available for one million small businesses nationally to offset power bills while the Small Business Energy Incentive tax break is designed to encourage businesses to make meaningful progress to reduce their carbon footprint and invest in efficiency upgrades.
Business Chamber Queensland CEO Heidi Cooper said macroeconomic challenges meant in the December 2022 quarter Queensland businesses ranked energy costs as having the most significant economic impact since 2018.
“Macroeconomic issues and ongoing high business operating costs were impacting businesses’ long-term confidence in the future of the state and national economies despite steady business performance, “Ms Cooper said.
“This immediate energy bill relief has come at the right time.
“We asked the business community in Queensland what would most impact business growth opportunities and more than half (58%) said investment in affordable and reliable energy supply would have a significant or very significant impact their future growth opportunities.
“The business community welcomed short term energy bill relief and incentives to improve energy efficiency with their operations but there is still work to do for more sustainable investment in energy affordability and reliability.”
We will continue to work with the Australian Chamber of Commerce and Industry to advocate for a long-term support to expand incentives for all businesses to encourage them to invest and reduce the impact of high business operating costs.
Australian Chamber of Commerce and Industry CEO Andrew McKellar said the budget had unlocked much-needed funds to support small and family businesses as they were battered by rising interest rates, soaring energy costs and a cooling Australian economy.
“Queensland’s businesses have not been immune from the surging power prices experienced across Australia’s east coast. The $650 energy bill rebates provided in this budget will provide small businesses with welcome breathing space at a time when they need it most,” Mr McKellar said.
“Tax incentives for capital investments and energy efficiency upgrades also come at a crucial time. This additional assistance will help ensure Queensland’s 459,000 small businesses can grow, support their communities, and create new jobs.”
Business Chamber Queensland and Australian Chamber of Commerce and Industry will host the 2023 Federal Budget Business Briefing with the Hon Dr Jim Chalmers MP on May 12, 2023 at the Royal International Convention Centre.
The keynote address from the Federal Treasurer will outline his 2023 budget strategy and the implications for Queensland business.
This event is supported by Australian Retirement Trust, BDO and Queensland University of Technology.
Federal Budget business outcomes
Workforce – skills and training
- A further 300,000 TAFE and vocational education training places to become fee-free.
- $3.7b for a new 5-year National Skills Agreement to commence from 1 January 2024.
- $54.3m over five years for a non-financial support model to improve apprenticeship completion rates.
- $5m in grant to make worksite more inclusive.
Workforce participation
- Incentives to further encourage stronger women’s workforce participation, through expanded access to paid parental leave.
- $72.4 million investment to assist training and retention measures in the childcare sector.
Energy and sustainability
- The Small Business Energy Incentive will help small and medium businesses electrify and save on energy bills through tax relief.
- Support for up to 3.8 million businesses to make investments like electrifying heating and cooling systems, installing batteries and upgrading to high-efficiency electrical goods.
- Businesses with annual turnover of less than $50 million will have access to a 20% tax deduction for eligible assets supporting electrification and more efficient use of energy.
- Powering Australia Industry Growth Centre will support Australian businesses looking to manufacture, commercialise and adopt renewable technologies.
- Funds towards the climate transition:
- $2bn for the establishment of a new Hydrogen head start
- $1.3bn on Powering the regions fund (allocated from previous budget) to support decarbonisation of existing industries
Productive measures
- The $20,000 instant asset write-off will free cash-flow and support small businesses to invest and grow.
- Eligible small businesses will have further cashflow relief with quarterly tax instalments for GST and income tax in 2023–24 halved.
- $23.4 million for small businesses to build their resilience to cyber security risks by training in-house cyber wardens.
- The Industry Growth Program will support small to medium-sized businesses and startups develop new products and services to grow their operations.
- Further investment in the Buy Australian Plan to improve the approach to Government procurement and use the Government’s buying power to help industry grow by competing for and winning more government contracts.