Easier to see a doctor for free, billions for education and childcare, small business help
Purse strings are tightening as small businesses struggles. The federal government says it’s coming to the rescue. Here’s what on offer.
Geelong
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A Geelong businessman – who operates 100 holiday rental properties – has revealed trade is at its lowest point in the past five years as purse strings tighten across the region.
Jon Metrikas, owner of The Electric Hotel on Ryrie St and Geelong Short Stays, said he was determined to leverage some of the 220,500 skilled migrants expected to move to Australia in the next financial year – outlined in Tuesday’s federal budget – as he looks to expand his operation into the hospitality sector.
The Geelong business owner said the federal government’s electricity bill relief, which is offered to small business with a turnover of less than $50m, was unlikely to offer “significant savings” because of exorbitantly high electricity bills.
The budget gives small businesses owners an extra 20 per cent tax reduction for spending supporting energy efficiency and electrification of their operations.
Mr Metrikas said he saved about $4000 a year on utility bills at a property where he used gas to offset electricity costs.
He said both properties used a similar level of energy per year.
“We are looking at changing the electricity-only property over to gas,” he said.
The local entrepreneur said he hoped to open The Baltic cafe and bar, in the former Moo Mouth cafe space on Little Malop St this year, but said finding tradespeople to complete a fit-out was proving to be difficult.
Mr Metrikas said more federal funding to support apprenticeships was needed.
The 2023-24 federal budget allocates $54.3m to improve apprenticeship completion rates, and a further $8.6m this year to introduce national targets for apprentices.
Mr Metrikas said more assistance was needed to help businesses find staff.
“Staff is a crucial thing,” he said. “We still haven’t seen overseas people and students coming and working.
“We would really like to employ older people – we should give (pensioners) the opportunity to earn a little bit more money without penalty, and losing some of their pension.”
The budget did not include any changes to how earning an income impacts the pension.
But Treasurer Jim Chalmers did deliver an extra $92.10 a fortnight to about 52,000 single long-term Jobseeker recipients aged 55 to 59 as part of his second budget.
The Treasurer also confirmed a temporary increase to the instant asset write-off asset threshold to $20,000 for businesses with a turnover under $10m annually
BUDGET MEASURES REVEALED
It will be easier to get a bulk-billed doctor’s appointment, single parents will get a welfare boost and would-be homeowners, and renters, will be given more hand outs as a result of the federal budget released on Tuesday, Labor says.
But the Geelong region hasn’t received any new funding for region-specific projects or initiatives as it faces a growth rate that’s among the fastest in the country, and has pockets of disadvantage that were recently named the state’s worst.
Treasurer Jim Chalmers said hip pocket relief would come from a $3.5bn move to triple the bulk-billing incentive immediately, a deduction of up to $500 from power bills next financial year for more than five million low-income households and a $40 per fortnight increase to income support payments including JobSeeker, Youth Allowance and Austudy.
The maximum rate of Commonwealth Rent Assistance will be increased by 15 per cent, benefiting around 300,000 people in regional Australia.
First-home buyers will be able to team up with siblings and friends to get a deposit together under changes to the government’s scheme.
Australians who have not owned a property for at least 10 years, permanent residents, and single legal guardians of children will get access to the scheme for the first time.
The single parenting payment will be available to single parents until their youngest child turns 14, a increase from the previous cut off at eight-years old.
The move is expected to provide 57,000 families with an extra $176.90 per fortnight.
About $5bn will be pumped into childcare to reduce fees for 1.2m families from July.
Mr Chalmers said because of government policies electricity price increases were expected to be about 25 percentage points less than projected, and 16 percentage points less for gas.
He said the budget provided cost of living relief, broadened opportunity, and laid a foundation for growth by embracing clean energy, and investing in people, skills, technology and small business.
“These are the foundations on which our government is building a stronger economy and a fairer society. With greater security in a time of economic uncertainty. More opportunities in more parts of our country.
“In all our decisions, we seek to strike a considered, methodical balance.”
The federal government’s contribution to the Geelong City Deal, that will in part deliver the Geelong Convention and Exhibition Centre, remains consistent with $30.2m due to be spent in 2022-23, $65m in 2023-24 and $60.8m in 2024-25.
Curiously, the federal budget says the cost of the Commonwealth Games to be held in regional Victoria in 2026 was not “quantifiable” at this stage.
The budget also allocates $72.4m to support early childhood education and develop those in care professions.
A further $9.3m will be added to a national plan to address the teacher workforce to increase the number of people which choose to become teachers, and attempt to retain existing teachers.
Meanwhile the budget sets aside $590m to stop violence against women and children, will abolish the “punitive” ParentsNext program and put cash into designing a voluntary system to “genuinely” support mothers preparing for work.
The budget allocates $1.9bn to initiatives for Aboriginal and Torres Strait Islander people and communities.
Why a typical family could be worse off
Victorian Liberal Senator Sarah Henderson claimed: “Under this Albanese Labor Government, a typical Australian family with kids will be around $25,000 worse off under Labor.”
She said the budget confirmed the cost of living continues to go up; gas and electricity bills continue to skyrocket; real wages have not grown; inflation remains stubbornly high; unemployment will rise; and taxes will rise for some Australians.
“This budget fails hard-working Australians right at a time when they needed a plan to address inflation and the cost of living crisis. In fact, the Government’s Economic and Fiscal Strategy removes addressing inflation as a priority.”
Ms Henderson said the budget lacked investment in the Geelong region.
“This is a budget which divides Australians and treats regional Victorians as second class citizens,” Ms Henderson said.
“Where is the substantial investment that the people of Geelong deserve?
“Labor cannot spend its way out of its cost of living crisis. Its budget does nothing to help local residents get ahead.
“We needed a budget that reduces inflation and reins in spending to combat the cost of living crisis facing all Australians. Instead, this budget makes life harder for Australians.
Labor: This is a fair, responsible budget that delivers
Corio MP and Deputy Prime Minister Richard Marles said the budget contained “measures focused on helping Geelong households deal with the cost of living.”
“We know families are still doing it tough which is why in this budget, we are providing targeted assistance to household budgets, be it accessing healthcare, paying your energy bills, or accessing child care,” Mr Marles, who is also Defence Minister, said.
Mr Marles did not outline any specific Geelong region projects or initiatives in his reaction to the budget.
“This is a fair budget which provides targeted assistance to the Geelong community - if you’re a JobSeeker, a single parent or a business owner, Labor’s budget is about creating opportunities for more people and the benefits will be felt right across the Geelong region.”
Corangamite MP Libby Coker said Labor had already delivered cheaper medicines, cheaper child care and passed legislation to improve paid parental leave
“In this budget, we continue to focus on the cost of living in a responsible way which doesn’t add to inflation,” Ms Coker said.
“For those small and medium businesses across Corangamite, there are important tax incentives to save energy and to save on their energy bills.
“We will be investing more than $730 million over four years to lift the NDIA’s capability, capacity and systems. This is welcome news for the NDIA but importantly, is better support for participants.”
Labor said young people would be given a helping hand via the budget from a grant opportunity of $15.2m to support the establishment of Y Careers agency.
The funding is expected to support up to 15,000 young people to pursue meaningful careers and provide employers with access to talent within priority industries, with a focus on the care economy.
It comes as the government says the youth unemployment rate remains “stubbornly high” and industries in the care economy are struggling to find enough skilled workers.
Mr Chalmers said the government’s policies would return inflation to the RBA’s target of two to three per cent in 2024–25.
“Our policies to ease the pressure on households will take ¾ of a percentage point off inflation in 2023–24.
“Which is expected to fall from 6 per cent this year to 3 ¼ per cent next year, returning to the RBA’s target band in 2024–25.”
Other budget measures include $64.1m to reduce the backlog of compensation claims made by veterans.
Smokers will be the losers in the budget with tobacco tax lifted by 5 per cent for 3 years.
Large multinational companies operating in Australia will have to factor in a minimum 15 per cent global and domestic tax.
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