7th October, 2020
The Federal Budget includes a host of measures to stimulate all levels of the economy, including manufacturing, infrastructure and the regions.
It isn’t just the Government’s new write-off provisions or tax cuts that have businesses happy tonight. The Government has introduced a raft of measures for manufacturing to the tune of $1.3 billion — along with benefits for regional areas as well.
Infrastructure is also getting a huge push in the Federal Budget, with more than $14 billion in new and accelerated projects.
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In one of the more significant changes brought on by the pandemic, the Australian Government is now considering how to revive its manufacturing industry in a funding splash announced in the week prior to the Budget announcement.
In it, the plan outlines $1.3 billion in manufacturing to target six key areas:
The “Modern Manufacturing” plan focuses on growth. In particular, the Government says the plan is to invest in projects that “improve collaboration between businesses, researchers and investors”.
“This plan is built on the JobMaker platform of enabling our manufacturing businesses to be globally competitive through cheaper and more reliable energy,” Treasurer Josh Frydenberg said in his Budget speech.
A big part of this push is the Manufacturing Modernisation Fund, which (among other things) aims to assist shovel-ready investments in innovative technologies and processes.
If you’re a forward-thinking manufacturer, there’s a lot to like here.
The 10-year infrastructure pipeline contained in the Budget may be nothing surprising, but the support for more than 100,000 jobs will have a very real impact.
Among the $14 billion in new spending (predicted to create 40,000 jobs), projects include:
The Federal Government is also spending $1 billion to help local councils make immediate upgrades to local roads, footpaths and street lighting.
Hit hard by the bushfires and flooding long before COVID-19 arrived on our shores, Australia’s regions have been doing it tough for a while and their recovery is also critical to the entire economy’s future.
Among the Budget initiatives, projects for regional Australians include:
The emphasis on supply chain resilience and $107 million Budget allocation to match will provide manufacturing businesses in securing their operations.
The uptake of digital tools to enhance connectivity, accuracy and productivity play a fundamental role in supply chain and general business resiliency, and so digitising the business platform should be priority number one for the successful scale of the manufacturing industry.
By way of example, the MYOB Advanced Manufacturing Edition provides features specifically designed for the industry to allow accurate pricing, cost management and financial tracking.
While these projects may not have the universal impact of tax cuts, or the Instant Asset Write-off, they will provide real businesses with real support, and create real jobs for the future — which is what our national recovery needs.
Join MYOB’s CEO Greg Ellis, ASBFEO Kate Carnell and SmartCompany’s editor-in-chief Peter Fray for a ‘2020 Budget Wrap’ webinar at 1.30pm on Thursday, 8 October to discuss how the budget will impact your business. Register today to book your place.