2022 Federal Budget: How does it impact you?
The 2022-23 Federal Budget was released on the 29 March 2022. While every budget is critically important with wide-spreading implications across many industries and systems of support across the country, this year’s budget also comes just before the next federal election.
How does this federal budget impact you? As expected, there are a lot of promises presented in the 2022 Federal Budget regarding a solid workforce to get post-pandemic Australia back to work and back on track economically.
At 1300apprentice, our attention is focused primarily on what these new insights mean for employers, apprentices and businesses.
Impact of federal budget on employers
$13.3 billion has been invested into skills in demand apprenticeships and traineeships where there has been a national shortage since 2013. The Government is set to invest $2.8 billion more over 5 years from the 2021-22 period to support both apprentices and employees.
The Australian Apprenticeships Incentives Program lets employers receive a wage subsidy or other financial incentives for the apprentices they take on that meet the criteria. Treasurer Josh Frydenberg announced that up to $15,000 in wage subsidies are available for employers who take on eligible apprentices.
Payment incentives are available at commencement, retention for school-based apprentices, re-commencement and completion of the apprenticeship. Additionally, this scheme also grants financial support to employers for apprenticeships that fall within other particular disadvantaged circumstances.
- Up to $1500 for taking on a new apprentice worker
- $1000 for rural and regional apprentices that fall under the skills shortage
- $1,500 for drought-affected employers taking on a new worker or certificate ii apprentice within the equity criteria
- $750 for employers taking on a new worker, or a disadvantaged apprentice aged 45+ undertaking a certificate ii or higher
- $750 for employers commencing a school-based apprentice
Impact of federal budget on businesses
The 2022 Federal Budget will give small businesses relief through continued tax cuts this year, from 2021, totalling over $21 billion. $2.6 billion from this number will be distributed through 2022-23.
The company tax rate for small businesses was reduced from 30% in 2013-14 down to 25% in the 2021-22 budget. Also continuing from changes in the budget last year is a higher tax discount for small unincorporated businesses to 16 percent from 5 percent, from 2015-16.
Additionally, businesses with an annual turnover lower than $5 billion will be able to write off assets in taxes instantly; this scheme will also be extended to the 30th of June 2023. Businesses that meet this criterion will also be able to offset their losses to get a tax refund.
One of the most notable changes announced by the Treasurer was that small businesses could expect a $120 tax deduction for every $100 spent on training staff through an external educator.
Impact of federal budget on apprentices
In addition to further investment towards the Australian Apprenticeships Incentives Program that encourages employers to take on apprentices, some of the money invested will also go to the apprentices themselves.
The 2022 Federal Budget has stated that an additional 2,500 in-training support places will be going towards eligible young apprentices. The budget also will be expanding access to trade support loans, for all priority occupations.
Apprentices on the Australian Apprenticeship Priority List can also expect to get $5000 in Apprentice Training Support Payments or $1,250 every 6 months for 2 years.
Impact of federal budget on job seekers
The Government is working on releasing a new online platform called Workforce Australia on 1 July 2022 that will combine all Government employment, skills programs and initiatives for job seekers in one place. This platform includes a Points Based Activation System that will allow job seekers to meet their job search obligations with more flexibility; instead of just applying for jobs, they can complete different tasks or activities each month such as job interviews, paid work, study and training.
Impact of federal budget on women in the workforce
More money is being allocated to a longer paid parental leave (20 weeks) to help aid women in the workforce. This year’s budget will also be investing $9.4 million towards the Future Women’s Job Academy to help support women going into leadership positions. $31 million will also be invested into initiatives to encourage women to progress in their careers in sports.
The Workplace Gender Equality Agency will also be receiving $18.5 million from the Federal Budget to encourage equality across the workplace.
Want to learn more about how you can take advantage of the latest changes to the 2022-23 Federal Budget to benefit as an apprentice, employer or job seeker? Get in touch with our excellent team members at 1300apprentice, who are always happy to help you.
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