SmallBusiness.wa.gov.au
The Small Business Specialists
Phone: 131 BIZ
Website: www.smallbusiness.wa.gov.au
The State and Federal Governments have both recently released their budgets for the 2011-12 financial year. As both governments are keen to maintain a focus on financial stability into the future, it appears that there are fewer opportunities for business to take advantage of the stimulus type funding that has been provided in recent years. However, there are a few elements of both budgets that are relevant to small business.
The Federal Government announced that the Entrepreneurs’ Tax Offset (ETO) will be abolished from 2012-13. Instead, the Government will allow small businesses to claim up to $5,000 as an immediate deduction on the purchase of a new motor vehicle from the 2012-13 financial year.
The current method for determining the taxable value of car fringe benefits will be reformed by replacing the current tiered rate system with a single rate of 20 per cent that applies regardless of distance travelled.
An income tax exemption for certain clean up and recovery grants paid to small businesses and primary producers will be provided, for grants that relate to flooding that occurred on or after 29 November 2010 (this includes the Carnarvon floods). The disaster income recovery subsidy payments made to employees and small business owners affected by the floods will also be exempt from income tax.
The Government will reduce the gross domestic product (GDP) adjustment factor for Pay As You Go (PAYG) instalment taxpayers who use the GDP adjustment method. In 2011-12 this will be set at 4 per cent, rather than 8 per cent as per the previous method.
With effect from 1 July 2012, businesses will be required to report annually on payments made to contractors in the building and construction industry. The reporting regime will require businesses to report information that they should already collect under existing tax arrangements. However, this requirement could impose an additional administrative burden on small businesses to ensure they comply with regulatory requirements.
The Federal Government recognises the challenges businesses are expected to face over the next few years in attracting and retaining skilled labour and will introduce a number of measures to assist in this area.
Under the National Workforce Development Fund, $588 million has been allocated over four years, aimed at delivering 130,000 new training places during this period. Training places will be co-ordinated with specific industries, which will work alongside a new $25 million National Workforce and Productivity Agency, to be established from 1 July 2012.
A further $100 million will be provided over four years to assist industry in developing and implementing strategies to help apprentices fulfil their obligations sooner than expected.
The Australian Apprenticeship mentoring services has been allocated $101.4 million over four years to help increase apprenticeship retention and completion rates and to assist people in pursuing the most suitable trade.
More information on employing apprentices is available at the Australian Apprenticeships website.
The number of places in the 2011-12 Migration Program will be increased from 168,700 in 2010 11 to 185,000. This includes 125,850 skill stream places.
The Federal Government has allocated $4.8 million over four years to implement initiatives that encourage people with the relevant skills to migrate to regional Australia. The Migration Program will specify the number of places allocated to the Regional Sponsored Migration Scheme component, making 16,000 places available under the Employer Sponsored Program (a 60 per cent increase).
Visa applications made under the Regional Sponsored Migration Scheme will be given the highest priority and the pathway to permanent residency from Temporary Business (Long Stay) (Subclass 457) visa holders will be streamlined and simplified.
More information on migration is available at 2011-12 Migration Program.pdf
The Federal Government has allocated $7.1 million over four years to continue the Small Business Support Line service, provided by the federal Department of Innovation, Industry, Science and Research.
The Federal Government will provide $94.6 million over four years to provide wage subsidies to businesses that employ the long term-unemployed. The subsidy will be set at the average rate of the Newstart Allowance and will be paid over six months, commencing from 1 January 2012.
More information can be found at Department of Human Services.
The Federal Government has allocated $104.2 million over five years to support the development of emerging Australian renewable energy technology, especially in the areas of geothermal energy and ocean energy technology.
The State Budget provides additional funding in 2011-12 for the following SBDC initiatives:
The economic recovery is expected to fuel increasing demand for skilled labour across a number of sectors of the State’s economy. To address this demand, the State Budget provides a focus on skills training through the following:
For more information about employing apprentices and trainees in Western Australia visit the State Government’s Apprenticentre.
The 2011-12 State Government Asset Investment Program will be the largest infrastructure program ever delivered in Western Australia, with small businesses expected to benefit from contracting and supply opportunities arising from the capital works expenditure. In 2011-12, a total of $7.6 billion has been allocated for infrastructure across the State, including:
To find out more information about projects in your area, contact your Regional Chamber of Commerce and Industry or Department of Regional Development and Lands
The State Government’s infrastructure spending gives opportunities for small businesses to provide and supply goods and services in metropolitan and regional areas. Businesses will be able to tender either directly to government or via larger contractors. To find out more information on Government tendering opportunities visit Tenders WA.
The State Budget includes significant funding to support regional development initiatives as part of the Royalties for Regions program. Small businesses are expected to benefit from contracting and supply opportunities arising from the funding allocation. In 2011-12, a total of $1.2 billion from the Royalties for Regions Fund has been allocated to regional development initiatives, including:
To find out more information about projects in your area, contact your Regional Chamber of Commerce and Industry or Department of Regional Development and Lands.
In an effort to reduce delays in planning approvals, the Government has allocated $716,000 per annum over four years for the administration of Development Assessment Panels. These panels have been established throughout Western Australia to improve decision making in development applications at local, regional and State levels, which is designed to reduce the amount of time planning processes take. This is expected to benefit many small business involved in the building and construction industry.
To find out more about Development Panels, contact: Planning WA - Development Assessment Panels.