While last year’s Federal Budget focused on getting through the hardships that COVID-19 was putting Australians through, the focus this time was instead on the country’s recovery moving forward.
Although things have started to look up in recent months, the hospitality industry was perhaps the worst affected from the coronavirus pandemic - and its effects continue to be felt even though it looks as though the worst of COVID is now finally behind us. Perhaps due to this, the 2021-22 Federal Budget which was announced recently included some great ways for businesses operating in the hospitality industry to benefit.
Here are all of the ways for you to take advantage of the 2021-22 Federal Budget for your hospitality-based business:
1. The instant asset write-off scheme has been extended
In last year’s budget, you probably recall the announcement that for businesses with a turnover of up to $5 billion, business assets purchased were able to be written off to their entire value immediately. This is now being extended by another 12 months and will encompass business-related assets purchased between last year’s Budget all the way through to 30 June 2023.
This means now is perhaps the ideal time to give your commercial equipment a refresh - give us a call now on 1300 787 288 to discuss equipment financing and you’ll be updating your workplace in no time at all!
There are of course caveats to this scheme, so be sure to check on the ATO website and speak with your accountant to confirm the specifics pertaining to your particular business.
2. Loss carry-back has been extended
If you’re operating in the hospitality industry, chances are you’ve experienced a drop in your profits due to the pandemic. If this is the case, you may be eligible to offset this profit reduction against tax your business paid in the 2018-19 financial year.
Essentially, if you’re able to prove that your business suffered profit loss during COVID, you’ll be able to get back some of the tax you paid in FY 2018-19.
3. JobTrainer/Boosting Apprenticeship Commencements expansion
Wage subsidies for businesses that take on new apprentices and trainees are being extended by another 12 months, now continuing until September 2022. This means you can bring new staff onboard to help meet the demand of your increasing operations but don’t have to overextend on your budget to do so.
4. Lift of 40-hour fortnightly working limit for student visa holders
It’s no secret that due to international borders being closed, hospitality businesses have been struggling to find enough skilled workers to get the job done. To combat this, the government is (temporarily) getting rid of the 40-hour fortnightly limit that student visa holders who are working within the hospitality and tourism industry would otherwise have to adhere to.
5. Pause ATO debt recovery
If the ATO is causing you headaches due to debt recovery actions, you’re in luck. This year’s Federal Budget includes an allocation of $1.5 million towards the Australian Small Business and Family Enterprise Ombudsman, and with an independent party incorporated in order to help small businesses that are being chased by the ATO for debt recovery purposes to pause these actions until each individual case has a verdict.
6. Tax relief for small breweries/distilleries
Do you run a small brewery or distillery? You may well be up for a pretty huge tax break. The 2021-22 Budget includes $255 million worth of tax relief for eligible small brewers and distillers. In fact, the Treasury estimates that this tax break initiative will deliver an average of $55,000 back into the pockets of small breweries and distilleries.
This will occur due to being able to - from July 1 - claim a full refund on any excise that is paid up to $350,000 per year; a significant increase from the existing 60% of paid excise up to $100,000 a year.
7. A focus on digital technologies
When ‘rona reared its ugly head, it was clear that the workaround for businesses had to be digitally driven. The government has indeed recognised this fact, and as such has allocated $10 million for small businesses to push towards tech-driven award compliance as well as just under $13 million to assist businesses to improve their digital capabilities.
Get approved for a business loan faster with us
Need to urgently hire additional staff to stay on top of things? Keen to either rejuvenate or completely replace some of your commercial equipment to help your hospitality business run more effectively? After one or more commercial vehicles to transport your products to clients? Whatever your business needs, we’re here to provide the expert financial assistance you’re after.
Our pool of lenders is massive, which means we can match your requirements with a finance package ideally. And after working with hospitality businesses for over 20 years, we’ve built up a solid reputation for delivering the best financial solutions time and again, and will do exactly the same for you.
So give the Stratton Finance team a call today on 1300 787 288 and find out what we can do for you. If you’d prefer, send us an online enquiry and you’ll hear from us shortly.
Disclaimer: Nothing in this article should be assumed as personal advice. You should consider whether the information is appropriate to your needs, and where appropriate, seek advice from a professional financial adviser.