Budget 2020: Energising Entrepreneurs

A statement by ACCI CEO James Pearson

Australian entrepreneurs will be energised by the unparalleled investment incentives announced in the Federal Budget tonight.

For people waiting for the right time to start a new business, or those who have suffered a loss of trade during COVID, three standout Budget measures represent a change in fortune.

The temporary tax incentives – full expensing and loss carry-back – coupled with the new JobMaker hiring credit will provide opportunities for businesses to invest, to grow and expand, as well as encouraging people with entrepreneurial aspirations to take the leap.

With more than 99 per cent of businesses able to write off the full value of any eligible asset purchased, coupled with the low cost of borrowing and the support of hiring credits, this is the right time to buy equipment and upgrade productivity, to hire an extra person to lift participation, and to take a risk and aim to achieve more in business.

The temporary loss carry-back will also provide support for established businesses who have borne the brunt of COVID, unlocking much-needed funds and providing immediate financial support.

And on the consumer front, confidence and demand need to be restored in order for businesses to want to invest. Bringing forward personal income tax cuts and extending the low and middle income tax offset are sensible measures to support this.

This is a Budget for business, new and old. It pulls two fundamental economic levers: productivity and participation.

However, it is clear the estimates are subject to significant uncertainty due to the magnitude and enduring impact of the COVID-19 shock.

To underpin economic growth and boost certainty, we will need to continue to lift interstate and international border restrictions to encourage people to move to where the jobs are, to bring in the talent that other countries will be competing for and increase travel for both business and leisure.