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From productivity measures to cost-of-living support, Australia’s budget has a number of implications for large businesses.
With consumer confidence at all-time low levels, there are concerns among businesses about what that means for spending.
Cost-of-living measures in the federal budget, including tax cuts and a halving of the fuel excise, could all provide the boost to confidence that businesses are looking for.
Equally, the measures aimed at increasing Australia’s productivity are welcome ones. These changes aim to attract and support more investment in Australia, and boost innovation.
The budget includes plans to reduce regulatory costs by around $A10 billion a year, by reducing red tape around tax compliance, project approvals, and trade - including the abolishment of numerous tariffs.
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Moves to reform research and development taxes are expected to provide a boost to technology and manufacturing groups. And incentives to boost AI development and adoption aim to help businesses across Australia take advantage of this revolutionary technology.
Other measures include a fuel security package, aimed at increasing Australia’s energy resilience, which includes moves to strengthen supply chains, improve trading relationships with our partners in the region, and improve freight resilience.
Also in the budget are changes to tax rules around electric vehicles, including a phased reduction in some of the current tax incentives to buy EVs, but balanced with increased investment in infrastructure for EV charging.
Other tax changes, including replacing the 50 per cent capital gains tax concession with an inflation-indexed adjustment, will be of interest to many investors, as will changes to limit negative gearing.
At ANZ, we’re committed to helping businesses navigate all manner of challenges and opportunities, and we look forward to hearing from you about how these changes will impact your business, and how we can help.
Philippa Campbell is Managing Director, Institutional Australia & PNG at ANZ
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