Business Tips

What does the 2022-23 Budget mean for hospitality?

1/4/2022
By
Kiarne Steer

Let’s do a quick recap - the 2021-22 budget centred around the country’s recovery from the pandemic and kick-starting the economy. The 2022-23 edition is primed to further help promote economic growth. This includes investing in skilled workers and small businesses.

But how much of the budget is allocated to hospitality businesses and how can we benefit directly from it? Sit back and keep scrolling to learn more as there’s a lot to unpack. As we share the facts about the budget and what it means for hospo in Australia.

Budget breakdown:

  • Fuel relief
  • Taking care of business 
  • Jobs and training 

Fuel relief

It’s not cheap to fill up at the moment and with the majority of venues still recovering from COVID staffing shortages and increases in produce prices due to the severe weather events experienced in NSW and SEQ. The Government has announced a new temporary, targeted and responsible cost of the living package.

  • Temporary fuel excise relief - The Government will reduce fuel excise by 50 per cent for 6 months. This will see excise on petrol and diesel cut from 44.2 cents per litre to 22.1 cents per litre. 

Over the next two weeks, as petrol prices decrease, we can likely expect to see suppliers adjust their minimum order quantities (MOQ) or remove delivery charges if previously applied to cover the cost of fuel. 

On a more personal note, you may be eligible for a one-off Cost of Living Tax Offset from 1 July. Depending upon your personal circumstances and eligibility the offset can reduce your tax payable to zero and is not a one-off payment. 

Taking care of business

While sales are growing, staffing is not and it’s not making being a venue owner any easier. The budget has proposed several specific changes, we’ve highlighted some below. 

  1. PAYG changes

Small businesses will now only need to pay a 2% ‘uplift’ rate through the 2022-23 financial year rather than the current 10%. This means that you’ll have more money in your back pocket to spend here and now. 

  1. Access to free mental health services

The government has increased the funding to extend Beyond Blue's NewAccess for Small Business Owners program. Meaning you can access free mental health support over the next two years. 

  1. Alcohol Excise Changes 

The government has taken action to support the business growth in Australia’s alcoholic beverage sector by streamlining the admin and customs process as well as licensing requirements. This will hopefully lead to cheaper alcohol prices from wholesale suppliers. 

Jobs and training

As businesses work toward pre-pandemic trading levels, there is added pressure on the services sector, especially hospitality to fill the vacant roles of skilled workers. The government has introduced a number of new apprenticeship programmes and changes to current schemes including; 

  • Boosting Apprenticeship Commencement (BAC) subsidy will be extended to the end of the financial year and JobTrainer expansion was also announced. This would provide any eligible businesses to apply for further subsidies for taking on new apprentices and trainees. 
  • Small businesses will be able to claim an extra 20% deduction of the cost of any external training courses by registered providers face-to-face or online. This means that you may be eligible to receive a $120 tax deduction on every $100 spent training staff – up to $100,000 per year till 2024. 
  • The budget also outlines means to help support skilled workers from overseas with extra Working Holiday Maker visas available for prospective backpackers to help tackle staff shortages. 

Overall the Federal Budget will greatly help small businesses including hospitality groups and supporters.

After more information?

  • See the full 2022-23 Federal Budget here
  • Remember to speak to your accountant or a trusted financial professional to confirm your eligibility for any subsidies and programmes 
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