How The Latest Budget Aims To Aid The Hospitality Industry !!
October 15th, 2020 / #hospitality, Blog, Clip member profile, COVID-19, Global Hospitality /
The past year has been quite a rollercoaster for the world economy. As COVID-19 infection reached to nearly every corner of the globe, entire hospitality industries have come to a grinding halt amid lockdowns and shutdown measures aimed at stomping out the budget.
While Australia has been successful in fighting the virus, the war has not been without casualties. Nearly every industry has been hit, and none more than the hospitality and restaurant industry. From empty stores and hotels to layoffs, hope for help for the struggling hospitality industry seemed out of reach for much of the year.
Fortunately, the 2020 budget has been released, and one of the major elements of the new budget is aimed at bringing a boost of stimulus to the hospitality industry.
The Importance Of The Budget For Hospitality Companies
The budget touches every corner of the Australian economy, and makes an impact on how the country is seen as a global economic leader. While the budget ranges across all industries and sectors, there are many parts of the budget that focus directly on hospitality.
This year’s budget contains a range of targeted investment measures that will bring aid to the Australian tourism and hospitality industry. While many will argue that different parts of the economic sector deserve targeted aid, the boost to recovery for tourism and hospitality will have a long-term impact on helping Australia recover in all areas of financial health.
To help us get a perspective on what the new budget will hold for tourism and hospitality, let’s take a closer look at what measures exist in the new budget:
Budget Tax Assistance
The new budget holds tax assistance for eligible businesses impacted by COVID-19, including temporary tax loss carry-back measures. These tax measures will offset losses against previous taxes paid, which will result in tax refunds for the new year.
The Australian government is also backing business investment through the introduction of a temporary full expensing initiative. Eligible businesses are eligible to deduct the full cost of eligible depreciating assets until 30 June 2022. Full expensing will stimulate investment from its announcement, supporting economic activity in 2020-21 and onwards until the measure concludes.
A new measure seeking to exempt employer-provided retraining activities from FBT is also being added. This measure will encourage businesses to retrain and redeploy their workers to new roles within the business.
Benefits For The Skilled Migrant Workforce
As the hospitality and tourism workforce has taken quite a hit from the pandemic, the budget has given priority allocation of key visa streams that is targeted at boosting Australia’s economic recovery. In helping Australia rise stronger from the pandemic’s losses, businesses will be encouraged to hire skilled sponsored hospitality workers from overseas with key budget-led incentives.
Not only are companies encouraged to increase their migrant workforce, but new integrity measures are being put in place to ensure that all visa programs are ‘fit for purpose’ – helping ensure that businesses find high-quality team members for their companies. There are also COVID-19 concessions currently available across visa categories that are aimed at helping assist foreign nationals find and secure work in the hospitality sector.
Increased Budget funds for Apprenticeships
Another key addition to the budget is the new JobMaker program – a new commitment by the Australian Government to help subsidise the wage bill of up to 100,000 apprentices and trainees in the hospitality sector. This means that the government is pledging $1.2 billion in aid to assist the hospitality and tourism sector to find and train new team members with high-quality apprenticeships. struggling hotels to arrest the declining rate of new workers.
Once apprentices exit the JobSeeker allowance, the JobMaker program will credit eligible hospitality businesses with up to $200 per week towards the salaries of people aged 16-35 who move forward in their work in the tourism sector. Titled the “‘Boosting Apprenticeship Commencements” pledge, this program will build on similar programs which reward businesses committed to maintaining employment for apprentices during the pandemic.
How Clipboard Is Helping Apprentices Take Advantage Of New Budget Measures
As a committed partner in helping hospitality companies and training institutes find purposeful and fulfilling work in the pandemic economy, Clipboard is working to ensure that apprentices find and land new opportunities across the industry. Apprentices are invited to create digital profiles on Clipboard.au to showcase their talents and connect with the industry to gain validation for new roles and career moves. As hospitality businesses are actively looking for skilled apprentices to work at their venues, Clipboard is connecting the dots to help employees and employees meet during difficult times.
We are all in this together, and we will all emerge from this season stronger – if we work together to imagine what the next chapter of the hospitality industry will look like! To learn more, and to see more great content like this about the pandemic’s impact on hospitality and tourism, head over to Clipboard online today!
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