Budget 2014: the good and the bad

The Abbott government’s first Budget brings good news for tradies and small businesses, and bad news for the solar industry.

The increased infrastructure spending, tax cut and trade support initiatives will support business growth but the scrapping of ARENA will negatively impact the solar industry. “The government promised the Australian people an additional million solar roofs by 2020. The Budget contains no funding to make this happen. A Million Solar Roofs is a mirage,” said John Grimes, CEO, Australian Solar Council.

The proposed scrapping of the Australian Renewable Energy Agency (ARENA) in last night’s Federal Budget will be a backwards step for Australia’s drive to develop innovative new renewable energy technologies, and for Australian and international companies who have been working to bring investment to Australia, said the Clean Energy Council.

“To improve business opportunities, we are cutting company tax by 1.5 percentage points for around 800,000 businesses. We are abolishing the carbon tax and we are abolishing the mining tax,” Treasurer Joe Hockey told the parliament. The government will also provide concessional Trade Support Loans of up to $20,000 over a four-year apprenticeship.

“The Trade Support Loans Scheme is a positive step, enabling apprentices to access financial support over the course of their apprenticeship.  We particularly commend the completion incentive built into the loan structure. The cessation of the Tools for Your Trade Allowance may detract from this initiative.  Further reform of apprenticeship arrangements putting employers in the driving seat are welcome,” said Ai Group Chief Executive Innes Willox.

The Ai Group has also welcomed the establishment of the Industry Skills Fund ($476m over four years). “This fund will help declutter skills initiatives.  We are, however, concerned with the cessation of the longstanding Workplace English Language and Literacy (WELL) program.  Currently, over four million working Australians do not have adequate literacy and numeracy skills for the modern economy.  We must ensure that developing these vital skills does not lose priority. In the roll-up of other programs into this one streamlined and potentially more efficient fund, it is important that priorities are not diluted.”