As with all budgets, the latest Federal Budget is a mixed bag. There are some measures which could prove positive for industry businesses but measures which drive any further contraction to the economy may be bad news for a still-soft manufacturing sector.

Spruiking the Federal Budget, the Government cited the extension of the Instant Asset Write-off for assets up to $20K for small businesses (with an aggregated turnover of <$10M), the small business energy incentive, the $3 billion Energy Bill Relief Fund and new cyber security support measures as among the measures that are set to boost business. 

The big question is whether the measures extended to low income-earners, JobSeeker recipients, renters and small businesses will be enough to halt the evident contraction in the economy and provide relief to local manufacturers under pressure from a strong Aussie dollar, rising energy prices, staffing shortages and high labour costs.

Business groups think not. AiGroup’s Performance of Manufacturing Index dropping 3.1 points to 44.8 in April, well below the 50 point level which separates expansion from contraction. Innes Willox, Chief Executive, says while the Budget is ‘fiscally prudent’ it ‘offers little to kickstart the structural reforms needed to boost productivity, investment, innovation, job creation and sustainable real incomes growth.”

There are positives, however, particularly relating to training. 

A $3.7 billion National Skills Agreement will commence on 1 July 2024, to ensure better access to Vocational Education and Training (VET). Budget measures also include a new support model to improve workforce diversity, retention and completion rates while engaging women in traditionally male-dominated apprenticeships - relevant across the print, sign and wider graphics sector. 

This latter measure is complemented by a tripling of trade apprenticeships for women by 2030 and a doubling of the number of women in apprentice and trainee roles on government construction projects (which can include signage).

More information about the budget can be found on the Federal Government’s Budget 2023-24 website.