Australia has outperformed all major advanced economies thanks to the government’s economic plan. Which has helped the country weather the worst economic shock since the pandemic hit.
The Australian economy is on the comeback trail, the labor market is healthy, and Australian health outcomes are the best in the world. This budget heralds and starts os the next phase in the country’s burgeoning economy.
Australia’s Leading Digital Economy
The digital economy in Australia is growing and flourishing. A thriving digital economy was critical to Australia’s resilience during COVID-19, and it will continue to be critical to future growth and prosperity.
Australia has continued to enthusiastically embrace digital technologies in 12 months since the Australian government launched the Digital Economy Strategy in budget 2021-22. In the face of pandemic challenges and uncertainties, increase digital adoption has aided businesses in continuing to operate and grow, as well as Australians connected.
The pandemic has accelerated Australia’s adoption of digital technologies, with many using the internet for healthcare, work, education and socialising. As a result of the private sector’s adapting and innovation, nearly nine out of ten Australian businesses have adopted the new technologies. In 2020-21, there were 1.4 billion online interactions with the government, an increase of 126 million from the previous year.
Digital innovation is driving Australia’s recovery and future prosperity through job growth in the tech sector and record venture capital investment. The potential benefits of digitalisation to the Australian economy over the next decade are estimated to be $315 billion, with the potential to create up to a quarter-million new jobs by 2025. 2 As a result of digital technology, the way Australians work, learn, and engage is changing.
Australia’s Plan for Stronger Future
- Creating more jobs and aiming for a 4 percent employment rate.
- Health, education, women’s safety and other critical services are receiving unprecedented funding.
- Providing Australians with cost-of-living relief and assisting small businesses.
Small Business is the Engine Room of Economy
Lower tax installments will help 2.3 million taxpayers, including small businesses, improve their cash flow.
The deregulation agenda of the Australian government aims to make it easier for businesses to grow and run smoothly. When fully implemented, it is expected to generate deregulation benefits of more than $21 billion over 10 years.
- Support for Small Businesses: The government is committed to assisting small businesses in meeting their legal workplace obligation. A $5.6 million investment in a dedicated small business unit at the Fair Work Commission will benefit small businesses by saving them time, money, and stress. The government will provide $8 million to the Australian Small Business and Family Enterprise Ombudsman to work with service providers to provide business planning, capacity building, and financial literacy.
- Technology Investment Boost: To encourage small businesses to go digital, the government is investing $1.0 billion in a new technology investment boost plan. Small businesses with large revenues of less than $50 million will be able to deduct a bonus of 20% of the cost of expenses and depreciating assets related to digital adoption. This includes mobile payment devices, cyber security systems, and cloud-based service subscriptions. The tax credit will be applied to eligible expenses of up to $100,000 per year incurred between Budget night and June 30, 2023.
- Training Boost: Small businesses can also benefit from the new 20 percent bonus deduction for eligible external training courses for employee upskilling. The skill and training boost will provide $550 million in tax relief for expenditures.
Support Women in Pursuing Career Opportunities in the Tech Sector
Respect, dignity, choice and equality of opportunity are fundamental to the safety, health and economic security of women in Australia.
As a result of the government’s economic plans to increase female participation, more women are working and the gender pay gap is closing. The government is committing to providing more options and flexibility for women in the tech world and encouraging them to develop business and leadership skills.
The government will provide $3.9 million over two years as a part of the digital economy strategy to assist women in pursuing career opportunities in the tech world. Around 60% of the 1.9 million jobs created since 2013 have gone to women, thanks to policies implemented by the government. Women’s participation in the tech sector is at an all-time high.
The Women’s budget statement for 2022-23 includes new measures to ensure that women are even better prepared for future jobs. $56.2 million in funding is being provided to help women transition into the thriving tech industry and info manufacturing jobs, as well as the development of entrepreneurial skills.
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