From stay-at-home parents to foreign countries, a number of sectors have been hit by the new budget, including our very own industry – tourism.
But here’s the good news, it’s not all bad.
Yesterday, the Australian Government unveiled the 2015/16 Federal Budget and as with every budget, there are some winners and there are some losers.
The tourism sector is sitting somewhere in the middle, and here is why:
Winners: Small business operators
At the heart of the entire travel industry are the smaller operators.
And this year, small businesses are the biggest winners in the new budget.
They have been given a package of tax breaks, red tape reductions and concessions that equal around $5.5 billion.
Additionally, smaller enterprises are now able to claim unlimited tax deductions for items under $20,000 – this means if you’re looking to buy new pieces for the business, you’ll get a generous return come tax time.
Winners: Aviation
The government is awarding some $26.2 million over the next four years for new international airports.
The funding will go to gateways in Townsville and the Sunshine Coast to establish border clearance services to operate overseas flights.
Winners: The Top End
Around $5 billion has been set aside for loans to private companies that want to build major projects in the Northern Australia region.
This could potentially include new rail lines and ports. The money is designed to help establish business links with overseas neighbours such as Indonesia and Papua New Guinea.
It could also result in better tourism relations.
Winners: Tourism Australia
Tourism Australia’s 2015/16 budget has increased to $137.3 million – up from $129.75 million the previous year.
This will be used on a small staffing increase and a continuation of the roll-out of the ‘There’s nothing like Australia’ campaign across all major markets, along with new funding for the Restaurant Australia marketing campaign.
There will also be a strong push on Business Events marketing to promote Australia as a business events destination targeting New Zealand, the USA and China.
Tourism Accommodation Australia’s Acting CEO Carol Giuseppi said this increase is ‘imperative’ if the country is to reap benefits particularly with the lower Australian dollar.
“Australia is experiencing its largest hotel expansion in two decades, and with the end of the mining boom, it is imperative that tourism and business events are targeted to create new demand.”
Carol Giuseppi, Tourism Accommodation Australia Acting CEO
Losers: Backpackers
Image: Songchai W/Shutterstock
The Government has decided to change the tax residency rules that apply to travellers on working holiday visas.
They will no longer receive the same $18,000 tax-free threshold as everyone else.
The tax-free threshold has been completely stripped, which means they will be required to pay tax on every dollar they earn in Australia.
The Tourism and Transport Forum Chief Executive Officer, Margy Osmond said this is a step backwards and would make working travellers think twice about coming to Australia.
“[It] will damage Australia’s international reputation.”
Margy Osmond, The Tourism and Transport Forum Chief Executive Officer
“Australia has long been a favourite destination for young people from around the world who live, work and travel here for up to two years, and who spend on average more than $13,000 during their stay.