There was some good news, and some not so good news for the food and beverage industry in yesterday's budget, including cuts to company taxes and a new foreign worker levy.
Yesterday, the federal government reaffirmed its commitment to cut the corporate tax rate to increase competitiveness, attract investment, and protect jobs from being taken overseas.
Also, a popular scheme that allows small businesses to write off purchases up $20,000 instantly for tax purposes will be extended for another year.
The budget also included $8.4 billion for the 1,700 kilometre land freight rail network between Melbourne and Brisbane, and a $1 billion funding over seven years for the National Landcare Program. The Live export industry will receive $8.3 million to develop new welfare assurance program.
Businesses that use temporary visa workers, however, will have to puy up to $1800 a worker per year in a new annual foreign worker levy to raise money to support apprenticeships and traineeships in high-demand occupations that rely on skilled migration.
Food importers, meanwhile, will face stricter requirements, such as providing evidence that their product comes from places with internationally recognised food safety controls. Australian officials will also have new emergency powers to hold unsafe products at the border, with costs to be paid in full by industry.
A new range of commodity levies has been introduced on things bananas, avocados, seed cotton, and tea tree oil, while egg producers will see the emergency levy on laying hens phased out.
