Budget 2021-22 overview for insurance brokers
The federal budget for 2021-22 delivered by the treasurer Josh Frydenberg has addressed many of the concerns being faced by small businesses. It has been an exceptionally difficult period and the government’s economic response is designed to support Australian businesses through it.
The National Insurance Brokers Association (NIBA), CEO, Dallas Booth welcomed the budget and said, “Measures including tax cuts for small businesses, incentives to invest in your business, significant support for regional areas, targetted industry packages and more will not only help insurance clients but also broking businesses.”
He added that what insurance brokers do is more than just procure policies, they are trusted advisers for business owners, “There is continued support for many sectors, regions and communities that face significant challenges and brokers need to tell clients about every bit of help available.”
The latest budget is a clear indication that we are now transitioning to ensure the Australian economy recovers strongly by targeting additional temporary support measures to boost household incomes, bring forward business and infrastructure investment activity, and drive the unemployment rate back down.
The government will deliver more than $16 billion in tax cuts to small and medium businesses by 2023-24, this includes reducing the tax rate for small and medium companies, from 30 per cent in 2014‑15 to 25 per cent from 1 July 2021. It is also making significant investments in digital infrastructure to support Australian businesses and workers. Small businesses are being supported to adopt digital technologies through a $12.7 million expansion of the Digital Solutions – Australian Small Business Advisory Service. A further $15.3 million will be used to drive business uptake of e-invoicing, which can deliver up to $28.2 billion in net benefits over 10 years.
The government is investing $6.4 billion in 2021‑22 to build the skills that Australia’s economy needs to thrive in a post‑COVID‑19 world. An additional $2.7 billion has been announced to extend the Boosting Apprenticeship Commencements program.
The demand-driven program is expected to support more than 170,000 new apprentices and trainees by paying businesses a 50 per cent wage subsidy over 12 months for newly commencing apprentices or trainees signed up by 31 March 2022. The subsidy will be capped at $7,000 per quarter per apprentice or trainee.
This budget also implements measures announced by the Government in its response to the recommendations of the Royal Commission into National Natural Disaster Arrangements.
On the disaster mitigation funding announcement, Andrew Hall, CEO Insurance Council of Australia said, “Insurers look forward to working with the Government and other stakeholders on the design and implementation of the cyclone reinsurance pool ahead of its implementation mid-2022.”
Booth added, “We at NIBA fully support these measures and look forward to working with the ICA to ensure that all Australians have access to insurance cover that is affordable.”
You can read more about the support available to business on the government website: https://budget.gov.au/2021-22/content/download/glossy_jobs.pdf