The annual budget released by the Australian Federal Government for 2023-2024 outlined beneficial measures to small and independent hotels, according to various hospitality companies.
Tourism Accommodation Australia CEO and acting CEO of the Accommodation Association Michael Johnson said that the 2023-2024 budget included several possibilities for smaller accommodation providers, in wake of a fairly turbulent few years for the industry.
“The Small Business Support instant asset write-off for small business with a turnover of less than $10m and the Small Business Energy Incentive will benefit these smaller and often independent operators,” said Johnson.
“These smaller businesses will be able to deduct an additional 20 percent of the cost of eligible depreciating assets that support electrification and more efficient use of energy.”
Johnson also added that the $15 billion set aside for initiatives focussing on the reduction of cost of living and childcare funding could have benefits for the hotel industry as well.
“Accommodation Hotels nationwide have been struggling to recover since the pandemic and any increase in discretionary spending is a little boost for the sector,” explained Johnson.
“Also helping women return to the workforce quicker can only help with the chronic labour shortage we still face.”
The increase of Visa Application charges raise some concerns however, that would most likely affect working tourists, and that an increase to the Temporary Skilled Migration Income Threshold could impact attracting hospitality staff in rural areas of the country, such as kitchen staff. Johnson also noted that the reduced hours for international working students could be difficult for accommodation companies, coinciding with major international events set to take place in Australia this year.
“From July 1 international student's work will be capped at 48 hours a fortnight, which will come at a difficult time for hotels trying to service many visitors for the FIFA Women’s World Cup.”
