A Newcastle manufacturing company says it has renewed confidence in the future after Tuesday's federal budget.
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Carrington's Brain Industries is set to benefit from several initiatives announced that are designed to help businesses get back on their feet after the impact of COVID-19.
Brain industries managing director Gillian Summers said the business would be able to put on an apprentice or two thanks to the new JobMaker Hiring Credit initiative and wage subsidy program.
Under the new wage subsidy program, businesses that hire a new Australian apprentice or trainee will qualify for a 50 per cent wage subsidy, while the JobMaker initiative credits $200 per week to a business for each new employee aged between 16 and 35 years old it employs, and $100 for each new worker between 30 and 35.
"We looked to hire a new apprentice earlier this year, but then COVID hit," Ms Summers said. "It might be only one or two to start with but we will now be able to re-look at that."
She said her company would also profit from the government's Research and Development (R&D) Tax Incentive reforms announced in the budget.
The incentive encourages companies that engage in R&D, by providing a tax offset for eligible activities. The reforms will increase the refundable R&D tax offset to 18.5 percentage points above the claimant's company tax rate for businesses with turnover less than $20 million.
"That will increase our tax offset to 44.5 per cent, which will encourage us to expand into new products," Ms Summers said. "We have an inventor in our business who loves to develop new products and improve on existing products.
"But manufacturing and R&D is a rocky and risky road - you have to buy equipment before making any products and there's lots of mistakes along the way."
Ms Summers said after the uncertainty of COVID-19, the new initiatives gave her optimism about the future.
"This gives us more confidence," she said.
The Council of Small Business Organisations Australia was also pleased with the new initiatives for businesses.
"Measures like the temporary loss carry-back, the JobMaker Hiring Credit, and JobTrainer Skills package are very welcome to help keep small businesses afloat and to help them start creating new jobs," the council's chief executive Peter Strong said.
"But despite these measures being massively helpful for small businesses, nothing government can do replaces customers coming through the front door. We still need Australians to take direct action and support local small businesses."