The Federal Budget lays the foundations for the Government’s commitment to a Free Trade Agreement with Indonesia, Trade Minister Steven Ciobo said last night.
“This is a vital step towards unlocking further opportunities for Australian exporters and creating more trade-related jobs,” he said.
“This progress complements the recent conclusion of the Pacific Agreement on Closer Economic Relations Plus Agreement with New Zealand and 12 Pacific Island countries, which will drive economic growth in Australia and the region.”
The Budget also provides funding for Australia to host the Association of South East Asian Nations (ASEAN) – Australia Leaders’ Summit next year.
Other Budget benefits for exporters include:
- Funding for landing pads under the National Innovation and Science Agenda, in San Francisco, Singapore, Shanghai, Berlin and Tel Aviv
- Continuation of the FTA negotiations with India and resumption of the Gulf Cooperation Council
- Launch of negotiations with the EU and discussions on a future possible FTA with the United Kingdom and countries in Latin America
- Continued focus on the work of the WTO, and on-going discussions with the parties to the TPP to explore options that would enable the economic and commercial benefits of the agreement to be captured
- Support for businesses to make the most of Australia’s Free Trade Agreements with a focus on regional Australia, including the FTA Training Provider Grants
- The role of Efic and the Export Market Development Grants Scheme were particularly noted in the context of regional Australia
- Ongoing support for EficDirect to assist SMEs and the Export Market Development Grants Scheme
Also, incorporated small businesses with turnover less than $10million will have their tax rate cut to 27.5%.
The lower corporate tax rate will extend to other companies with annual turnover less than $50 million by 2018-19.
Small businesses with an annual turnover of up to $10million to immediately deduct eligible assets each costing less than $20,000.
The Budget also provides a $300million incentive to States and Territories to cut red tape.
Mr Ciobo said the Government is also addressing key infrastructure needs and market priorities in the tourism sector.
“This Budget kicks off development of the Western Sydney Airport, with the Government injecting $5.3 billion of equity over the next ten years to develop this vital project, ensuring Sydney can meet aviation capacity over the coming decades,” he said.
“The Turnbull Government is also focussing on the important inbound China tourism market.
“Through the 2017 China Australia Year of Tourism we are encouraging more people from China to visit our country.”
The Federal Budget Papers can be found at: www.budget.gov.au