The Federal Budget 2020-21 contained a variety of measures which will assist businesses in the manufacturing sector in the same manner in which they are intended to assist the broader economy.
In addition, the Government announced its Modern Manufacturing Strategy to further support certain types of Australian manufacturers.
The announced measures were flagged in a 1 October 2020 press release issued by the Prime Minister and the Minister for Industry, Science and Technology, and focus on six areas of comparative advantage and strategic interest, being:
The focused nature of these measures indicates the Government is betting on certain areas within the manufacturing sector to help reverse, or at least slow, the decline in investment in Australian manufacturing which has been evident for some time now.
Whilst businesses within the comparative advantage / strategic interest areas will welcome the additional funding availability, significant additional support will be required to realise the Government’s stated intent to launch a “new era of Australian manufacturing”.
The Modern Manufacturing Strategy contains:
For manufacturing businesses that wish to access some of the announced support measures, the job now will be to:
For others, the announcements may accelerate plans to pivot their business operations to focus on areas which align with future government support as well as assessing their options regarding funding, mergers & acquisitions, supply chain and key markets.
For more information on the Modern Manufacturing Strategy announced in Federal Budget 2020/21, talk to your adviser or contact the Crowe Tax Advisory team.
For more Federal Budget coverage and news as it comes to hand, visit our Federal Budget Resource Centre.