The 2022 Federal Budget will boost Australia’s commercial property, even though there was no specific financial focus relating to the asset class. 

 According to Angus Raine, Executive Chairman, Raine & Horne, the budget’s cost of living tax offsets, the 22 cents cut to the fuel excise and other rebates would help “fill Australians’ pockets, along with the massive household savings war chest accumulated during the pandemic which will all trickle down to the retail sector and, secondly, tourism.

 “They are probably the two biggest sectors that have suffered the most from COVID,” he said.

Cost of living support 

The Government pledged to cut the fuel excise by 22 cents for the next six months, which it claims will save a family with two cars who fill up once a week around $30 a week or around $700 over the next six months. 

Meanwhile, a new one-off $420 cost of living tax offset will be paid to more than 10 million low-and-middle income earners. Also, a new one-off $250 Cost of Living Payment, will be delivered within 6 million Australians including pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders will benefit. 

Angus said, "This is a good budget for commercial property. I feel like it's 24 December and we've already opened our presents. Everything, whether it's cost of living support, small business benefits, has a trickledown effect or a trickle-up effect to commercial property."

Apprenticeship boost

The Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies will be extended for an additional three months

According to Angus, the $2.8 billion apprenticeships boost will prove “very good for the construction industry screaming for apprentices.”

The Government pledged to provide $5,000 payments to new apprentices and up to $15,000 in wage subsidies for employers who take on these young workers in the budget. 

Rewards for small business

The 2022/23 Budget will also reward small businesses that invest in skills and new technology. Starting from 29 March, for every hundred dollars a small business spends on training its employees, they will get a $120 tax deduction.

In this budget, the Government is also backing small businesses embracing the digital revolution. From 29 March, every hundred dollars these small businesses spend on digital technologies like cloud computing, eInvoicing, cyber security and web design will see them get a $120 tax deduction. This new measure will support investments of up to $100,000 per year.

A boon for the industrial sector and the regions

 Regional business and the commercial property sectors will win big after the Federal Government pledged a record infrastructure investment, with $17.9 billion committed to new and existing infrastructure projects in the infrastructure pipeline. 

 Some critical new commitments funded in the 2022–23 Budget include:

• $3.1 billion in new commitments to deliver the $3.6 billion Melbourne Intermodal Terminal Package (VIC), including:
• $1.6 billion for the Brisbane to the Sunshine Coast (Beerwah-Maroochydore) rail extension (QLD)
• 1.121 billion for the Brisbane to the Gold Coast (Kuraby – Beenleigh) faster rail upgrade (QLD)
• $1 billion for the Sydney to Newcastle – (Tuggerah to Wyong) faster rail upgrade (NSW)
• $678 million for Outback Way (NT, WA, QLD)
• $336 million for the Tasmanian Roads Package – Northern Roads Package – Stage 2 (TAS)
• $200 million for the Marion Road – Anzac Highway to Cross Road (SA).

The Government will also deliver a new $811.8 million Connecting Regional Australia Initiative to expand regional mobile coverage and address blackspots on up to 8,000 km of roads and adjacent households, businesses and tourist hotspots.

 Angus, who has been calling on fast-rail between Sydney and Newcastle for 15 years, said, “the country rides on road and rail infrastructure, so this investment will be a huge boost for driving regional population growth.

 “Improvements in regional Australia will encourage business to relocate both to regional areas and cites too, which is positive for commercial property.” 

 He continued, “Combine the transport infrastructure improvements with mobile coverage improvements, and more businesses will look at relocating to regional areas and regional cities. And that, of course, will positively impact commercial property.”