Australian manufacturing will not grow if broader economic conditions are not right. These are the critical building blocks necessary to attract investment, boost business opportunities and deliver a strong recovery. This is principally a role for government and we are pursuing reforms to our tax and industrial relations systems.
We are taking action to reduce energy costs, which is a significant factor in the competitiveness of our manufacturers. Affordable energy and energy technology is critical for our manufacturers, especially where they play an important role in producing critical food and medical supplies.
We are removing unnecessary regulation and reducing business compliance costs. We are focused on lifting the performance of our regulators to reduce the time and effort spent by businesses on unnecessary red tape.
We are delivering lowering taxes for businesses to encourage investment and growth. We are working on reforms that will help reduce the time and costs associated with insolvencies and we are reforming the Research and Development Tax Incentive to ensure that it supports and encourages businesses to undertake more R&D investment.
On the skills front, we continue to put the necessary building blocks in place to ensure that we have a pipeline of highly skilled workers to support technologically-advanced, high-value manufacturing. We are taking action in priority sectors that require new skills and in which there are shortages.
- We are delivering reliable gas supply at affordable prices, underwriting electricity infrastructure to support reliability and competition, and progressing electricity market reforms.
- Key to this work is making Australian gas work for Australians. Gas supplies some 40 per cent of the energy the manufacturing sector consumes, and is a critical input to chemicals and fertiliser production.
- To deliver reliable gas supply at affordable prices to manufacturers, the Government is investing $52.9 million to unlock new sources of gas supply, get additional gas to market as efficiently as possible, and empower domestic gas consumers to get better deals.
- Additionally, the Government’s Technology Investment Roadmap and annual Low Emissions Technology Statements will unlock new opportunities and sources of competitive advantage across the country by focusing on low emissions technologies with the potential to deliver the strongest economic and emissions reduction opportunities for Australia.
- We are taking action to promote the uptake of energy-efficient technologies to reduce energy costs and attract investment in Australian manufacturing, including by establishing the $95 million King Review Technology Co-Investment Fund. This initiative supports our technology-focused approach to reducing emissions, by helping companies to identify, assess and trial new technologies.
- As part of JobTrainer, we are skilling job seekers in areas of priority skills and providing wage subsidies for apprentices and trainees to help keep them in work. Similarly, reforms to the vocational education and training sector (including apprenticeships) will be critical in addressing current skills shortages, while our higher education reforms are aligning short-term training places with future skills needs.
- We have established a Global Business and Talent Attraction Taskforce to help the economy to recover and grow. The taskforce will operate as a strike team to lure international businesses and exceptional talent to Australia in priority industries, including advanced manufacturing.
- We are considering how Commonwealth procurement can build local manufacturing, including for Australia’s manufacturers, in line with international obligations.
- We are helping small businesses get paid on time by establishing the Payment Times Reporting Scheme. Under the scheme, large businesses will have to report publicly on how and when they pay their small business suppliers. This scheme will provide unprecedented transparency and will help small businesses and the general public make more informed decisions about who they do business with.
- We have committed $37.7 million to deliver a Cyber Security National Workforce Growth Program recognising that all industries, including manufacturing need cyber security professionals to support secure digital engagement into the future.
- The Deregulation Package includes a Digitisation of the Therapeutic Goods Administration measure that will streamline the application, tracking, payment and management of product listings for regulated and subsidised health related services.
- The Simplified Trade System will make trading simpler and cheaper by reforming our trade systems and regulations – ensuring an internationally competitive trade system that supports market expansion and resilience.