Mixed blessings for bulkies from the budget
Bulk handlers received mixed results in the wash up of last night’s federal budget. The corporate tax rate did not fall as mooted, but manufacturing received a $30m boost to innovation. The resources sector avoided new diesel taxes, but on road heavy vehicles copped a tax hike.
Perhaps the biggest potential windfall for many bulk handlers from the budget, a planned 1% cut to the company tax rate, has been ditched. The rate remains at 30%.
Miners dodged a proposed cut to the diesel fuel rebate. Valued at $2bn annually, the Fuel Tax Credit is designed to remove excise. The government confirmed it will remain in place for off-road heavy vehicles.
Bulkies will pay more for on-road heavy vehicles. From July 1, the road user charge will rise from 23.1c to 25.5c per litre. The road user charge affects the fuel tax credit rate claimed for heavy vehicle use on public roads.
A new initiative, the Manufacturing Technology Innovation Centre will receive $30m over the next four years. Minister for Industry and Innovation, Greg Combet, said the centre will boost innovation in the sector.
The centre will fund projects through grants in an aim to foster industrial design, engineering and product development.