Brain Industries managing director Gillian Summers says measures in the federal budget give it more confidence.
The industrial equipment manufacturer is set to benefit from several initiatives.
Ms Summers told the Newcastle Herald that it will be able to put on an apprentice or two thanks to the new JobMaker Hiring Credit initiative and wage subsidy program.
Under the wage subsidy, businesses that hire a new Australian apprentice or trainee will qualify for a 50 per cent wage subsidy. The JobMaker initiative credits $200 per week for each new employee aged 16 to 35, and $100 for those aged 30 to 35.
“We looked to hire a new apprentice earlier this year, but then COVID hit,” Ms Summers said.
“It might be only one or two to start with but we will now be able to re-look at that,” she said.
She said Brain can benefit from the government’s Research and Development (R&D) Tax Incentive reforms announced in the federal budget.
The incentive provides a tax offset for eligible activities. It increases the refundable R&D tax offset to 18.5% above the company tax rate for businesses with turnover less than $20 million.
“That will increase our tax offset to 44.5 per cent, which will encourage us to expand into new products.”
“We have an inventor in our business who loves to develop new products and improve on existing products such as pumps, conveyor pulleys, pulley lagging, rock dusters, and other conveyor systems products.
“But manufacturing and R&D is a rocky and risky road – you have to buy equipment before making any products and there’s lots of mistakes along the way.”
Ms Summers said the new federal budget initiatives gave her optimism about the future amidst the uncertainty of COVID-19.
“This gives us more confidence,” she said.