There are many potential positives to the 2015 Federal Budget
The reduction in the company tax rate for small business and the $20,000 instant asset right-off are important measures, not only for restaurants and caterers, but for the customers who are small businesses.
There’s also the positivity that’s building as a result of the 2015 Budget. The most important potential for our industry is the up-turn in consumer sentiment. This provides a faster reaction from consumers and businesses (as consumers) than the actual flow through of the measures themselves.
The three major market segments for the industry should, as a result of the Budget, be in growth mode. The tourism sector (around 30 per cent) is growing both in spend and visitation. The Restaurant Australia campaign is driving additional spend from off-shore, and the focus from State tourism organisations on food and wine has had flow-on effects to domestic tourism activity.
The corporate market (around 30 per cent) of the overall market, will also be in a growth phase in relation to restaurant and catering spend.
The 2015 Budget has started to build a further growth story for the restaurant and catering industry. Let’s hope this is just the first chapter and further policy change to encourage small business spending flows from here.
CEO, Restaurant & Catering