Measures in the federal budget for 2023-2024, announced on Tuesday May 9, are expected to benefit small and independent hotels, according to key accommodation associations.

Tourism Accommodation Australia CEO and acting CEO of the Accommodation Association Michael Johnson said the Budget revealed a number of positive outcomes for smaller accommodation providers.

“The Small Business Support instant asset write-off for small business with a turnover of less than $10m and the Small Business Energy Incentive will benefit these smaller and often independent operators,” said Johnson.

“These smaller businesses will be able to deduct an additional 20% of the cost of eligible depreciating assets that support electrification and more efficient use of energy.”

Johnson said the sector more broadly is likely to see some benefit from the AU$15b in initiatives aimed at reducing the cost of living and funding to make childcare more affordable.

“Accommodation Hotels nationwide have been struggling to recover since the pandemic and any increase in discretionary spending is a little boost for the sector,” he said.

“Also helping women return to the workforce quicker can only help with the chronic labour shortage we still face.”

There are some concerns, however, about the increase in Visa Application Charges, which would impact working holiday makers, and an increase to the Temporary Skilled Migration Income Threshold, which could affect recruiting key hospitality workers, such as cooks, particularly for regional and rural areas.

The reduction of International Student Working hours will also be difficult for accommodation hotels, according to Johnson.

“From July 1 international students work will be capped at 48 hours a fortnight, which will come at a difficult time for hotels trying to service many visitors for the FIFA Women’s World Cup,” he said.