A BASSENDEAN manufacturing business has welcomed Federal Labor’s Australian Investment Guarantee (AIG) election promise, which will reduce its tax burden and stimulate investment.
Hofmann Engineering provides specialist engineering services to Australia’s industry leaders.
The AIG will be complemented by the proposed $1 billion Advanced Manufacturing Future Fund (AMFF),
The AMFF will support manufacturing firms who want to grow their businesses and create jobs and those who may find it difficult to access private sources of finance.
It will facilitate investment in advanced manufacturing, engineering and design by partnering with private finance to reduce the risk in innovative projects.
Hofmann Engineering executive director John Hofmann said the business supported its initiative as it would help with investing in equipment and improve productivity.
“It will also enable Australian businesses such as Hofmann Engineering to grow and be more competitive in world markets,” he said.
“Reducing the tax burden on business will stimulate investment in machinery that in turn will support our growth in markets such as renewable energy and infrastructure.
“Support from the AMFF would accelerate Hofmann Engineering’s continuous improvement and innovation programmes allowing it to increase its participation in new markets and export opportunities.”
Mr Hofmann said the policy would generate new employment for existing skilled workers and provide more apprenticeships for young people.
Federal opposition innovation, industry, science and research spokesman Kim Carr, who visited the business with Perth MHR Tim Hammond on April 19, said the AIG would help firms remain “globally competitive”.
Mr Hammond said the initiative would deduct up to 20 per cent of the value of new investments, including machinery, trucks and copyrights, in the first year.