Treasurer Jim Chalmers singled out Wollongong as the location of his government's Hydrogen Headstart fund.
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The government will invest $2 billion to support hydrogen production, with Wollongong no longer overlooked as it was in previous federal hydrogen funds.
"Hydrogen power means Wollongong, Gladstone and Whyalla, can make and export everything from renewable energy to green steel," the Treasurer said.
The funds will specifically go towards large scale hydrogen production, such as the project being developed by BOC at Cringila.
Business Illawarra executive director Adam Zarth said the recognition acknowledged the innovation occurring in the Illawarra.
"The $2 billion Hydrogen Headstart Program announced tonight will support investment in a key emerging renewable energy opportunity in our region where we have the opportunity to produce and ultimately export this clean energy source of the future."
It is part of a $4 billion spend on Australia becoming a renewable energy superpower in this budget, but businesses are hoping the budget also restores confidence across sectors.
![Flagstaff Group CEO Roy Rogers said the government needed to boost confidence in this year's budget, as consumers cut back on discretionary spending. Picture by Adam McLean Flagstaff Group CEO Roy Rogers said the government needed to boost confidence in this year's budget, as consumers cut back on discretionary spending. Picture by Adam McLean](/images/transform/v1/crop/frm/123041529/9447d3ae-e979-43d4-ab52-b0fb5f2b5f80.jpg/r0_488_6454_4131_w1200_h678_fmax.jpg)
The afternoon before Jim Chalmers handed down the 2023 federal budget, the ABS released two sets of figures.
Household spending was down on the previous month, with particular slow downs in discretionary spending.
Retail sales volumes were also lower, falling by 0.6 per cent, and Roy Rogers, CEO of Illawarra disability employment provider Flagstaff Group, said these are the kinds of figures he's watching as the budget is released.
"The biggest impact we are seeing right now is a decrease in discretionary spend," Mr Rogers said.
"We've had our quietest April for a number of years."
Laundry services were particularly down, as fewer people travelled to hotels and motels over the Easter long weekend and school holidays, while the commercial kitchen services saw fewer orders as people cut back on their food budgets.
On top of this, the cost of materials, equipment and contractor prices were increasing.
While he said that the government had to be aware of not over-stimulating the economy and further fuelling inflation, Mr Rogers said measures had to get consumers back to spending.
"It's about confidence," he said.
In lieu of these changes, Mr Rogers said his business was hiring fewer casuals for peak periods and delaying non-essential investment.
Being a relatively energy intensive business, Mr Rogers is exposed to rises in the cost of gas and electricity and said assistance to install the likes of solar arrays or more energy efficient equipment would be welcomed.
RDA Illawarra CEO Debra Murphy said the Hydrogen Headstart initiative, along with the commitment to a National Net Zero Authority, would draw on the Illawarra's strengths.
"The Hydrogen Headstart and the other decarbonisation initiatives combined will be a big opportunity."
The government has given small businesses with turnovers under $50 million, which would include Flagstaff Group access to up to $20,000 in tax relief for equipment to cut energy bills, such as more efficient appliances or swapping gas for electricity.
"Here at Unanderra, we've already got 100 kW on one of our buildings, and I'm just getting some quotes to put another 100 on," he said. "If there was some money around for that, that would be fantastic."
The budget contained a temporary increase to the instate asset write-off threshold to $20,000, which will enable businesses to invest in their operations, Mr Zarth said.
"Small-to-medium enterprises across our region are struggling with the rising costs of electricity and gas, and at the same time are keen to become more energy efficient and play their role in the transition to a net zero economy."
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