Production in Australia is booming. In the last four years, the Producer Offset, PDV Offset and the combined Location Offset and Incentive have resulted in a whopping $16.5 billion of economic output, and in the last financial year alone, created 20,600 jobs. However, a new report from Olsberg SPI suggests uncertainty about the future of the Location Incentive risks continued growth and infrastructure investment.
If the government were to adopt the recent House of Reps inquiry’s recommendations to level each of the offsets to 30 per cent and decouple the Location and PDV Offsets, the total value that offset-supported production adds to the Australian economy every year would grow by almost 35 per cent to $1.6 billion by 2021-22.