While the Instant Asset Write-Off scheme is getting downgraded, Anthony Albanese has promised tradies won’t be left in the lurch.
The scheme will drop its eye-watering $20,000 asset threshold back down to just $1,000 after June 30 this year.
H&R Block Tax Communications Director Mark Chapman told Yahoo! Finance the ‘bad news’ was unexpected.
“This means that small businesses have a very limited opportunity to take advantage over the next three months, assuming the government can get its $20,000 threshold through Parliament,” he said.
The day after the Budget was released, AFR reported Albanese hinted at more financial benefits for tradies to come in his election campaign.
“We’ll have more to say about blue-collar workers and tradies as we go forward,” he said.
Sparkies get a Budget win
Electricians were one clear winner in the 2025/2026 Federal Budget released on Tuesday night.
The Budget confirmed that sparkies will only need one license to operate nationwide, allowing them to move between states/territories without constant occupation checks.
Treasurer Jim Chalmers added that more occupations may be considered for this framework.
The Budget also re-affirmed Federal Labor’s $10,000 election commitment to apprentices working in home construction trades.
The program is aimed at retaining apprentices, while also firming up a pipeline of tradies to tackle the housing shortage.
Under the program, apprentices would receive five increments of $2000 on top of their wages.
More wanted for home builders
Australian Constructors Association CEO Jon Davies said short-term solutions won’t help a construction industry that’s facing major productivity issues.
“Band-aid solutions just push the problem further down the road. We need big-picture reforms that make construction more efficient, lower costs and ease pressure on households,” he said.
“Closing this productivity gap would ease labour shortages and reduce building costs.”
“It’s widely recognised by government, industry and unions that contracts should be awarded based on long-term value – factoring in innovation, efficiency, and risk management – not just the lowest price.
“With an election on the horizon, there’s a real risk of losing momentum. The next government must make construction productivity a national priority. Without change, the cost of homes, infrastructure, and essential services will continue to rise – leaving Australians to pay the price.”
Housing Industry Association Managing Director Jocelyn Martin had similar thoughts, adding home construction in the next few years will have major impacts on home owners and renters alike.
“It was pleasing to see boosting housing supply as one of the key policy areas for this Budget, but the polices announced have missed the mark on addressing the key structural reforms needed,” she said.
“Australia needs to be delivering a quarter of million new homes year on year to meet our growing population and put downwards pressure on housing and rental affordability.
“Instead, we are facing a shortfall of new home delivery in excess of 70,000 year on year due to government induced roadblocks, chronic skills shortages and the outrageous level of taxes and regulatory barriers being imposed on home
building and new home buyers.”