News, Tradie Business

Write-offs and new builds: Big Budget boost for tradies

The Federal Budget was released earlier this week, and tradies were massive winners, according to numerous organisations.

Everyday tradies

The popular instant asset write-off scheme is back, allowing tradies (who turnover less than $10 million per year) to claim up to $20,000 in work related write-offs. This has historically included vehicles, equipment such as tools … even coffee machines.

Discussions to raise the threshold to $30,000 stalled before the Budget’s release, and the Council of Small Business Australia is still advocating for it to be raised to $150,000.

DON’T FORGET: Tax time tips for tradies

Apprentices

The Budget has committed a further $90 million to boost the apprentice pipeline. This funding will cover 20,000 apprentices studying in fields related to housing and construction.

“Apprentice tradies are in a world of pain thanks to the cost-of-living crisis, so this extra help will mean fewer drop out because of the financial squeeze,” CFMEU National Secretary Zach Smith said.

Apprentices learning new energy related courses will also have access to $10,000 grants to contribute to their studies.

Housing Industry Association Managing Director Jocelyn Martin said in order for Australia to meet its hefty housing targets, incentives were needed to bring more apprentices into the fold.

“One of the key issues in building these much needed homes are having an adequate workforce, and without this the government will fall well short of its housing target,” she said.
“It is therefore pleasing to see the Budget’s commitment to start to address these skills shortages in our sector, as well as the recognition of this as a key area of the government’s focus going forward.”

mirexon: stock.adobe.com

Housing and infrastructure

Master Builders Australia CEO Denita Wawn said funding was much needed across a spectrum of housing projects.

“The key to solving the housing crisis: supply, supply, supply,” she said.

“We know whether it’s social and community housing, rentals or owner-occupiers, there is not enough supply to house all Australians.

“Targeted measures in social housing, student accommodation and critical infrastructure all go towards relieving some of the more acute supply pinch points.”

The Budget committed $1 billion to states and territories for improving their roads, sewers, energy and plumbing connections to new homes and social housing.

A further $1 billion was allocated to crisis and transitional accommodation for women and children fleeing domestic violence. This is part of the Federal Government’s National Housing Infrastructure Facility scheme.

“Increased funding for critical infrastructure to support new home building reinforces the important role of commercial and civil construction in building sustainable communities.

“Requiring universities to increase their supply of student accommodation is an excellent example of how Ministerial portfolios should be working together,” Wawn added.

“With a strong funding stream now locked in, governments need to turn their minds to reducing the other barriers to housing supply like reducing the cost of building and time it takes to build.

“Workforce shortages, low productivity, industrial relations and planning reforms all continue to drag down our capacity to deliver the 1.2 million homes over the next five years.”

 

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