Tradies Win in the Budget

May 04 2016   10 AM  

The 2016-17 Budget is a win for the $200 billion building and construction industry.

Company tax rate cuts

It has been confirmed that from July 1, small to medium-sized businesses with an annual turn over of up to $10 million dollars will qualify for a company tax rate of 27.5%, down from 30%.

$20,000 instant asset write-off and tax concessions

Businesses under the new threshold will benefit from the unlimited $20,000 instant asset write-off scheme introduced for some small businesses in last years’ budget. Previously, the scheme was available to businesses with annual earnings under $2 million and in the 2015 financial year 99,000 small businesses made claims. The current timeframe for the scheme will see it end in June 2017.

The Government also revealed that small businesses under the new $10 million threshold will have access to tax incentives including the simplified trading stock rules, depreciation pooling provisions, and Pay-As-You-Go Installments payments option.

These measures will provide an immediate boost for builders and trade contractors operating in the equipment intensive building industry.

Master Builders Comment

“This Budget should act to underpin a boost in building industry confidence, through targeted growth measures and a credible budget repair strategy to take Australia into the next decade,” said Wilhelm Harnisch, CEO of Master Builders Australia.

“It provides the settings that will enhance the capacity to strengthen the nation’s economic stability, future growth path and greater investment; fundamental requirements for a strong building industry,” 

“Other measures including the Government’s plan to reduce company tax progressively to 25 per cent over the next decade, the continued rollout of the Government’s $50 billion infrastructure package, confirmation that there will be no change to negative gearing and the $840 million youth employment package will also boost confidence and jobs,” 

“Overall the Budget has delivered for business be setting out a credible economic strategy that deserves a chance to succeed. Confidence and stability are the essential foundations for growth in new housing and new investment in the commercial construction sector,” he said. {source}

ConX welcomes the support this budget provides to the industry. If you're hiring tradeies, subbies or looking for work, start by building a free profile on the ConX network today.