Federal Budget a “shot in the arm” for builders and tradies

In the wake of the federal budget announcement, Master Builders Australia has labelled more infrastructure spending and a decreased tax rate for small to medium-sized businesses as industry confidence boosters.

“Measures to cut company tax rates for SMEs and the expanded tax write-off will be an immediate shot in the arm for builders, particular in the equipment intensive building industry,” said CEO Wilhelm Harnisch in a statement.

Harnisch is relieved on behalf of the industry about the government’s $50 billion investment into roads, rail and dams, as well as negative gearing remaining unchanged as expected.

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“More than 300,000 tradies and builders in Australia’s $200 billion building industry are winners from the budget,” he said.

Detailed in Treasurer Scott Morrison’s budget overview, lower tax rates will provide relief to over three million businesses in Australia and 500,000 Australians will stay in the middle tax bracket.

“The Government has delivered on Master Builders’ calls for fiscal and industry policy settings that are targeted and realistic. It will boost confidence and should bring forward economic activity, investment, growth and jobs in the building industry,” said CEO Wilhelm Harnisch.

He also hoped the government’s proposed youth employment strategy including an $840 million package of skills training, internships and wage subsidy will keep the  building industry strong.

This budget news comes as the RBA slashed the cash rate for the first time in 12 months to 1.75% just hours before the government’s announcement.

Find out which banks passed it on here, or switch to a more competitive rate via the Mozo home loan refinancing hub.