Powered by MOMENTUM MEDIA
subscribe to our newsletter

Small business package tipped to provide housing boost

The Abbott government's second Budget could provide further stimulus to the record building boom that is currently occurring.

Master Builders Australia chief executive Wilhelm Harnisch said the government’s $5.5 billion small business package would boost confidence, activity and jobs in the industry.

“In an industry as capital intensive as building and construction, the immediate write-off of assets up to $20,000 will provide an immediate stimulus,” he said.

“Measures to cut tax for both small companies and sole traders will also underpin a reboot of confidence for builders, home buyers and consumers.”

Australia is on track to build a record 205,500 homes this financial year, which would be 41 per cent more than the number built in 2011/2012, according to the Housing Industry Association (HIA).

Advertisement
Advertisement

PROMOTED CONTENT


The HIA also responded positively to the government’s small business package, which it said would provide important support to a wide range of small businesses in the residential construction industry.

“The combination of a small business company tax cut of 1.5 per cent, a 5.0 per cent cut to unincorporated small business profits up to $1,000 per year, and the accelerated depreciation allowance on all new assets up to $20,000 provides a positive impetus for the Australian economy,” it said.

“In particular, the immediate deduction available on the acquisition of new assets is a policy announcement welcomed by the residential construction industry.”

Small business package tipped to provide housing boost
mortgagebusiness

Latest News

New lending commitments for owner-occupiers fell by 2.5 per cent in June, the largest monthly drop-off in around a year. ...

Non-bank lender TechLend has gained $50 million in funding from a Silicon Valley venture fund, with plans to turbocharge the growth of its b...

The RBA has announced its August rate decision as ongoing lockdowns dampen speculation about imminent rate rises. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.