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).
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.”