Powered by MOMENTUM MEDIA
subscribe to our newsletter
Small business package tipped to provide housing boost

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.

Advertisement
Advertisement

“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.”

Small business package tipped to provide housing boost
mortgagebusiness

 

Latest News

Westpac and the Commonwealth Bank’s share of the third-party mortgage market has spiked, in contrast to sharp declines from NAB and ANZ, t...

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.   ...

The interest lenders earn on mortgages is expected to remain under pressure this year and next, according to Moody’s. ...

FROM THE WEB
podcast

LATEST PODCAST: What drops in fixed rates may mean for the mortgage market

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?