Why I’m optimistic about the new Federal Budget for the trade industry
This week’s Federal Budget announcements include a number of positive announcements for tradies, homeowners and those working in the construction sector, continuing to demonstrate the importance of this industry in Australia’s economic re-growth.
Key initiatives relevant to the construction sector include:
Tradies and Apprentices
- A $1.2 billion apprentices wage subsidy program will see the government pay 50 per cent of an apprentice’s income – up to a cap of $28,000 a year. The government claims the subsidy would help create 100,000 new apprenticeship positions.
First Home Buyers and Homeowners
- The government’s First Home Loan Deposit Scheme is expanding to include an extra 10,000 first home buyers for a new home or a newly-built home. This will allow a deposit of as little as 5 per cent, with the government to guarantee up to 15 per cent of the loan, and is available until June 30, 2021. Builders will also benefit from extra support for first home buyers to encourage them to buy new houses and stimulate construction.
- There are a few measures to stimulate building across the country in a bid to create jobs and increase cash flows right now including the $688 million HomeBuilder scheme, which gives cash grants for people to renovate or build new homes. HomeBuilder has not been extended in Victoria.
- While a capital-gains tax exemption has been created for granny flats, provided a written agreement is in place.
- The Government is investing $14 billion in new and fast-tracked infrastructure projects. That includes bringing forward $7.5 billion of spending on road and rail projects, a new $2 billion investment in road safety upgrades, and $1 billion for local councils to upgrade roads, footpaths and street lighting.
It has been an uncertain several months for many Aussies in the trade sector, and with these various initiatives adding to the announcement of the ‘Homebuilder’ scheme, we are optimistic that the Government is placing trade and industry at the heart of re-building the post-COVID 19 Australian economy, over the next three to five years, and sees the value and importance of local trades.
At hipages, we champion tradies, and we’ll continue to do so as we lead the on-demand tradie economy – connecting homeowners with trusted tradies for any building and renovation needs whilst also providing a digital platform to support both the current and next generation of tradies.