Budget 2021: What’s in it for construction workers and businesses

Just 12 months ago, the Australian construction sector was reeling and on the verge of collapse due to the coronavirus pandemic and the multiple lockdowns enforced around the country in a bid to curb the spread of the virus.

Now, the industry has not only bounced back but has surged to levels not seen in decades, largely thanks to Government incentives such as the HomeBuilder package. And the Government is not stopping at just that.

In the latest Budget handed down on Tuesday night, the Federal Government has committed billions of dollars to apprentice support, infrastructure upgrades, and more housing support which have all been designed to create more jobs and keep people in jobs.

Here’s a breakdown of the key measures outlined in the 2021-22 Budget designed to support the construction sector and its workers, and how you can benefit from them.

Small and medium businesses (businesses with turnover of less than $50 million) will enjoy a tax cut from 26 per cent in 2020-21 to 25 per cent from July 1, 2021.

The popular temporary full expensing measure that allows businesses to invest in assets and claim the full cost in the same tax year has been extended to June 30, 2023.

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This means tradies have more time to buy and wait for their new utes to arrive.

The temporary loss carry-back measure, which works hand in hand with the temporary full expensing scheme, has also been extended by one year (claimable to 2022-23). The measure allows businesses that previously had an income tax liability and have subsequently made taxable losses to claim a refundable tax offset up to the amount of their previous income tax liabilities.

More cash back means more money to spend, which translates to more economic activity.

The Government is also reducing taxes on income from innovative research to encourage businesses to undertake their R&D in Australia and keep patents here.

The Government’s Boosting Apprenticeship Commencements program as part of its JobTrainer package has been extended yet again due to popular demand.

The program, which subsidises 50 per cent of an apprentice’s wage for 12 months from their date of commencement, now has a new deadline of March 31, 2022, which means businesses who want to take part in the program will have to sign up new apprentices or trainees before March 31 of next year to be eligible. The subsidy will be capped at $7000 per quarter per apprentice or trainee.

If you’re a worker on low to middle income (earning up to $90,000 pa) you’ll receive a tax rebate of up to $1080 for singles or $2160 for couples.

The $450 per month threshold for super contributions by an employer has been scrapped, meaning if you work part time or casual and earn less than $450 a month your employer will still need to pay you superannuation.

The Government is expanding the JobTrainer scheme by a further 163,000 places and is extending the program until December 31, 2022. The measure was first introduced in 2020 to provide job seekers, school leavers and young people with access to free or low-fee training places in areas of skills shortages.

The Government is also committing to help women gain access to non-traditional apprenticeships like construction or manufacturing.

A key focus of this year’s Budget is on building Australia, with the Government sparing absolutely no expense in continuing to build and upgrade roads, rails and community infrastructure.

The Government is dumping an additional $15.2 billion into infrastructure which it anticipates will create 30,000 more jobs on top of the 100,000 already being supported by projects that are currently underway.

Some new commitments as outlined in the Budget include:

This is in addition to existing investment in major projects in planning or currently underway including the Western Sydney International (Nancy-Bird Walton) Airport, due to open in 2026, Sydney Metro Western Sydney Airport and the much-anticipated Melbourne Airport Rail Link.

The incredibly popular HomeBuilder package, which offers cash grants to everyday Aussies buying or renovating their homes, has had its construction deadline amended to reflect supply and resource constraints on the market so eligible Aussies don’t miss out.

The Government is also expanding the First Home Loan Deposit Scheme by releasing a further 10,000 slots available from July 1, 2021 to June 30, 2022. Under the scheme, designed to help Aussies enter the housing market sooner and easier, first home buyers can build a new home or purchase a newly built home with a deposit of as little as five per cent.

Under the expanded First Home Super Saver Scheme, eligible first home buyers will be able to release up to $50,000 in eligible superannuation contributions to bolster their deposit, up from $30,000.

A new Family Home Guarantee measure has been introduced to help single parents with dependents enter the housing market. Under the measure, eligible single parents can build a new home or purchase an existing home with a deposit of just two per cent, subject to their ability to service a home loan.

The Government has committed 10,000 places for the scheme over four financial years, starting from July 1, 2021.

Applicants for the Family Home Guarantee scheme do not have to be a first home buyer to be eligible, but must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.

All these measures are expected to deliver more confidence to the housing construction sector and continue to bolster the already booming industry.