Stimulus package “well targeted”: Master Builders

Construction peak body, Master Builders Australia, has welcomed the Federal Government’s stimulus package with open arms, saying the cash injection is much needed to keep businesses running and workers employed.

On March 12, the Morrison Government announced it will inject $17.6 billion to keep businesses and households afloat while the country weathers through the current Coronavirus induced chaos.

As part of the package, $6.7 billion will go to boosting cash flow for employers by up to $25,000 with a minimum payment of $2000 for eligible small and medium-sized businesses. $1.3 billion will go to support small businesses to support the jobs of around 120,000 apprentices and trainees.

In addition, the instant asset write off threshold has been increased from $30,000 to $150,000 and will expand to include businesses with aggregated annual turnover of less than $500 million, up from $50 million, until 30 June 2020. Assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.

Master Builders Australia CEO, Denita Wawn, has applauded the Government’s swift response.

“In times of crisis people look to their leaders to respond and the Government through this stimulus package has done that,” she said.

“Right now what our industry most needs is confidence and this clear signal from the Government that they are determined and committed to doing whatever it takes is extremely welcome.”

She added more than 380,000 small businesses and tradies in the building industry will benefit from the stimulus package that has a strong focus on backing small businesses.

“We strongly back the moves to back businesses, particularly small businesses, to keep workers and apprentices employed. The danger with economic shocks is that the labour market recovers slower than the rest of the economy so moves to offset employers shrinking their workforce is very well targeted,” she said.

“However, if there is a major contraction in building activity then the benefit of these measures will be blunted.”

Wawn said the Government must take a strong leadership role in ensuring that construction of government projects currently underway continue and that projects scheduled to commence are not delayed or withdrawn.

“The Government could also bring forward expenditure on existing projects. Accelerating construction of current projects and bringing forward construction of shovel ready projects, big and small, would provide an immediate strong impetus for building firms to take up tax write off and investment incentive measures,” she said.

“Our industry also remains nervous about how protracted the inevitable shortage and delayed delivery of imported building products will be.

“This is a hit to our industry that is looming over the next few months and additional measures and extensions of some stimulus measures may be required to help the industry weather that storm.”