Small business package tipped to provide housing boost

This week’s Federal Budget could provide further stimulus to the record building boom currently underway.

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,” Mr Harnisch said.

“Measures to cut tax for 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, 41 per cent more than the number built in 2011/2012, according to the Housing Industry Association.

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 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.”

[Related: Government threatens agents in Budget]

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