We always knew the new financial year budget of 2021-2022 was going to be interesting. State and federal governments have had to create strategies to address major labour shortages and find the most efficient way to fuel an economic recovery.
Fortunately for construction, the federal Government understands the value in fueling the industry, seeing it as an excellent opportunity to stimulate the economy through job creation and supply chain support.
So, what does this mean in practice? Well they’ve allocated billions of dollars to support a range of initiatives and sector support. Here are just some of the expected impacts of the new financial year budget for construction folk:
Tax cuts and incentives for businesses
From 1 July 2021 small and medium businesses that turn over less than $50 million will enjoy a tax cut from 26 to 25 percent.
The temporary full expensing measure that allows businesses to claim the full costs of assets in the same year they were purchased has been extended to 30 June 2023.
There are also new incentives for construction businesses to conduct research and development to keep patents here in Australia through reduced taxes on income from innovative research.
The Boosting Apprenticeship Commencements program has been extended, which means 50% of an apprentice’s wage will be subsidised for 12 months from their date of commencement. Businesses that want to take advantage need to sign on new apprentices by 31 March 2022.
Superannuation and tax cuts for tradies
If you earn under $90,000 you can receive a tax rebate of up to $1080 for singles or $2160 for couples, giving you a little extra money to save or spend to boost the economy.
In terms of super there was previously a $450 per month threshold which essentially meant that casual and part time workers who earned under $450 were not entitled to super. This threshold has now been scrapped so if you’re casual or part time and earning under $450 a month your employer will be required to pay you super.
JobTrainer expansion for trades
The popular JobTrainer scheme was introduced in 2020 to provide school leavers, job seekers and young people with access to free or low-fee training places for industry sectors experiencing skills shortages. The scheme has now been expanded to add a further 163, 000 places.
Infrastructure project boosts
When it comes to funding new infrastructure in 2021-22 the Government has not held back. They’re committed to ‘building Australia’ and have allocated $15.2 billion into infrastructure.
The measures are intended to create up to 30,000 new jobs across the country. So, if you’re looking to expand your construction career in the next two years keep an eye out for the influx of infrastructure projects coming soon.
Want to make sure you’re ready for the construction boost? Get your existing skills certified and set yourself up for success in the new financial year.
Call our team on 13 17 75 or contact us online to find out how to get started.