As you may expect during an election year, the federal budget is rather friendly to many groups. The various groups winning this fiscal year include The Federal Police, taxpayers, automobile commuters, small and medium-sized business, and more.
As tradies, it is important to pay close attention to the ins and outs of the new budget. This year, both trade business owners and tradies will enjoy good news from the budget.
HOW WILL THE NEW FEDERAL BUDGET IMPACT TRADIES?
- Tax Relief – If you make up to $90,000, you are eligible to receive up to $1,080 back after filing your taxes. Many tradies fall into that income range and are happy to see the extra cash. Additionally, for those with a larger bottom line, those making $200,000 are looking at the potential for a decrease from 32.5% to 30% in their top tax rate in the future. Have a simple tax return? We recommend TaxReturn.com.au.
- New Construction Jobs – The Australian government plans an investment of $100 billion in infrastructure nationwide. The details of the plan point to Queensland and Victoria as recipients of a large portion of the funding.
- The nod to infrastructure improvement will have a positive impact on workers who are not as busy as they would like, especially considering residential construction is much cooler now. This increase in employment will hopefully have a domino effect and bolster individual spending across all platforms.
- The nod to infrastructure improvement will have a positive impact on workers who are not as busy as they would like, especially considering residential construction is much cooler now. This increase in employment will hopefully have a domino effect and bolster individual spending across all platforms.
- Vocational Education Sector to Get More Funding and Overhauls – Looking down the road with plans to forestall large labour shortages in numerous trades, the government allocated $525 million to improve Australia’s Vocational Education and Training sector. This is good news for those considering education in one of many trades.
- Ten training sites in areas with high youth unemployment and a National Careers Institute will emerge from this improvement package.
- The focus of the program is preparing workers for jobs in expanding trades such as cybersecurity, human care, digital technology, and advanced manufacturing. Training will be enhanced for areas already seeing a shortage of qualified workers such as bakers, plumbers, and carpenters. Ultimately, a batch of well-trained workers will benefit trade business owners.
- Larger Business Write-Offs – Business owners can write off $30,000 for an individual asset as opposed to the previous amount of $25,000. The instant write- off will help the asset depreciate much sooner than in the past.
- Apprenticeships Are Rewarded – The new Australian federal budget makes room for funding a skills program intended to create 80,000 apprenticeships. A large portion of this program focuses on attracting men and women to apprenticeships. To help with this goal, a payment of $2,000 goes to each apprentice when they reach a specified training milestone in their apprenticeship.
- In order to provide work for these apprentices, trade business owners will receive an incentive payment of $8,000 for apprentice employees. This is twice the previous amount paid for hiring an apprentice of $4,000. According to government sources, this plan should create 1.25 million jobs during a five-year period.
- This piece of the budget will cost tax-payers, but in the long run, this stands to give a tremendous boost to the overall economy. As more people are skilled and get jobs, more spending will take place, and everyone benefits.
- Help for Parents of Young Children – Tradies with young children often place them in some type of child care during the workday. It is safe to say earning a living would be next to impossible without safe and reliable childcare. As a part of the 2019 federal budget, access to early childhood education will receive $453 million.
- The money will go, in part, to offer parents of young children 15 hours of preschool a week. Estimates propose that around 350,000 children starting preschool in 2020 and 2021 will benefit from this program to get children on the path to education as soon as possible. While this will not answer all tradies child care needs, it is a step in the right direction.
BOTTOM LINE
The positives of this year’s federal budget doubtlessly attempt to raise morale just in time for the election.
But whatever the thought behind the tax breaks, apprenticeship payment, infrastructure investment, and the rest of the positive plans, it is safe to believe that these changes will help not only tradies, but the population of Australia stands to benefit greatly as well.